Cowabunga System Week 2 Results

A relatively volatile week just ended as the markets were spooked by the ongoing fall of the JPY pairs as the Bank of Japan’s announcement of negative interest rates failed to weaken the currency.

Due to these JPY flows, there was significant volatility in the GBPUSD this week.

So how did the Cowabunga System perform this week such conditions?

Read on to find out!​

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Monday​

Monday started in a hurry with the first trade of the week being a short one at 08:45 GMT from 1.4493 as the main trend on the 4h chart was bearish.

cowabunga system week2 mon bearish trend

The closing of the 15min candle was near a round number, and the stop loss and take profit was set based on a 1:1 risk-reward ratio.

This meant that the target profit would set at 53 pips, which was reached ten candles later.

cowabunga system week 2 trade1

A good start to the week with an early Monday win that brought a +2.09% capital gain.

Tuesday​

The second trading day of the week began with the same bearish trend on the 4h chart.

cowabunga system week2 tues bearish

During the first half of the trading day (at 11:45 GMT), a short trade was taken at 1.4422 with a stop at the previous swing’s low. The profit target at 1.4500 was hit pretty fast and another 0.85% has been added to the account.

cowabunga system week 2 trade2

Given the string of consecutive winning trades I've experienced so far, I was expecting the next trade to be a losing one.

But alas, the day ended with no further trade signals but with an important development on the 4h chart: the market turned bullish.

cowabunga system week2 wed bullish trend

Wednesday

Looking for long opportunities was the name of the game on Wednesday, and the day turned out to be pretty interesting since there were some important economic releases out of UK.

Before that though, the third trade of the week came at 05:15 GMT, at 1.4470 with a small stop at 1.44450.

cowabunga system week2 trade3

This was a quick and easy trade as the 1.4500 take profit level came in a jiffy, bringing another 30 pips of profit for the week.

With already more than a hundred pips profit for the week and still with half the trading week ahead, I was feeling pretty good.

As it turned out, there was another trade signal at 09:45 GMT, where another long trade was taken.

cowabunga system week2 trade4

This one was a beauty as market initially moved lower before the UK data release, and then jumped higher erasing the previous move upon the release.

I waited calmly for one candle after the release to close as the Cowabunga System is not about trading into the news.

My entry was at 1.4498 and with a 1:1 risk-reward ratio, the target profit was set at 1.4500.

The outcome of this trade was a +58 pip profit. Things seem to keep getting better.

The 4h bullish trend continued all day with no pullbacks, so there were no other trading opportunities according to the Cowabunga System.

So here I was, after just 3 trading days, sitting on 163 pips of profit. I was pretty psyched up. Will this bullish trend continue?

The answer was 'no' as just before the trading day ended there were clear signs that the trend was about to turn.

Thursday

The bullish trend finally turned on Thursday and that was when I started to look for opportunities to go short.

However, the GBPUSD did not swing on the lower time frame so there was no trade signal. 

Later on, the 4h chart turned again, back into a bullish trend. With such a rapid change in trend, I began to suspect that this pair is starting to range.

Friday​

Friday was a slow day up until the Retail Sales news release in the United States.

Right in the middle of the North American trading session at 17:15 GMT, a long trade signal appeared.

I entered long at 1.4484 and decided to trade conservatively by placing a stop loss at previous low at 1.4443 and the take profit at 1.4500.

cowabunga system week2 trade5

Few candles later, the target was reached making it a perfect end to the trading week. Another +16.5 pips made!

This totals to a +180 pip gain for the week.

My test trading account now stands at $2734.60, with a 7.02% capital gain this week.

cowabunga system week 2 profit

February is starting to get interesting!

Next: Week 3 results​

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