Cowabunga System Week 5 Results
Although there had been no official discussions regarding the Brexit issue this week, it was more challenging to trade the GBPUSD as it was the previous week.
In the end though, the Cowabunga System managed to pull off yet another positive result, leading to the fifth straight consecutive profitable week.
Here's the rundown of the trades I took according to the system:
Monday saw a continuation of the 4h bearish trend from the previous week, which led me to keep a lookout for sell signals.
The first signal came at 08:30 GMT, and I went short at 1.3873 with a stop loss at 1.3915 and the take profit according to a 1:1 risk-reward ratio, at 1.3850
The trade turned out to be a winner, booking me a +23 pip profit.
Ten hours later, another short signal popped up. By then, it was rather late into the trading session but it was still a valid signal so I went for it.
At 18:30 GMT, I sold GBPUSD at 1.3905 with a stop loss and profit target at 1.3946 and 1.3863 respectively.
In the end, I had to close the trade for a -14 pip loss as time had run out and I closed the trade according to the system rules.
I was overall still positive on the day, but by now my enthusiasm from the first trade had faded away.
Since today was the last day of February, I was a little concerned that the Non-Farm Employment Change due to be released on Friday would lead to fake move throughout the week.
It'll also be interesting to see how month-end profit taking flows will affect the results of the Cowabunga System.
Tuesday was a slow day as the GBPUSD barely moved.
Thankfully, this pair began to turn bullish on the 4h chart which meant that I could start looking for buy signals.
At 17:15 GMT, a buy signal was issued and I went long at 1.3940 with a stop loss at 1.3904 and take profit at 1.3999, according to the usual 1:1 risk-reward ratio.
The market price missed the profit target by a hair and I had to close the trade at 1.3957, as the allowable trading time had expired.
Well... a small profit is still a profit, and I walked away from this trade with +7 pips.
As long as the account capital is going up, I won't be complaining. :)
Wednesday saw even smaller moves on the GBPUSD, but the Cowabunga System still managed to bring in some pips in a bullish 4h trend.
At 10:45 GMT I got a buy signal and went long at 1.3971. The stop loss and take profit were set at 1.3914 and the next round number respectively.
The profit target was hit rather quickly, bringing in +30 pips of profit. Nice!
This was the only trade for the day.
On Thursday, the 4h trend remained bullish:
A buy signal appeared at 12:30 GMT, and I went long at 1.4089 with the stop loss at 1.4045 and take profit at 1.4100.
The risk-reward ratio for this trade wasn't anything to shout about, but it was nonetheless a valid trade.
Once again, the profit target was hit, and the Cowabunga System booked a nice +12 pips of profit.
This was the only trade of the day.
It's Non-Farm Payroll Friday!
The overall trend remained bullish, but the NFP report could easily set a new course for the GBPUSD in a few minutes.
It will be interesting to see if the Cowabunga System can still perform on NFP day.
The first trade signal of the day was issued at 07:00 GMT, with a long entry at 1.4163.
This trade was quickly closed for a loss of -12 pips.
As the 4h bullish trend remained intact, I continued looking out for another buy signal.
It came at 11:45 GMT, which resulted in yet another losing trade of -24 pips:
This was exactly the type of fake move I was concerned about, but you know what they say: hindsight is always 20/20.
Cowabunga System Week 5 Results
This was an interesting week to trade the Cowabunga System, and is in my opinion the most difficult so far.
That said, I was happy to walk away with a net +23 pips of profit (+0.77% capital gain), which is still just short of the $3,000 mark... that will be my aim for next week!
Next: Week 6 results