Cowabunga System Week 10 Results
This week, a few high impact economic data were scheduled to be released:
- Construction PMI
- Services PMI
- Manufacturing Production
- ISM Non-Manufacturing PMI
- FOMC Meeting Minutes
- Unemployment Claims
- Fed Chair Janet Yellen Speech
Historically, most of these releases have moved the GBPUSD significantly, so it'll be interesting to see how the Cowabunga System performs this week.
The GBPUSD picked up where it left off last Friday, with a continuation of the bearish 4h trend:
The trend remained strong in the early part of the day, resulting in no pullbacks and no trade signal.
It was only at 15:20 GMT when the first signal was issued, and I went short at 1.4276 with a stop at 1.4322 and the target at the next round number, at 1.4250.
Due to a continuation of the strong bearish trend, this trade was closed quickly for a profit of +14 pips, which is always a nice way to start the week.
The trend remained strong for the rest of the day, resulting in no further sell signals.
The GBPUSD began the day flat, but soon resumed moving in the direction of the downtrend.
Once again, the move was so strong that there was no opportunity to sell due to the lack of pullbacks.
During the New York session though, the pair reversed and moved sharply back up, erasing most of the prior bearish move earlier that day.
So far, there had been no surprises to the PMI releases but I noticed that the GBPUSD was moving strangely.
On Wednesday, the main trend continued to be bearish:
This meant that I should be looking for a sell signal, and sure enough the first one came along at 05:20 GMT.
I went short at 1.4156 with a stop and target at 1.4170 and 1.4143 respectively. Since the entry for this trade was located near a round number, I set the target profit according to the usual 1:1 risk-reward ratio.
As you can see, the trade came in relatively quickly, booking me a profit of +14 pips.
That's not a lot (compared to what I'm used to with this system), but hey.. a profit is a profit!
There were no other trade signals that day.
The main bearish trend continued into Thursday:
The first sell signal came early at 07:00 GMT, and I went short at 1.4115 with a stop at 1.4154 and the target at 1.4100.
Immediately upon the next candle, the target was hit for nice profit of +15 pips.
The gains this week have so far been small, but they have at least been consistent!
Another sell signal came later that day, at 13:20 GMT. I went short at 1.4074 with the stop and target at 1.4117 and 1.4050 respectively.
This was a rocky trade, and the stop loss was almost triggered at one point. Thankfully however, the downtrend somewhat resumed and closed it for a +24 pip profit.
Thus far, we've seen 4 wins in 4 trades... and I'm crossing my fingers to see if I can get a 100% win rate at the end of the week.
To my surprise, the downtrend continued well into Friday.
Usually, when prices trend strongly for 4 consecutive days, we'd see a strong pullback on Friday as traders cover their profitable positions before the weekend.
As it turns out, this was not a usual week for the GBPUSD.
At 06:30 GMT, a sell signal was issued and I went short at 1.4062 with a stop loss at 1.4079 and the target at the 1.4050 round number.
This was certainly a lucky week for me, as my target was hit for +12 pips before the market surged up way past my stop loss.
And that was it for the week, with no other trade signals being issued.
So that's 5 wins in 5 trades. A 100% winning rate for the week.
Cowabunga System Week 10 Performance
The week ended with a net profit of +78 pips which translates to a capital gain of 3.62%.
I'm frankly impressed with this system as, after 10 weeks, it has remained consistently profitable (with only 1 losing week) in spite of all the fundamental news encountered along the way.
Keep in mind that we have been through 2 Non-Farm Payroll releases and a handful of speeches by central bank representatives.
At this point, I am beginning to trust the Cowabunga System and I look forward to seeing its results next week.