Commitments of Traders Report Strategy

Rotondwa

Trader
Jul 22, 2017
1
0
6
27
With the cot report strategy discussed, the pictures I uploaded, one is the screenshot of the cot report showing that i had to buy swiss franc meaning that i sell usdchf but on de screenshot of the market I highlighted the date i had to sell the usdchf but it did the opposite. How to i filter out such fake signals? Please help
 

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Enivid

Administrator
Staff member
Nov 30, 2008
16,999
1,020
144
Odessa
www.earnforex.com
You cannot filter out such fake signals. Trading is probability based activity - you buy and sell when you believe that there is a higher probability for the price going in your direction. It means that the price can (and sometimes will) go against you. Also, considering that the report with February 14 data was released on the trading session close of February 17, the earliest you could trade on it would have been February 20.
 

marcoilcolla

Trader
Feb 8, 2022
4
0
7
32
Hello, could I have explanations about the difference between strategy 4 and 5? I understood that in 4, for long position, both dealer longs and assetman / Inst longs must have positive change, but, in 5, what should I do?
Thanks so much!
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,999
1,020
144
Odessa
www.earnforex.com
Hello, could I have explanations about the difference between strategy 4 and 5? I understood that in 4, for long position, both dealer longs and assetman / Inst longs must have positive change, but, in 5, what should I do?
The strategy #5 checks for the change in percentage of Dealer longs and Asset Managers / Institutionals longs among all longs.
 

Enivid

Administrator
Staff member
Nov 30, 2008
16,999
1,020
144
Odessa
www.earnforex.com
@marcoilcolla You would need 2 reports to check this strategy's conditions because you are looking at how the percentage values changed. But you would need to look at the Percent of Open Interest Represented by Each Category of Trader:
cot.jpg
For example, let's say, the next week the values change like this:
Dealers: 17.0, 24.9, 3.2
Asset Managers: 27.2, 23.7, 3.2
Then, a Buy condition on the strategy #5 is triggered.
 

toibit

Newbie
May 7, 2022
20
1
3
37
Interesting, I didn't know that it was possible to build a trading strategy around the COT report, I like to build a chart with COT data and then apply the support resistance technique on it to better time the market.