Cowabunga System Week 12 Results
This was another difficult week for the Cowabunga System, as there were plenty of false breakouts and whipsaws in the GBPUSD.
I was honestly a little concerned since last week was a losing one, and I was wondering if this week might follow suit,
Other the the regular news announcements, we'll be seeing the ECB interest rate decision and the press conference afterwards. While no one expects any major interest rate changes, the market expects the ECB to at least remain dovish.
During the press conference, ECB chairman Mario Draghi indeed delivered a dovish statement, but the market reaction surprised everyone. In particular, the EURUSD and GBPUSD rallied 100 pips and 120 pips respectively, before reversing their gains within the next hour.
Such was the volatile trading conditions this week.
So how did the Cowabunga System perform?
Read on to find out!
The first day of the trading week saw the GBPUSD in a bullish trend trend on the 4h chart:
Naturally, I waited for a buy signal... and sure enough, the first one came at 07:45 GMT. As per the rules, I went long at 1.4180 with a stop at 1.4131 and the target at 1.4200.
Fortunately, the profit target was hit, booking a swift +19 pips of profit.
Somehow, a winning first trade always puts in a good mood for the day.
Shortly after, another buy signal was issued at 13:30 GMT.
This time, I went long at 1.4209 with a stop and target at 1.4165 and 1.4250 respectively.
I had my doubts about this one, since the target was quite far away... but the trade turned out to be another winner, this time booking me a mouth-watering +41 pips of profit.
This was a small but significant consolation to the beating the market gave me last week.
With such a good start to this week, I felt like I could just take the rest of the week off... but Jai says I can't so I'll just have to keep going. (Come on, Jai!)
The first signal of the day came at 09:00 GMT and I went long at 1.4320 with a 1.4285 stop and 1.4350 target.
This trade ended up booking me a cool +20 pips profit.
It looks like the Cowabunga System is back in business!
The day began with a continuation of the bullish trend:
The first buy signal came early at 07:15 GMT, and I went long at 1.4369 with a stop at 1.4349 and target at the 1.4400 round number.
As you can see from the chart, the target was eventually hit, but not before the trade got stopped out by a vicious spike down. That spike resulted in an annoying loss of -21 pips.
Another buy signal came at 12:30 GMT, and this time I went long at 1.4399 with a stop and target at 1.4368 and 1.4431 respectively.
As with the previous trade, there was once again a false breakout that knocked this trade out. This time though, it was for a bigger loss of -32 pips.
Upon checking with the charts of other brokers, I found that this was an artificially larger spike than usual. In other words, if I had been trading with another broker's price feed, the stop loss might not have been triggered and this trade would have gone on to reach the profit target.
But since dealing with such incidents are part and parcel of retail trading, I decided to just take this in my stride and continue on. I figured my time is better spent looking for more trading opportunities rather than complaining in vain.
Today was scheduled for the ECB interest rate announcement. In addition, the UK Retail Sales numbers was to be released about 3 hours prior to it, so I was especially interested to see how the Cowabunga System would perform under such conditions.
The trend was still technically bullish, so I kept an eye out for a buy signal:
The first signal came early at 6:00 GMT, and I went long at 1.4343 with a stop at 1.4330 and target at 1.4357.
Surprisingly, the trade turned out to be a winner, and I walked away with a modest +13 pips of profit for the day. Not bad!
On Friday, the Euro was being sold across the board, and it appeared that the GBP would follow along:
With the main trend turning bearish, I began to look for sell trades.
The first signal came at 07:15 GMT and I went short at 1.4335 with a stop and target at 1.4368 and 1.4300 respectively.
The GBPUSD initially moved in my direction, but then swung back up to trigger the stop, knocking the trade out for a -33 pips loss. Oh boy.
With a big swing upwards, the main trend suddenly turned back up again:
With this, I switched my bias and started to once again look for a buy signal.
The last signal of the week was issued at 18:00 GMT, and according to the rules I went long at 1.4399 with a stop at 1.4371 and the target at 1.4427 (1:1 risk reward).
In the end, this trade was closed for +28 pips of profit.
Cowabunga System Week 12 Performance
The week ended with a humble +36 pips of profit, which in my opinion is quite good considering the market conditions.
Now with 3 months worth of forward testing data and thousands of trading decisions having been made according to the Cowabunga System, is it a trading system worth adopting?
Check out our final conclusion at the next page!