Our Futures Trading Results. Week 21 2022
Our results of the week
+$13,278 profits. That’s the trading result from our commodity and futures trading according to COT data in week number 21. With this result we made a new all-time high across all our accounts. Last week we also made a new all-time high. From that you can see: while the stock market has been falling we continued to make profits on our trading accounts. Welcome to InsiderWeek. In this video I’m going to show to you the trades of this week and the corresponding results.
As always let’s start with the first COT strategy. Here we analyze COT data and other indicators where we derive our buy and sell signals. We started into the week with an empty portfolio and at the end of this week we have one open position, namely eight long contracts in Lean Hogs. Let’s have a look at this trade in detail. Our first market is Lean Hogs. Here we received a buy signal in the weekly trend direction. On this chart you can see the triangle that the weekly bars developed. This triangle formation shows that our buy signal is of good quality and because of that we wanted to take a long entry. One can expect that the price will go up and will probably reach the upper boundary around the level of 125. On the daily chart you can see that we caught the right timing. After the trend reversal appeared we entered this market. You can see that the daily uptrend now is available. We have eight long contracts in this market and we wait for our target price to be reached.
Now let’s have a look at our second COT strategy – the so-called champion strategy. This strategy is also based on COT data. However we receive more signals and the strategy comes with 10 entry patterns. If you are eager to get to know more about our strategies and enhance your equity curve in your trading have a look at our website which link you can find below this video. At the website you can find a lot of freely available content like the current COT for each market as well as the seasonal trend and how to use them for your trading. In the champion strategy we started into the week with two open positions, namely long contracts and Rough Rice and Soybeans. At the end of this week we also have long trades in our portfolio, namely in Lean Hogs and also in Rough Rice. In this week this strategy brought us a total profit of +$13,278. Let’s have a look at the trades that we used to make this amount of money. The first market in this strategy is Gasoline. According to the COT data this is a buyer’s market. Thus we used every correction that appeared to enter the energy sector. As you can see in this trade we were long for three full days. On the third day we exited this market and we made a good amount of profit. The next market is Soybeans. This trade has been an open position from the last week. We presented this trade to the members of InsiderWeek, our students, and in the members’ area we told them that and why we wanted to exit this trade on Monday. In the members’ area of InsiderWeek we show to you and release the trading plans each and every Sunday in advance before the trading week starts. If you also want to benefit from our trading plans have a look at our website at insider-week.com. The next market is Lean Hogs. As mentioned before the COT data reveals that it is a buyer’s market and as you can see after the trend reversal appeared on the daily chart we entered the uptrend as you can see on this chart. The next market is Rough Rice. In Rough Rice we have been interested for a while. From our trading history on our website you can see that we had a lot of trades in the past in this market for all our strategies. We expect the price of Rice to increase further more because compared to other grain markets Rice is heavily undervalued. However if you now consider to trade Rice as well you have to be aware that there’s not much liquidity in the Rice market. This means that you have to be aware that slippages can appear in this market. You have to adjust the risk or the position size accordingly.
Our third strategy is the weather trading account. In this strategy we combine COT data with our fundamental extreme weather analysis. This analysis is unique at InsiderWeek. From our experience we know that weather has a fundamental effect on commodity markets. Analyzing weather events helps to select the right markets and identify trends early on. In this week we have three positions in our portfolio, namely one position in Rough Rice and two commodity stocks. We didn’t close any positions in this week and thus our net result amounts to +$0. Our trades in Rough Rice have been a success story. As you can see we traded this market twice in the weekly trend direction to the upside and as you can see these trades were very successful. Both these trades made a total gain of +$7,265. We entered Rice again and as you can see at the moment we are again very well in the win. An event that has to be considered in our weather trading analysis is this year’s hurricane season. On this slide you can see that the number of hurricanes in this year are above the average. The commodity stocks that we selected according to the hurricane season which you can see here are performing very well and as you can see they overcame the highs from April. Compared to the S&P 500 we can see that these two stocks are over-performing the market and because of that there’s relative strength in these stocks. As a result we can see that our weather trading works extremely well, also in our stock selection. We will consider more and more commodity stocks in the future and make more research in this area. We are pleased that our trading ideas work out and that considering weather events helps to select the right assets.
At the end let’s have a look at the CRB index as usual. This is the commodity price index and as you can see that the index overshoots the resistance level from the past. Thus we expect to see further increasing commodity prices. Because of that in the next week we will focus on long trades again.
HERE you can find a summary of all individual trades and a comparison of the results of both strategies:Our track record from 2014 to present
Thank you for your attention and we wish you successful trades for the next trading week.
Max Schulz and
the InsiderWeek team