The Cowabunga System

I’ve posted on the MQ4 cowabunga forum, but might as well ask here too. Can anybody define a clear set of rules for setting the trend off the 4Hrly chart ? With the 5/10 EMA cross, we are ALWAYS either in an uptrend or downtrend. If we also consider RSI(14) and Stochs there are times we are not in a trend at all - we have conflicting signals. It seems from the blogs that we are always in a trend - I have never seen a blog stating ‘today there was no trend so I didn’t trade’. However, maybe I’ve missed something.

I have altered the latest MQ indicator to include stoch crosses on 15min as it was missing a few signals reported on the blog, it should now catch them all. I’ve altered the 4HR trend condition to just EMA crosses but would like to know whether this is right, or what I need to do to make it right.

If ybop01 and Pipalot (the authors) don’t mind I can repost my updated version.

Jeff

I read your comment on the Monday Blog. Nice trade! I too got that signal, and did exactly the same as you regarding initially going for the same amount of pips, then deciding that I was probably meant to target the round number for less pips. I set this as a hard TP as I couldn’t watch the trade, but well done in sneaking the extra few pips on the other half lot.

The signal from the indicator comes early doesn’t it. I hadn’t realised this. Its good as you have time to see if the trade develops into a valid one or not.

Yes. You also get some fakeout signals too, if during the bar there is a momentary crossover, but by the close of the bar price has retraced to a point where there is no crossover.

I got a signal like that in the 5:45 GMT bar. Just a few minutes into that bar, while price was down near 2.0723, the 5ema was below the 10ema, and stochs, MACD, and RSI were all in line. I got the signal then. But by the close of that bar, price was back up to 2.0729, with the EMAs were NOT crossed. The next bar closed with the 5ema still 1 pip higher than the 10ema, the next two bars closed with the 5 and the 10 equal, and it was the 6:45 bar before the 5ema closed below the 10ema. And of course by then, MACD was already negative, and RSI was already below 50. Having gotten in at the signal would have been a loser.

I’ve gotten into several immediately on the signal, when they turned out to be false signals by the close of the bar. Sometimes you do that a few times before you learn!

I really like having the advance warning. It’s nice to have a few minutes before the close of the bar to look at the chart and see what’s been going on if you’ve been away for a while when the signal comes.

One way to take part and let part ride, if the target is in the 15-20 pip range, is if you open with 1 lot, then set TWO pending orders: One pending order for half a lot with a regular S/L and a T/P, in this case 2.0647 for the S/L, and 2.0700 for the T/P. For the other pending order, just set a trailing stop on the other half lot for a trail of about 15 pips.

Worst case, you get stopped out of the second half, if price goes in your favor a little bit, then turns against you a little bit before ultimately hitting the target. This is more likely with larger targets. So if I have a target much over 20 pips and I can’t be here, I’ll just set a T/P for the whole thing. And in that case, if I can’t logically set a target at least equal to the S/L, and if I can’t be here, then I’ll stay out of that trade because I don’t like to get in trades where I need to risk 37 pips but only have a 17 pip profit possibility. That’s just me.

With EFX, you can set part of your position with a normal S/L and a T/P, and set the other part of the position with an order that allows the full 37 pip S/L until the target is hit, and THEN turns it into a trail of whatever size you set. A NIFTY little feature!

I also don’t like to set a 10 pip stop, because too often that’s not enough wiggle room. That’s because I’ve gotten 60 or 70 from a 100 pip movement by allowing 15 pips of wiggle room on the way up. If I set only 10 pips trail, I’ve frequently gotten only 20 or so out of a 100 pip trend, just because it needed room to retrace 12-14 pips before continuing upward. No perfect formula here, it’s just a matter of preference and feel.

Jeff

hi i’m new i read some of the stuff on fx school i did lose some money like 5geez
anyway where can i get the Cowabunga System not the indicater

Look on the main page or under blogs

I am releasing the new and improved Cowabunga EA v5 for MetaTrader, (started by Kepler). It now works a lot better!
My notes and the EA are at the thread, ‘[WIP] Cowabunga MT4 Expert Advisor’.

Big Be

Younes,
As a newbie to fx trading,you need a very simple and easy to set up technical indicators for a demo/live trading. I would recommend James System for you:How to Make 45 pips Daily on EUR/USD. I have tried this system on demo/live trading ,its accuracy is over 80%,and it is very simple to set up and use.
Prince

Prince, if you are quoting your own win rate, over how many trades is the 80% calculated? Also, what are your average winning and losing trades? I am about to forward test this one myself and would appreciate your input as someone who has been there, done that…

Thanks
Simon

wellyou see i already have a live acc so i’m trying to find ways to cover my losses in that one first :), itss just i don’t seem to know whent to enter the market and my support and riseistance lines get broken all the time plus the i lost in the XAG/USD.

Yes me too. I have never got this sort of return from this method even on testing so would love to know how you have done it prince

Out of 20 live trades,I win 17,lost3,lowest pips is 25,while the highest is 61 pips.
Thank You.
Prince

Simon - if you do test this I will be interested in the results. Certainly I got a positive expectancy but nothing like an 80% win rate

Thanks for the info, Prince. The sample size (20 trades) is probably too small to make a generalisation from in terms of win rate, but what you are doing works for you. :cool:

I’ll keep you posted.

Well, if the indicator is working right, its been a slow end to the week. I didn’t get a signal today (Friday), and had one yesterday (Sell) but it was at 19:00 GMT which makes it a bit late in the day so I didn’t take it. The official blog hasn’t been updated yet but did anyone get anything different ?

Also I’ve tested the indicator on GBP/JPY with default settings. I’ve altered it to only allow trades from 5am GMT. I traded it ‘blind’ by scrolling the chart one bar at a time. I tend to aim for between 1 and 2 times risk:reward and even numbers/.50’s as targets, same as cowabunga GBP/USD.

From the 29th Oct to 29th Nov I had 33 signals. 4 signals were after 7pm so I didn’t take them. 13 trades lost. 15 trades won and 1 trade was breakeven. Maximum losing trades in a row was 2. If stoploss was greater than 130 I used half lots. The system produced 384 (Full) Pips in the month.

Interestingly it was 361 pips up after the first 6 trades. The following 3 weeks saw it fluctuate. However, thats just trading for you!

I got three signals yesterday, but one was before and the other two were after the time we are supposed to trade this system. None today for me. But even BabyPips training classes say to stay out of the market on Friday afternoons anyway, so I didn’t sweat it.

I’ve never looked at Cowabunga on GBP/JPY, but I have on AUD/USD and the success rates I’ve had trading it are not near that good unfortunately. Doesn’t mean it’s totally no good, but I like the fact that it seems that about 75% of my Cowabunga trades have gone in my favor.

Jeff

is anyone using this system on the daily charts or has anyone tested it?

I’m not sure about the dailies for this system. The risk:reward usually isn’t great. We’d have to come up with a different way of setting targets.

Today I had a buy signal which was a loser. Can’t win em all. However, GBP/JPY cowabunga gave me a short for plenty of pips.

Looks like a lot of action on the Cowabunga strat tonight


:slight_smile:

Hello Folks, i’m new here and i would really like to know much about this cawabunga system.

Can someone please put me through the necessary files or articles for this system.

Hope to hear from you all soon enough

Regards

Tolu:):cool: