Cowabunga System Week 11 Results
This week was packed with important news events from both the UK and US, with the most important being the UK interest rate announcement on Thursday.
- Official Bank Rate
- Monetary Policy Summary
- FOMC Member Dudley Speech
- Retail Sales
- UoM Consumer Sentiment
So... did this week turn out to be another profitable one for the Cowabunga System?
Due to the many whipsaws in the GBPUSD, the system suffered its second losing week since the forward test began.
But how big was the loss?
Read on to find out!
The trading week began with a bullish trend on the 4h chart:
Thus, as usual, I waited for a buy signal on the 15m chart.
At 07:00GMT, a buy signal was issued and I went long at 1.4139 with a stop at 1.4116 and the target at the 1.4150 round number.
As you can see, the market did eventually move up to the target profit, but not before it made a swing down and triggered the stop order, leading to a loss of -23 pips... Ouch!
This was not a good start to the week.
On Tuesday, the main trend remained bullish:
A buy signal came at 16:45 GMT and as per the rules I went long at 1.4252 with a stop at 1.4167 and the target at 1.4300.
Thankfully, this one turned out to be a winner, bringing in +22 pips which almost covered the prior loss. Phew!
At this point I was almost halfway through the week, and the system was standing on a net -1 pip loss.
On Wednesday, the trend began to weaken, but it was still technically bullish:
A buy signal came in at 10:15 GMT, and I went long at 1.4237 with a stop and target at 1.4201 and 1.4250 respectively.
The trade turned out to be a winner, booking me a small but welcome +13 pips of profit.
At this time, the system was in profit for the week and things began to look up.
Then at 13:00 GMT, another buy signal was issued. I went long at 1.4242 and set a stop at 1.4214. The target profit was set at 1.4272 according to a 1:1 risk-reward ratio.
This trade was quickly stopped out for -29 pips, and once again the Cowabunga System dipped into the red.
But this was only the beginning of what would turn out to be a bad week...
The main trend turned bearish on Thursday:
Thus, I began looking for a sell signal and sure enough, one came along at 11:15 GMT.
Following the rules, I went short at 1.4150 with a stop at 1.4178 and target at 1.4100.
The trade turned out to be a losing one, resulting in a painful -29 pip loss.
Then a second sell signal came along and I once again went short at 1.4128. This time, the stop and target were set at 1.4178 and 1.4100 respectively.
In the end, the allowable trading time expired, and I was forced to close this trade at a -25 pip loss.
This was one of the worst days of my experience trading with the Cowabunga System.
Hopefully, I thought, tomorrow would see some of these losses being recovered.
On Friday, the bearish trend continued:
The first sell signal came early at 05:45 GMT, and I went short at 1.4148 with a stop at 1.4160 and the target at 1.4100.
As you can see, the stop was almost immediately triggered, leading to a loss of -11 pips.
The losses were beginning to add up.
Soon after that, another sell signal came in at 07:15 GMT. This time, I went short at 1.4140 with a stop at 1.4172 and the target profit at 1.4100.
This time, the GBPUSD threw a curve ball, as it first moved in my favour but then swung back up, triggering my stop for a -32 pip loss. Aye yai yai!
I can't remember the last time I've experienced so many consecutive losses with the Cowabunga System. There was no denying that this was very likely to be a losing week.
But there was still more to come.
At 12.30 GMT, there came yet another sell signal, and once again I followed the rules by going short at 1.4170 with a stop and target at 1..4204 and 1.4150 respectively.
With a final stroke of bad luck, the GBPUSD came within less than 1 pip of the target before swinging back up to trigger the stop loss order for a loss of -30 pips.
If I didn't know better, I'd say the market was toying with me.
This was the single biggest losing day by far, and there couldn't have been a worse way to end the trading week.
Cowabunga System Week 11 Performance
With so many winning days in the past 11 weeks, this week brought my soaring expectations of the Cowabunga System back to reality.
The outcome of this week's trading was a -6.4% capital loss.
My account still stands above $3,000, but it's moving dangerously close to below that level.
What will next week's trading bring?
There's only one way to find out.