COT based system

["Walter Lake" <wlake@xxxxxxxxx>]

Thanks for your emails.

No I hadn't seen that, but this site appears to use indicators based on COT
concepts.

http://www.wizkid-trading.com/Freesamples/services.htm

His service is updated daily so I assume that maybe he uses something like
the CBOT liquidity data for daily analysis. Although, his trades include
non-CBOT markets? This and COT can all be opened in XL for easy analysis and
then indicator development in Metastock.

http://www.cbot.com/mplex/quotes/ldbbs/ldbn-w5.htm

I don't know exactly what he does, but it sounds pretty standard. Here are
some of the highlights.

Best regards

Walter

===============================

"... My system is composed of two different elements.

                   #1 - Fundamental analysis
                   #2 - Technical analysis.


Fundamental analysis is used to select the markets that have a unique
underlying fundamental condition which is either bullish or bearish. Not all
of the markets will have the right fundamental conditions. Most of the time,
the markets are trading in a range and are in-balance.  In other words,
there are no imbalances in supply and demand or any fundamental conditions
which may cause a shift in either supply or demand.  Our system tracks the
supply and demand balance by breaking down the open interest (open
positions) by individual participant and then tracking each participant's
behavior (IMPA).  There are three participants in futures.

#1 - Public
#2 - Funds
#3 - Commercial hedgers

The fundamental portion of the system tracks the relationship between the
three participants, by tracking and performing various statistical studies
on the number of long and short positions held by each of the participants.
Our proprietary fundamental indicators are derived solely from this
information, and not from old prices. This is what makes the system very
unique compared to 95% of all other systems. Statistical studies and surveys
among traders (both small and large) show that 95% of the individual traders
use technical based systems. These systems are all relatively the same, and
are based on indicators which are derived from old prices (such as moving
averages and oscillators). ..."

"... when the conditions are right, we begin using a set of proprietary
technical indicators to time an entry into the market and to calculate our
risk and potential reward. ..."

".. The system also consists of proprietary risk management rules and money
management techniques ..."