The Cowabunga System

[chady250]

Hi everyone, I am interested in this trading system. I just opened a small Micro account to trade this system only. I have a question regarding it, does the system usually have a huge risk to reward ratio??? I noticed that on certain trades, we start by risking about 50 to 100+ pips to gain 30 or more.

Thanks
Chady

[phil838]

Hi Chady,

The system usually has more reward than risk, but because of the current economic condition the markets are a little funny right now. Remember you don't have to take every trade that the system offers you. If the ratio is out of wack you can always skip that trade and wait for the next.

If you look on Pip Surfer's blog he has stats for all of his trades in 2007 and the first half of 2008. They list the average win and loss for each month. In 2007 the average win was 46 and average loss was 25, which is a little less than a 2:1 win/loss ratio.

Phil

[chady250]

I see, that is very true, it just seems odd to risk 200 pips to gain 26ish pips on thursdays trade. I will begin trading the system later tonight but I believe I wil avoid any high risk situation such as last thursdays trade. Thanks for the advice by the way

Originally Posted by phil838

Hi Chady,

The system usually has more reward than risk, but because of the current economic condition the markets are a little funny right now. Remember you don't have to take every trade that the system offers you. If the ratio is out of wack you can always skip that trade and wait for the next.

If you look on Pip Surfer's blog he has stats for all of his trades in 2007 and the first half of 2008. They list the average win and loss for each month. In 2007 the average win was 46 and average loss was 25, which is a little less than a 2:1 win/loss ratio.

Phil

[martin01]

Originally Posted by phil838

Hi Chady,

The system usually has more reward than risk, but because of the current economic condition the markets are a little funny right now. Remember you don't have to take every trade that the system offers you. If the ratio is out of wack you can always skip that trade and wait for the next.

If you look on Pip Surfer's blog he has stats for all of his trades in 2007 and the first half of 2008. They list the average win and loss for each month. In 2007 the average win was 46 and average loss was 25, which is a little less than a 2:1 win/loss ratio.

Phil

Hello Phil,

Here you described about Cowabunga trading system. Here you have told about pips with same pips i am trading with AVAFX then what is different between Cowabuga and AVAFX.

[phil838]

Martin,

I think the problem is that you're confused about what Cowabunga is. It's a trading system that helps tell you when to enter and exit trades. You can learn about it by clicking BLOGS at the top of the page and reading Pip Surfer's "Pip my System" blog.

AVAFX is a forex broker, and you should be able to trade the Cowabunga system using their platform just fine.

Hope that helps. Let me know if you still have questions.

[martin01]

Originally Posted by BigPippin

Hello everyone,

I know many of you have been starting to follow the "Pip My System" blog and have many questions. I wanted to start this thread so that hopefully other traders might be able to help answer some of those questions. This can be a place for all of you to discuss any and everything about the system. If you are new and don't know what the heck I'm talking about you can check out my first post which explains the system in detail:

"What to do after you finish the School of Pipsology"

If you've been following the blog for a little while and have some questions, please visit the FAQ page before asking. You may find the answer your looking for:

Cowabunga FAQ

Remember, this is not a holy grail. The system has its flaws, but it does work pretty well. Also, this system is NOT for everyone. If this doesn't fit your trading style, then don't force yourself to trade it. You'll be miserable and it just won't be fun. I've tried doing that before and I hated it. The Cowabunga system is meant for educational purposes and is simply a way to show you that a simple system can be effective in the Forex market if you stick to your rules and stay diligent. Have fun with it, and maybe it will inspire you to come up with a system of your own.

Happy trading!

-BP

Hello Friend,

I have been with forex market since 2004, but due to some family reasons i was away from the market. Now again i am willing to enter this market. I have been searching on the net for various forex brokers. I found broker with whom i was trading before with so many changes i could not believe it. I have also seen the brokers also with so many changes.

Friend you have told here about (Pip My System) what is it please educate me more about it. At my beginning stages i was only working with my broker and nothing else and made my own trading strategies. I used my AVAFX broker only for trading and didn't search any thing about forex. After coming back to this market i have found this market changed.

[jiv tree]

Thanks for the awesome Blog and system Bigpippin! I am a newbie and have been enjoying trying out your system for the last week.

I have one question if anyone can help: when we are looking to exit a short trade, for instance, do we just look at the RSI and crossover readings after the candle closes? Or do we exit if the RSI is over 50 (or EMAs recross) at any time during the candle?

Thanks again for your great help and ideas!

[phil838]

I have one question if anyone can help: when we are looking to exit a short trade, for instance, do we just look at the RSI and crossover readings after the candle closes? Or do we exit if the RSI is over 50 (or EMAs recross) at any time during the candle?

For exits you usually look for the next price level ending in 00 or 50. For example, if you went short at 1.2083 your exit would be at 1.2050. The exception to this is if the next 00 or 50 is only a few pips away from your entry, in that case you go for the same amount of pips as you're risking.

[jiv tree]

Thanks for your reply Phil.

So are we not concerned about looking at out indicators at all to exit? Does this mean we remain in our trade until either a stop or limit is hit, regardless of RSI, stoch and MACD?

Thanks again.

[jiv tree]

GBP/USD

I have taken a long trade at 11:30 GMT using cowabunga system.

Got in at 15033, stop loss at 14955, target at 15055.

Anyone else taken this trade?

EDIT: I just realised I should't have taken this trade as it is out of the recommended trading hours! I am trading in GMT+10, need to remember to keep an eye on the clock!