Cowabunga System Week 9 Results
After last week's loss, I was interested to see how the Cowabunga System would perform this week.
Since my account capital is still (slightly) over $3,000, I decided not to lower the trading lot size and to stick with 1.5 mini lots for each trade.
So how did the system perform this week? Read on to find out!
The week started slow as it was the Easter Monday holiday. Trading conditions were expected to be light, and as anticipated the market only started moving in the second half of the London session.
The trend was bullish, so I started looking out for a signal to go long:
The first signal came at 12:15 GMT and I went long at 1.4170 with a stop loss at 1.4158 and target at the 1.4200 round number.
This trade turned out to be the first win of the week, with a nice +30 pips of profit. This win alone covered for half of last week's losses, so at this point I'm feeling pretty optimistic.
The second buy signal came at 18:00 GMT, almost at the end of the allowable trading time. I went long at 1.4249 with the stop and target at 1.4230 and 1.4270 respectively.
In the end, the allowable trading time expired and the trade was closed for a +4 pip profit. That's still a profit, so you won't find me complaining about it!
Today is the day when Janet Yellen was scheduled to speak, and I was a little curious as to what she might say and how the markets would react.
The 4h trend remained bullish, and the first trade signal of the day came early:
At 8:15 GMT, I went long at 1.4234 with a stop loss at 1.4195 and the target at 1.4250.
The target was hit pretty quickly for +16 pips, which pleasantly surprised me. After last week's string of losses, I had almost forgotten how it feels to get 3 consecutive winning trades. And boy, does it feel good. :)
Another buy signal was issued later in the day at 16:00 GMT. I went long at 1.4284 with the stop and target at 1.4260 and 1.4300 respectively.
Nice! This trade got me another +16 pips of profit. That's 4 wins in 4 trades... what a great start to the week!
As it turned out, Janet Yellen surprised everyone by being especially dovish and cutting expectations of the number of rate hikes this year. The markets responded by selling off the USD, causing it to weaken considerably.
The main trend remained bullish on Wednesday, which I found to be a little unusual given that the US Non-Farm Payroll data is to be released in a couple days time.
Regardless, the Cowabunga System tells me to keep looking for buy signals so that's exactly what I did.
The first signal came at 05:00 GMT and I went long at 1.4380 with a stop at 1.4369 and target at 1.4400.
As you can see, the target was hit pretty quickly, booking me a nice +21 pips of profit.
That's 5 wins in 5 consecutive trades. How much further can my luck run?
It didn't take long to find out. The next signal came at 10:45 GMT and I went long at 1.4405 with the stop and target at 1.4378 and 1.4450 respectively.
To my surprise, the market exploded higher, giving the bears a black eye and triggering my limit order for an awesome +45 pips of profit.
My oh my. That's 6 consecutive wins now. Surely, a losing trade must be lurking around the corner! But until then, I'll enjoy my profits and bask in the sunshine for as long as it lasts...
But the day wasn't over! Yet another buy signal was issued at 20.30 GMT, right before the end of the allowable trading period.
According to the rules, I decided to go for the trade and went long at 1.4385 with a stop at 1.4351 ad target at 1.4400.
Alas, my day in the sunshine ended, as the allowable trading time expired and the trade was closed for a -8 pip loss. Nobody likes a loss but after such a positive day I'm still feeling pretty pumped up!
The bullish trend continued into Thursday, and the first buy signall once again came early in the trading session at 7:00 GMT.
I went long at 1.4347 with a stop at 1.4326 and the target at 1.4369 (according to at 1:1 risk-reward ratio).
The target was eventually hit after a surge to the upside, booking me a nice +22 pip profit.
Yet another signal to go long came at 15:15 GMT and I entered at 1.4404 with a stop and the target at 1.4346 and 1.4450 respectively.
In the end, the allowable trading time expired and I had to close the trade for a horrendous -45 pip loss.
Thankfully, I'm still in positive territory for the week.
Today was the release of the US Non-Farm Payroll report, and I expected the GBPUSD to keep in a tight range until the news release... but that wasn't what happened.
Just before the trading day began, the main trend turned bearish:
At 07:30 GMT, at short signal was issued and even though I was apprehensive about this trade (it's NFP day after all), I decided to go ahead with it.
I went short at 1.4332 with a stop at 1.4369 and the target profit at 1.4300.
As you can see, the GBPUSD initially rallied up close to my stop, but then fell back down again to trigger my profit target, booking +32 pips of profit.
The bearish trend was so strong that there was no further entry signals being generated that day.
Cowabunga System Week 9 Performance
This was a spectacular week for the Cowabunga System, with the best performance I've seen so far.
By following the system rules, I booked a total of +132 pips of profit, which generated a +6.47% gain on capital.
I continue to be impressed with the Cowabunga System, as it has proven after 9 weeks to be consistently profitable with low draw downs.