The Cowabunga System

[tonymand]

Originally Posted by stef

Are they simple or exponential?Why they give us different values and different crosses than the original 4hour graph?
sorry for my questions because i'm confused with
thanks

Not sure what you mean by different crosses. There may occasionally be slight differences because of the different closing times. I prefer to have it all on one graph but there is nothing to stop you having the 4H chart open with the MAs on them. The only time it will make a difference is at the time of the 5/10 cross on the 4H since this is based on the candle close. I dont trade the Cowabunga but follow it closely and havent noticed any significant differences from PS results. As cowaboi said in his post there is now a cross down occurring and so shorts are on. If I was trading this I would stay out as the market is so choppy but that isnt part of the system

[stef]

to Tony,
I mean that i have different crosses in 4H with the 5 and 10 EMA's than the 15M with the 80 and 160 EMA's.Which is valid?
thanks

[tonymand]

The difference is 30 mins, see attached charts. PS uses the separate 4H but as I have already explained I have neve known it to make a difference though one day it surely will

[linalm]

Originally Posted by Cowaboi

I use multiple lots, setting sl and tp orders upon entry. Some profit is locked in at the target (as per PipSurfer's rules) and unless there's a 'clean break' of the target (price closing above/below target), the rest will be taken off. If price breaks and closes beyond the target, the rules state moving the target to the next 00 or 50 level (whichever is closest).

I will also use fib extensions for targets occasionally.

Thanks, Cowaboi. If you enter take-profit orders at the time your trade is executed, how can you move the target to a new level when your 1st target is hit? ... Isn't your trade automatically closed once your first target is hit? ... Or is it that your take-profit order is placed to a level that is far away from your real target? If so, what are your rules for this?

Thanks in advance.

[Cowaboi]

...around the cowabunga rules, I'm looking into how the method interacts with fibs and their extensions, defined by the high/low range just before cowabunga entries. Today might be a typical example, although this latest nudge up is less than convincing and I may yet have to redraw from a lower low, before the next short entry arrives.

I trade cowabunga through Oanda and their first extension is 61.8, i'd prefer to set an initial target of the 38.2

Daedalus' fib thread is an excellent read and is full of useful trade management tips as well as a well honed fib trading strat...well worth a read if you haven't been there yet.

[tonymand]

Originally Posted by Cowaboi

...around the cowabunga rules, I'm looking into how the method interacts with fibs and their extensions, defined by the high/low range just before cowabunga entries. Today might be a typical example, although this latest nudge up is less than convincing and I may yet have to redraw from a lower low, before the next short entry arrives.

I trade cowabunga through Oanda and their first extension is 61.8, i'd prefer to set an initial target of the 38.2

Daedalus' fib thread is an excellent read and is full of useful trade management tips as well as a well honed fib trading strat...well worth a read if you haven't been there yet.

Two other things that thread followers might like to think about. There is a delay in the 4H turning so one of the weaknesses is that for awhile the Cowabunga tracks the 15 min in the wrong direction. I have been looking at peaks and troughs on the 15 min to change trade direction earlier than the actual 4H cross. Secondly there are many losses at times like this when the market is choppy so considering staying out for a while is also worth a thought

[Cowaboi]

Originally Posted by linalm

Thanks, Cowaboi. If you enter take-profit orders at the time your trade is executed, how can you move the target to a new level when your 1st target is hit? ... Isn't your trade automatically closed once your first target is hit? ... Or is it that your take-profit order is placed to a level that is far away from your real target? If so, what are your rules for this?

Thanks in advance.

I have been using multiple orders, but with two orders as an example, the 1st lot would have a closing order attached to be taken off at the target or initial stoploss level. The 2nd order would just have the initial stoploss order and once price reaches target I watch for a clean break. If there is one, the stop of this lot is moved up to the target.

Having said this, I tend to agree with Daedalus' sentiments (in his thread) and will be moving to an all in, all out approach for a while to see how it compares.

[Cowaboi]

Originally Posted by tonymand

Two other things that thread followers might like to think about. There is a delay in the 4H turning so one of the weaknesses is that for awhile the Cowabunga tracks the 15 min in the wrong direction. I have been looking at peaks and troughs on the 15 min to change trade direction earlier than the actual 4H cross. Secondly there are many losses at times like this when the market is choppy so considering staying out for a while is also worth a thought

Agreed. If in doubt, stay out.

[hypnos63]

hi, can someone help me by telling me what 'indicator displacement' on the cowabunga indicator refers to? if you click on 'inputs' in the indeicator, you will find 'indicator displacement' there, along with a set of true/false values. what does indicator displacement 'refer to? and how can i use it?

i notice that 'pip my system' blog neither answers my questions or posts my comments which really are just questions. can anyone here please help me?

[Cowaboi]

I trade manually so can't help directly. The Cowabunga MT4 thread might be worth a shot, if you haven't already posted there.