Hi there!
I will like to know how you guys judge profit limit when you enter the trade? I had a profit of 10pips but I let it go because i did not know if it was right to take profit ? So I ended 10 pips down cuz i got stopped out.
Looking forward to hear your advice on this. Thank you!
Hi, suggest you read the exit section here:
Thanks for your quick reply. I just saw that thread as well. I just missed the part about âbeing flexibleâ. Cuz the main trend went all the way up and I could have been up 50pips. But I guess this is part of trading so I just have to take it in my stride.
Valid Cowabunga sell in progress.
EP = 1.9967
SL = 2.0017
T1 = 1.9944 (swing based target)
T2 = 1.9909 (61.8% fib retracement)
UPDATE
T1 was hit when prices reached 1.9939. Prices consolidating now - I have moved my stop to breakeven. It is a free trade now and if I can avoid being stopped out, T2 is the next downside objective. If T2 makes a clean break, I will switch to a trailing stop and be looking for 1.9888 as T3 and my final target.
UPDATE
Stopped out at âbreakevenâ. Actually, I placed my stop 2 pips below my entry and wouldnât you know, that is what got hit before continueing down.
This is a money management issue that I need to work on. I need to be more patient with trades, giving them time to play out.
Bottom line, this missed opportunity was a result of fear.
nice one there. I missed it just by a bit because i was out of the house.
Clean break of T2 (like a hot knife through butter) and T3 surpassed.
I want to beat myself up for moving my stop but I have to remember that there will be other trades and more chances to work on my stop management.
NOTE - As I may post more trades in the future, I should let you know that my trade entries are based 100% on the Cowabunga system. However, after entry, my stops/targets/exit/trade management is my own.
Hi:
Read all posts, FAQ, blog still having stupid spasm, please help. BP checks 4 hr candle starting at 12 midnight, determines trend, say itâs long, and stays long all day. Checks 15 min starting at midnight, if 15 min trend is already long, does he wait for crossover to short and then back to long to enter? Sorry for dumb question, thanks for the help
Jim
The object is to determine the trend from the 4 hr chart. If it is up, he only looks for long trades - not âis long all dayâ.
if the 15 minute chart has already crossed (in this case is already showing an uptrend) then you have missed the entry and must wait for it to cross (back down) and then cross again (a new long entry).
Does anyone have an opinion or experience using this system on a different ti me frame. eg, would it work on a daily time frame.
or is there no point
Thanks for clearing that up Pip Daddy. Your previous post said you follow the entry rules to the letter, Iâm trying to do that also. Thanks for your help and to everyone on this great forum.
Jim
Say you are trading the cowabunga. You have a good day so the trade reaches your target. However, we have here three different scenarios of what can happen.
The trade reaches [B]less than 5[/B] pips above the target, then retraces back under it. The rules here are to close the trade as fast as you can, is that correct?
The trade reaches [B]5 pips or more[/B] above the target, but then retraces back under it. What is the rule to do here? I just close half my trade and set the rest on a trailing stop. The really bad thing about this is that sometimes the damn price (like today) move up to make a clean break of the target. But there is no way you can know that. Should you take a chance that it will make a clean break here? Still, about 90 % of the clean breaks occure out of scenarios like this.
Then the final scenario, where the price reaches your target and stay above it for the whole candle session. This is quite unusual, but it seems to be the only way of knowing for sure if the candle will make a clean break or not
Cowabunga relies on trades above 1R to be profitable since the win loss ratio is close to 50%. The exit rules are the least clear. You state them as I believe them to be but it is a fine line between letting the trade go and letting it fail. I agree that it is a rare trade where the candle blasts through the profit target and clearly that makes management easy. I think the best course is to apply the rules as you state them and continually monitor trade performance looking for improvements
Regarding targetsâŚ
I understand Cowabunga is designed to be very simple and straightforward but I never could understand setting a target based on how much you are having to risk or on the next 00 or 50 level. To me, this sounds like wishful thinking.
For those interested in being a bit more precise, I would suggest a little more study of the 15 minute chart to get your targets from. You might want to take these things into consideration when selecting a target -
These would be the most simple to begin with; there are others like swing sizes, etc.
PD
I agree with your general sentiments PD. I would hold that the system provides a reliable entry and better exits can probably be found. Having said that the method as traded is profitable and I would strongly encourage new traders to ensure they can replicate these results before moving on
Hi
Could someone please clarify whether the Forex Economic Calendar is showing the right time in GMT.
On Friday, 4/04/08, the calendar showed NFP report coming out at 12.30pm GMT and not at 13.30GMT as PS indicated in his blog. I think the EST time is also out by one hour.
Thanks, Meza
There are always some difficulties this time of year as countries move or leave daylight saving at different times. NFP came out at 8.30 ET which according to me was 12.30 GMT
pipdaddy, what rsi dose the cowabonga system use, " ema or " sma "?
Hi
Could someone please recommend a good reputable broker that provides a web-based platform. Sorry, if this is not the place for this question, but I have been following the CB system and need a web-based platform to demo trade it.
Thanks, Meza
What is cowabunga system exactly? iâve tried to find out about it but could find any descriptive information about it. Can you explain briefly what it does and how it work?
Well Done! 