Our Futures Trading Results. Week 17 2022

Summary:

  • Our week in the markets using COT Strategy: +$20,000
  • Our week in the markets using Champion COT Strategy: +$15,227
  • Our week in the markets using Weather Analysis: +$0

 

 

The price of the S&P 500 has fallen dramatically. From the beginning of 2022 until today the market declined by almost -14%. Our account on the other hand side increased during the same time period by +11%. At the beginning of 2022 we started into the year with a total capital of about +$1,033,000. Until today we could increase our account size to $1,149,171. That’s a total gain of approximately +11%. In the last week alone we could make a total profit of +$35,227. As one can see our COT strategies don’t correlate with the S&P 500 buy and hold strategy. Trading commodities as we do can be a great complement to a simple S&P buy and hold strategy in these times. You can perfectly see how that works by using our strategies. You can make money at the moment by trading commodities and then you can buy stocks for cheap prices to build up a stock portfolio. As a result trading commodities using our COT strategies is like a side job although it’s not that time intensive. You can build up a positive cash stream that you can use to build up your stock portfolio in the S&P buy and hold strategy. In order to get to know more information about our coaching program please go to our website and contact us. Welcome to InsiderWeek. In this video I’m going to show to you the trades of this week and the corresponding results. Now let’s have a look at our first COT strategy. 

We started into the week with an empty portfolio and at the end of this week our portfolio is empty as well. During the week we had a trade in Cotton. On the weekly chart you can see that we received three consecutive buy signals. We derive our buy and sell signals by analyzing the COT data which is freely available in the web in the commitments of trader’s report which is released once a week. You can also see that the price moves are stronger than the seasonal trend which indicates that this observation is confirming that this market is exposed to relative strength. On the daily chart you can see that we entered the market on Tuesday and we exited the market on Friday. We saw that a correction is going to appear and we wanted to protect our profits by making this trade. We made a total profit of +$20,000.

Now let’s have a look at our champion strategy. This strategy also uses COT signals however the frequency is increased compared to the COT strategy. As you can see we started into the week with an empty portfolio and at the end of this week we also have an empty portfolio. During the week we made one trade and this trade gave us a gain of +$15,227. Here you can see the trade. It has been a trade in Heating Oil. As you can see we use the correction that the market delivered to us to enter this market with our long trade. We exited the trade on Friday. We also exited the trade in the COT strategy on Friday. Let me explain to you why we do that. The markets are currently exposed to geopolitical tenses as you know from the news. And during these times volatility can rise and arrive in the markets and thus gaps may appear on Mondays. We want to avoid holding a position over the weekend. This is also a good tip for you as a trader. There are two strategies to exit the trade in these times. You can either close the position on Thursday evening or right in the morning on Friday. Fridays are most often a correction day so it makes sense to exit the market right in the morning.

Now let’s have a look at our third strategy – the weather trading account. Here we combine fundamental analysis of extreme weather events with the COT data. In this strategy we tend to keep positions in our portfolio for a longer time period – for stocks that means around half a year and for commodities that is like one to two months. In the Cotton market we used the correction to enter it. We are in the market with two long trades and we didn’t exit the market on Friday when the correction appeared because as mentioned before we aim to hold the position for a longer time period. On this slide you can see the areas where the US are exposed to droughts and these areas are areas where Cotton is cropped and thus there’s upwards price pressure on the Cotton price based on our fundamental weather analysis. The next market is Rice. Here we also used the chance to build up a portfolio position. All these markets that we are invested in were announced to our coaching participants in the members area of InsiderWeek a couple of weeks ago. Here you can see that we also opened stock positions in our weather trading account. This is one and this is the other one. Both positions are currently around $0 in the win. 

Now let’s have a look at the CRB index at the end as usual. The index for commodity prices is pointing to the upside. There’s an uptrend and expcect of that observation there’s nothing new to share. As a result we are still more focused on entering long trades compared to entering short trades.

HERE you can find a summary of all individual trades and a comparison of the results of both strategies:

 

 

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That’s it from our side this week. Have a successful trading week!

Max Schulz and
the InsiderWeek team