Our Futures Trading Results. Week 40 2021

Summary:

  • Our week in the markets using COT Strategy: +$17,074
  • Our week in the markets using Champion COT Strategy: +$7,359

 

 

+$24,433 profits. That’s the trading result from our commodity and futures trading according to COT data in week number 40. Welcome to InsiderWeek, my name is max schultz and in this video I’m going to show to you our trades of this week and the corresponding results. Before we start with our trading results let me announce to you that we have a free webinar on October, 20. You are all very welcome to join. In the webinar Max Schulz shows to you how to build a great trading strategy using several simple trading rules, he will answer all your remaining questions, and show you the path that he took. Additionally in the webinar he will announce a discount on the coaching program that you could benefit from. You can find the link to the webinar on October, 20th on our webpage. You can click on register and then fill in your information such that you can join our webinar. This is your chance to ask all your questions directly to Max Schulz. Now let’s come back to the trading results of this week. We started into the week with a portfolio that consisted of two open positions, namely two long contracts in Coffee and ten long contracts in Wheat. At the end of this week we are left with two open positions, namely this time one long contract in Coffee and eleven long contracts in Soybean Oil where we are well in the win. Let’s have a look at the trades one by one.

First market: Wheat. We always look at the weekly chart where we derive our buy and sell signals from COT data, from seasonal trend, and from open interest. In the Wheat market we received a buy signal four weeks ago. On the daily chart we were waiting for the right timing. We were triggered according to our entry pattern, the price moved into our direction, and we closed our position shortly before the market closed on Thursday. By doing this trade we realized a total gain +$7,375. 

Next trade: Coffee. As you can see we didn’t receive a buy signal on the weekly chart. Nevertheless we have techniques where we can trade markets although the COT signals are quite weak. Coffee is such a market and we went long in this market. On the daily chart you can see that we waited for the right timing. We were triggered according to the plan on the first time and after the price went up into our direction price soon came back. After we adjusted our stop loss we were nevertheless stopped out with a loss of -$2,062. The setup is still active and still bullish and because of that we decided to enter this market again with one long contract.

Next market: Natural Gas. As you can see in Natural Gas we had a strong uptrend. We received a buy signal in the weekly trend direction and we can see that seasonal trend looks bullish as well. On the daily chart you can see that we decided to trade this market long at the entry point. We decided to stay in the market for two trading days and as you can see that decision was a very good decision. After we realized our gain of +$3,230 the price suddenly came back down. However this is just a small correction and the setup is still bullish. Because of that we are waiting for Natural Gas to show a new trading opportunity and once our entry pattern appears we are taking a long trade in this market again.

Next market: 10-Year T-Notes. In this market we are very satisfied with our entry however not that satisfied with our exit as we will see in a second. On the weekly chart we received a sell signal and according to the COT data we decided to trade this market short. On the daily chart we were satisfied with our entry, however as you can see, after we exited this market we saw lower prices. Because last week we had a couple of positions that were very well in the win, we had to close the position in the 10-Year T-Notes due to portfolio reasons. By doing that we realized a total gain of +$8,531 in this market. The bearish setup is still active and if we’re seeing a new possibility to enter this market we will take a short trade again.

Next market. Soybean Oil. Here we received a lot of buy signals which speaks in favour for a strong support level. We can also see that seasonal trend is marginally increasing which is a good sign for our buy signal. On the daily chart you can see that our entry pattern appeared and we were triggered according to our plan. Price moved into our direction in a very good way. On Friday we saw a sell-day, however that’s not unusual for Fridays because many traders are taking profits on this day. For the next week we expect this market to continue its direction to the upside such that we will reach our target price.

Now let’s have a look at our second strategy – the so-called champion strategy. We started into the week with a portfolio that consisted of two open positions, namely nine long contracts in Sugar and eight long contracts in Wheat where we were very well in the win. At the end of this week our portfolio consists of two open positions, namely six long contracts in Australian Dollar and three long contracts in Soybean Oil. 

The trade that didn’t work that well was Coffee. After we had a great win before we entered this market again and as you can see the direction was correct but the timing was not the right one. We were stopped out here and then price moved up again. We will observe this market further because the setup is still active.

Another market was Sugar. As you can see the market didn’t decide for a direction yet. We entered this market according to our entry pattern and afterwards the price went up, then it went down again, then it went up, and as you can see we closed this position because the price still moves in a range and we don’t want to trade markets that haven’t decided for a clear direction yet. By closing this trade we made approximately $0.

The next trading opportunity was in Wheat. The trade was very successful, we were triggered at the right timing, and we closed the position and took profits at the right point in time as well. After we realized our profits the market went into a correction and as it is a correction this market stays interesting to us for further long trades. 

Next trade: Australian Dollar. This was a speculative trade and we see that price doesn’t move as fast in our direction as we would like to see it. From this observation we can derive that we didn’t catch the right timing. Because if we catch the right timing price quickly moves into our direction just after we were triggered. As a result next week we want to close this position quite quickly.

Next market: Soybean Oil. We were triggered in this market according to our plan. This entry may look late however we received our entry pattern, we have a fresh new buy signal in this market, we see great impulse waves to the upside, and because of that we took this trade. We expect the correction on Friday to be just a correction and we expect to see further and higher prices in the next trading week.

The total gain of our champion strategy this week is +$7,359. That means this week we reached a new all-time high in the strategy. We are very proud and satisfied to see that the strategy works out very well, specifically it made a return of approximately +300 percent in less than a year. This is an absolutely stunning result and we are very satisfied with our decision that we made to diversify our portfolio by adding this champion strategy.

A few words on CRB index as usual. Again we see higher commodity prices this week. In the last video I explained why it is so important to consider CRB index for your trading decisions. If CRB index shows higher prices it is wise to take long positions in commodities. Of course you can also profit from short positions however long trades are much easier. By taking primarily long trades last week we could achieve a great trading result.

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. We wish you all many successful trades.

Max Schulz and
the InsiderWeek team