Cowabunga System Week 6 Results
The Cowabunga System typically generates an average of 1 trade a day.
This week however, it generated at least 2 trades per day, culminating to 3 trades on Friday. In total, 11 trades were taken this week, which is the largest number of trades taken so far within a week.
But more importantly... was it a profitable week for the Cowabunga System?
Read on to find out!
The week started off with a bullish trend on the 4h chart:
This meant that I was to be looking for a buy signal, and one came at 06:15 GMT.
I went long at 1.4213 with a stop at 1.4196 and the take profit at 1.4250, which lies at the next round number.
As you can see, the stop loss was triggered pretty quickly, resulting in a -16 pip loss on the first trade of the week.
In each of the previous 5 weeks, the first trade had always been a winning one, so this was a new experience for me.
Could this be the first sign of a losing week with the Cowabunga System? I'm not a superstitious man but I can't help but wonder.
Six hours later at 12:00 GMT, another buy signal was issued.
I went long again at 1.4176 with a stop at 1.4134 and the take profit at the 1.4200 round number.
The outcome of this trade was a profit of +24 pips, which recovered the previous loss completely.
I am relieved but at the same time a little disappointed. There's a part of me that wants the sadistic pleasure of seeing the Cowabunga System lose... but objectively speaking, this method has been profitable every week so far.
After hitting the profit target, the GBP/USD rallied another 75 pips which I "missed out" on... but hey, rules are rules. I got out where I should've, and that's all that matters.
The bull trend continued on Tuesday:
A buy signal issued at 07:00, and I went long at 1.4263 with a stop loss and take profit at 1.4238 and 1.4300 respectively.
As you an see, prices did not rally at all after my entry, and the stop loss was triggered quite quickly for a -24 pip loss.
Later at 16:00, yet another buy signal was issued and I went long at 1.4219.
The stop loss and take profit were set at 1.4173 and 1.4250 respectively.
The GBP/USD then began to range and did not make any significant moves for the rest of the day.
According to the system rules, I then closed the trade and incurred a -9 pip loss.
That's 3 losses in 4 trades so far this week.
With the ECB interest rate announcement and press conference coming up in a couple of days, it will be interesting to see if the Cowabunga System can recover from its losses thus far.
On Wednesday, the trend turned bearish on the 4h chart, which meant that I'd now be keeping an eye out for sell signals.
The first sell signal came at 12:45 GMT, and I went short at 1.4217 with a stop at 1.4241 and the target at 1.4200.
As you can see, the target was hit pretty quickly, resulting in +17 pips of profit.
Even with this winning trade, I am still down for the week.
The next sell signal came at 18:45 GMT and I went short at 1.4219.
Unfortunately, the allowable trading period expired and I was forced to close the trade at break even.
Tomorrow, the highly anticipated ECB interest rate decision will be announced which will likely affect the GBP/USD currency pair.
It will be interesting to see how the Cowabunga System performs then!
Thursday started off with a bear trend on the 4h chart:
A sell signal was issued at 07:00 GMT and I went short at 1.4188. The stop loss and take profit were set at 1.4205 and 1.4150 respectively.
Almost immediately following my short entry, the GBP/USD rallied all the way to trigger the stop loss order. That's another -17 pips loss for the week.
This is shaping up to be the first losing week for the Cowabunga System.
You know what they say... be careful what you wish for.
At 11:30 GMT, another sell signal was issued.
I took the short at 1.4205 with a stop at 1.4229 and target at 1.4180.
As it turned out, the ECB decided to cut interest rates across the board and introduced additional measures to further stimulate the Eurozone economy.
As a result, both the EUR and GBP sold off sharply and my profit target was hit for a nice, chunky +24 pips of profit.
With a net -1 pip result so far, I am almost back to break even for the week.
Tomorrow will be the final trading day to determine if this will be the first losing week for the Cowabunga System...
On Friday, the main trend was bullish as the GBP/USD mimicked the Euro surge following the ECB press conference yesterday.
While the ECB had cut interest rates, it also signalled a floor to further cuts in the foreseeable future. Upon hearing this, the Euro shot up across the board, dragging the pound along with it.
The first buy signal came at 06:00 GMT, and I went long at 1.4277 with a stop loss and target at 1.4263 and 1.4300 respectively.
This trade turned out to be yet another loser, netting a -14 pip loss.
At this stage, the Cowabunga System is down -15 pips for the week.
Then at 09:15 GMT, another buy signal was issued.
I went long at 1.4284 with the stop at 1.4254 and target at 1.4300.
Call it a miracle, because this trade was closed for +16 pips, which means that the Cowabunga System is now back into profit for the week!
But then, at 14:15 GMT... ANOTHER buy signal was issued.
Looking at the time, this trade is likely the final one for the week, and has a good chance of determining whether the Cowabunga System remains profitable in its consecutive 6th week of forward testing.
I went long t 1.4310 with the stop at 1.4254 and profit target at 1.4350.
And wow! Look at that!
The target was quickly hit, resulting in an amazing +40 pips of profit, as the Cowabunga System slam dunks its way to yet another profitable week of trading.
It's been a long and tiring week, but the final result shows that it has all been worth it:
This test trading account is now just 60 cents short of $3,000, which means that the Cowabunga System has gained almost 20% in 6 weeks!
In my mind, that's pretty darn amazing.
Next: Week 7 Results