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Dude! So you've read just about everything you could possibly get your hands on about the Forex. Now you want to get your feet wet but aren't sure where to start. Well then this blog is for you! Follow along as I take a simple forex trading system and apply it to an unsimple market. If you're new to the blog you should read this first.

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April 2007

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Cowabunga System Daily Update: 04/25/07

Posted 16:49 25 April 2007 | 3

If this is your first time visiting this blog, read this first!

Main Trend

Current Trend= The trend remained up the entire day.

Today I only looked for long trades.

Today's Surf

1:45 am ET - There was a moving average crossover for a long trade. RSI was greater than 50, Stochastics were trending up, and MACD was negative and gaining value. This was a valid trade. The entry was at the close of the candle which was at 2.0032 with a stop at the most recent swing low which as at 2.0020. Since I was 18 pips away from the nearest 50 level I decided to set my target for 2.0050.

2:00 am ET- . My target was hit. Price did not make a clean break of the 2.0050 level so I decided to take my final profit.

4:00 am ET- There was a valid signal but because it was a news candle (German IFO) I did not take it.

10:15 am ET - There was a moving average crossover for a long trade. RSI was greater than 50, Stochastics were trending up, and MACD went from negative to positive. This was a valid trade. The entry was at the close of the candle which was at 2.0049 with a stop at the most recent swing low which as at 2.0012. Since I was only 1 pip away from the nearest 50 level (2.0050) I decided to go for the same amount of pips I was risking, which in this case was 37. This put my target at 2.0086.

3:00 pm ET- Unfortunately I am stopped out of my trade.

Trade Result: +18 -37 = -19 pips; R-Multiple= 1.00, -1.00

Questions? Read the Cowabunga FAQ.

Want to discuss the Cowabunga System? Visit our Forums.

Cowabunga System Daily Update: 05/01/07 16:11 01 May 2007
Cowabunga System Daily Update: 08/28/07 15:32 28 August 2007
Cowabunga System Daily Update: 07/09/07 15:57 09 July 2007
Cowabunga System Daily Update: 04/13/07 15:37 15 April 2007
Cowabunga System Daily Update: 04/11/07 16:12 11 April 2007

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Hi, I also saw the 10:15am set up -- which looked quite good. However, the set up was caused artificially b/c of the lower number New Homes Sales report that came out which weakened the US dollar and gave a little rally to the GBP. Hence I decided not to take the trade b/c I thought it was not a real set up -- though it looked quite good. It is like meeting a beautiful woman in the dim part of the bar --then the lights get turned on --and you wish you had not offered to buy her a drink. I am interested in your opinion here. Thanks.

pinetree | Posted 17:16 25 April 2007

Good day, I was told by a trader that I respect that he never uses stops anymore, and since then is making more money. He does of course only trade the biggies, so his philosophy is none of them are going broke, so the cycles will take care of things. I have used this and partly agree with him, but only if I am away from my desk. last night was an example in point, the cable went down and now has recovered nicely, and I'm still in a trade. How do you see this? I sit in South Africa, by the way

Robertt | Posted 01:34 26 April 2007

pinetree- Yes I agree with what you say. If this signal had been formed at the time of the actual release (10am ET) then I definitely would not have entered. However, I've found that more often than not, if the price continues to move in the direction of the news candle after the actual release then it usually does continue forward at least for that day. This was just one of those days where it didn't work out. I commend you though for using your discretion as trading around news times can be tricky. Good work!

Robertt- Trading without stops can be debated with very good arguments for both sides. I too know traders that don't trade with stops. Instead they hedge themselves by opening positions that negatively correlate with what they have open. The problem with trading without stops is that you have to make sure you have enough usable margin to withstand wide swings. While trading without stops can be very profitable, I only recommend it to those who are very advanced and know exactly what they are doing. Here at BabyPips.com, our focus is to help beginner traders, and as a result, we firmly recommend that all traders use stops to properly manage their losses. Hope that helps!

pipsurfer | Posted 14:22 26 April 2007

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