This strategy stems from the series that began with the study of the COT report. In the last article:
I said there are a myriad of indicators that can be used for the COT Report.
In this article we will focus on a strategy based on the FIFTH indicator that I showed you in the article I mentioned above.
STRATEGY SETUP
For the strategy I used a TimeFrame daily applied to various underlyings.
Coding is simple:
– If the net percentage change of positions exceeds a certain threshold, I use it as a signal for a trend follow input.
Example:
If ChngInNCNetPctOI (it would be indicator number 5) exceeds a threshold of 5, for example, then I will buy the next bar on the market.
Once the entry criteria have been defined, I focus on the exit criteria. In this case I rely on a time exit after tot bars, different for long and short entries
And finally I add stop loss, take profit and breakeven.
RESULTS
I have used this simple strategy on a number of tools with excellent results. These that I show you are the results of the systems that I have called with the names of: Ferroust and Poli, they are based on this indicator and they are all in my Trading System portfolio that you can also find in my shop.
This is the list of all the systems I have created based on my studies:
I remind you that all these systems I have created have been Out of Sample for many months and therefore for me they have passed the necessary checks to go live.
Here are the results for each system:
Crude Oil
S&P 500
Nasdaq
Gold
Lean Hogs
Soybean
And here are the portfolio results with all systems running:
In 2022, this portfolio would have produced $ 127,000 in profit! Not bad for an indicator that follows the trend of the COT 😉
CONCLUSIONS
This series of articles led us to the conclusion of the Cot Report, we understood what it is, what it does, we studied its indicators and how to use them to make profitable Trading Systems on the market.
If you are interested in buying these strategies do not hesitate to write to me!
See you in the next article!