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Brad Dingee wrote:
> A question for all of you RTers: What value, if any, does COT
> information have in your trading decisions? Commercials' positions
> would seem to be an efficient (although indirect) way of incorporating
>
> fundamentals into your trading, but I personally have had mixed
> results
> using COT signals - it seems they often get me into a trade too soon.
> At the Futures Magazine forum, the Phantom has even suggested that
> fading commercial COT signals is a better strategy. I'd appreciate
> hearing from traders who are successfully using COT data.
>
> Brad
As I mentioned in another message, I've personally not been able to use
COT for timing trades but for indicating sentiment and confirming with
other indicators. I particularly look for situations where the small
traders have opposing sentiment to the commercials, and when the
commercials are at significant highs/lows (such as yearly highs/lows
looking at continous contracts). I know that these ideas are preached
by many but they really seem to help (not alone however). I'm sure that
there are other "patterns" of COT data that others are trading, and
would love to hear what others might be using.
I may have missed some discussions on charting the 3 net longs vs. a COT
index, but am curious to know how those who are using an index are
using it. I like to see the different groups positioning themselves
relative to one another so I haven't gotten into using the COT index
yet. It looks like I need to do some more reading!
Eric
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