Our Futures Trading Results. Week 2 2022
Our results of the week
-$12,845 loss. That's the trading result from our commodity and futures trading according to COT data in week number 2. Welcome to InsiderWeek. In this video I’m going to show to you our trades of this week and the corresponding results.
Let's have a look at our first COT strategy. We started into the week with a portfolio that consisted of one open position, namely 20 long contracts in Soybean Oil. During the week we closed this position and we took another trade in Copper. Let's have a look at the trades individually.
First market: Soybean Oil. We received the buy signal on the weekly chart. We derive our buy and sell signals by analyzing open interest, COT data, seasonal trend and more. On the daily chart we waited for the right timing. Our entry pattern appeared and we were triggered according to the plan. However you can see that shortly after that we were stopped out because the market went into a range. You can see that when we were triggered price actually moved into an impulse wave but shortly after that it corrected and is now in a range and we were stopped out. By that we realized the gain of +$960.
Next market: Copper. In Copper we received a buy signal and you can see that there is a strong support level around 400. We expected that the price will continue its direction to the upside. On the daily chart we waited for our entry pattern and we were triggered and as you can see there was a strong impulse bar. Shortly afterwards however as you can see after this impulse bar there was a strong selloff and we were stopped out with a gain of +$575.
Now let's have a look at our second COT strategy - the so-called champion strategy. As you can see we started into the week with a portfolio that consisted of one open position, namely five long contracts in Platinum. During the week we took two more trades such that our portfolio at the end of this week consists of two open positions, namely four long contracts and Coffee and eleven long contracts in Soybean Oil. By taking the Platinum trade we realized a total loss this week of -$14,380 in the champions strategy. In Platinum as for all metals we received a bullish seasonal trend at the beginning of the year. This was in harmony with COT data so we decided to take a long entry. As you can see we were stopped out because at the moment the markets in the metal sector move in a range. That means that these markets are not of interest to us at the moment. In Coffee we are long four contracts. We were triggered according to our plan but this is a speculative trade. That means that we will keep the position in the market only for a short time, we will use tight stop loss ranges and tight target price ranges. In Soybean Oil we had to wait until the WASDE report was published. As you can see the report was published on Wednesday and usually on these days prices are very volatile. You can see that from that candle bar because price went down and up. We entered this market one day later and at the moment we are in the loss. However we expect price to increase.
Now let's have a look at the CRB index, the index for commodity prices. As you can see last week the price index moved up in a strong way. As we expected last week price continues its path to the upside. Because of that we are positioned in the market more on the bullish side than on the short side.
That’s it from our side this week! See you all at the next trading plan next Sunday!
Max Schulz and
the InsiderWeek team