Cowabunga system

Beginner Questions
#1

Hi, I have some questions regarding the cowabunga system :
When does your main trend change? Is that immediately when you have a MA crossover or should the RSI and Stoch also give confirmation. In other words you could have a couple of candles where there is no trend because not all the qualifications are there.
If you have a crossover in the main trend (4 H) between 4.00 and 8.00 do you start looking for a crossover in the small trend (15 M) at 8.00? What happens if the 15 m chart has a crossover at 6.00 because if you start looking at 8.00 there wouldn’t be a crossover since you already had one at 6.00. Do you not take the trade?
Does the cowabunga also work with a 1 hour combined with a 1 day chart?

Regards,
Bas

#2

Hi, Pip Surfer designed cowabunga specifically for GBP/USD, using the timeframes he specifies. Changes made to any part of the method, creates a new method and it would be wise to test your amendments.

Here’s a link to Pip Surfer’s notes on the 4hr trend:

So You’ve Finished The School Of Pipsology…Now What? - Pip My System - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

The emas should be crossed, the RSI above 50 for long trades, below 50 for short trades and the stochastics pointing in the right direction too.

HTH and good trading :slight_smile:

#3

Over the last 2 weeks I have been using the system on the eur,gbp.nzd,cad,jpy/usd pairs. Either I am using it wrong or I am just getting lucky. I have 1 loss for 23 pips and 5 wins, sorry don’t know how many pips I could look at my history but I don’t feel like it. Somewere around 100 pips anyway. I look at the 3 hour chart (damn oanda) just to find the trend. If it is not a solid trend then I go somewhere eles. When I find a trend then I goto the 15 min and follow the rules for the 15 min chart. I will also hold a trade overnight. The way I look at it is why close a trade just because it is the end of the day?

To close the trade I will look at the candles, or place a stop 5 or 10 pips below where it is at at the moment. Since I am doing this at work I cannot sit there and watch the trade all day. I’m just a temp and I would really like to get hired in there.

I have noticed that the best times to play this system is between 6:00am and 10:00am est (-5gmt). I watch the market all day but I have noticed that if I am not in a trade by 10:00am then I usually do not get in.

My goal is just 10 pips a day. Or 1% of my account. That does not mean that I get out at 10 pips I just place a stop at 10 pips profit and move it up accourdingly to the way the market is moving.

I have also learned not to “force” a trade. That is my one loss. I really wanted to make a trade that day and I lost.

Today I was looking at USD/CAD on the 15 min chart everything said buy, but the 3 hour chart said it was in a down trend. I stayed out because the 2 did not agree. Since then the pair has gone up 45pips. Am I mad because I did not get in? No, I am glad I did not get in because I followed my system. Just becuase my gut was right this time does not make up for the 10 times my gut was wrong.