Our Futures Trading Results. Week 6 2022
Our results of the week
+ 8.288 $
+ 22.463 $
± 0,00 $
+$8,288 profits. That's the trading result from our commodity and futures trading according to COT data in week number six. Welcome to InsiderWeek. In this video I’m going to show to you our trades of this week and the corresponding results. As always let's have a look at the portfolio at the beginning of the week for the COT strategy number one. We started into the week with 35 short contracts in Mexican Peso where we were in the loss with $7,000. At the end of this week our portfolio consists of two open positions, namely ten long contracts in Feeder Cattle and seven long contracts in Coffee. In Coffee we are in the win with more than $24,000. Let's have a look at the trades individually.
First market: Mexican Peso. As you can see we received a sell signal to the downside. We are currently in a range market in Mexican Peso and we expected that the price is going to touch the lower range of the sideways market. On the daily chart we waited for the price to show a trend reversal to the downside. This happened, we entered the market, and then price went into a correction. We were stopped out with a loss of -$14,175. However we can see that at the end of last week volatility in this market was very high. Mexican Peso is correlated with the S&P500 and thus the decisions about interest rates are affecting the market. Once this market turns around to the downside and shows us a real trend reversal the market becomes interesting again. But for now in Mexican Peso we stay on the sideline.
Next market: Coffee. On the weekly chart of Coffee we can see that we received a buy signal in the weekly trend direction and we like those kind of signals. On this slide we can see that the market broke out from a triangle and that's a very bullish sign. On the daily chart we can see that we were triggered according to our plan. The price went into the direction that we expected - in the direction of the COT signal to the upside. On Thursday and Friday price went into a small correction however we expect to see further increasing prices and we want to keep our position in the market.
Next market: Feeder Cattle. As you can see in this market we received a buy signal in the weekly trend direction. From this slide we can see that there is a strong resistance level. In the near future we will see whether price will break through this resistance level to the upside. On the daily chart you can see that we were triggered according to our plan. Price moved into our direction and then it went into a correction and we expect that our stop loss won't be reached and that we will see further increasing prices in the next week.
Now let us have a look at our second COT strategy - the so-called champion strategy. As you can see we started into the week with an empty portfolio. At the end of this week we are left with two open positions which are 16 long contracts in Cotton and one long contract in Heating Oil. In the champion strategy this week we made a total profit of +$22,463. Let us have a look at the trades that produced that result.
In Feeder Cattle we were stopped out with a small win. We adjusted our stop loss to protect us from losing money.
Next market: Coffee. We exited this market on last Friday. We did that to protect our accounting profit as we saw that price went into a correction. On Thursday we closed the position on the close of Friday.
Next market: Heating Oil. As you can see we used the correction to enter the market. We are now seeing a strong Friday and thus we expect our target price to be reached.
And the last market is Cotton. In Cotton we can see that the market doesn't behave as expected. The price doesn't move according to our plan. It should go to the upside but it is very much in a sideways range. We put our stop loss close such that we don't lose too much money. At the moment we can see that the closing price from Friday is close to our stop loss. At the moment it looks like we could get stopped out very soon. If that happens, well, then we haven't lost too much money. If the price instead turns around and moves to the upside we could stay in the market.
Finally let's have a look at CRB index as usual. Like in the weeks before we can see a higher high and a higher low and that means we stay bullish in our attitude and try to get more long trades than short trades in our portfolio.
That’s it from our side this week! See you all at the next trading plan next Sunday!
Max Schulz and
the InsiderWeek team