Our Futures Trading Results. Week 26 2022
Our results of the week
Welcome to InsiderWeek. Great to have you here at our trading report again this week. Before I start to discuss our results I want to warmly invite you to our free webinar which is going to be held on Tuesday the 12th of July. Join us at 6:30 pm London time and get to know our trading opportunities for the month of July. Additionally you can ask all your questions about our trading opportunities as well as our coaching program to Max Schulz who is the founder of InsiderWeek and the inventor of the profitable COT trading strategy. Use the link below this video to register for the webinar on the second Tuesday of the month.
Now let’s get back on track and discuss the trading results for our commodity and futures trading according to COT data for week number 26. In week number 26 we realized the total profit of +$5,541. Let’s have a look at our trading strategies and the trades that we planned for the last week.
First we start with our COT strategy. This strategy combines COT data with other indicators. We started into the week with an open position in sugar, 17 short contracts, with an open accounting profit with above $14,000. During the week we realized part of the profits and we still have nine short contracts. Let’s have a look at the sugar trade in detail. On the weekly chart you can see that there is a resistance level that was supported and accompanied by several sell signals. The price bounced back and went into our direction to the downside. On the daily chart you can see where the price is expected to move to, namely to the price level of 10. On the daily chart we waited for the price reversal to the downside to appear. We waited for our entry pattern and then we made our short trade. One scenario would have been that after falling, the price would rise again and so we decided to realize parts of the profits and as you can see after a new high was built out we put our stop loss there, namely to the high from Thursday. By realizing parts of the profits we made a total profit of +$5,376. We are still in that position with nine short contracts and our target price is at the price level of 17.63.
Our second trading strategy is a so-called champion strategy. In this week we had no new trades. As mentioned in the last trading report videos at the moment it’s summertime and many market participants are in vacation. So the trends that exist are not very stable and thus we reduce the frequency of our trading activity. As seen from the commodity price index many markets are correcting and thus there are not as many good opportunities as in autumn.
Our third trading strategy is based on our fundamental weather analysis. As you can see we only have commodity stocks in our portfolio. We had one position in cocoa but we closed that during the week and thus made a total profit of +$165. On this slide you can see the fundamental reasons for our cocoa trade. You can pause the video and read through these fundamentals. On the daily chart you can see how difficult it is to determine an exact trend reversal point. We took a long position against the daily downtrend because we expected the trend reversal to be persistent. As this is kind of a speculative trade it is important to have a proper risk management and use tight stop-loss ranges. We put our stop-loss at the entry level such that we could be stopped out at break-even. We can see that the weather fundamentals that are underlying the cocoa market are not discounted in the price trend yet so we will keep on the sideline and wait for a right timing. The rest of our portfolio consists of commodity stocks. First we based our commodity stock trades on the idea of the drought phase in the United States and on chlorine tablets. You can have a look at the trading report two weeks ago where we discussed these trades in detail. There are no changes in this week and we still wait for the second quarter reports to appear where we then decide what to do with these commodity stocks. That’s our trading plan.
Now let’s have a look at the CRB index as usual. That’s the commodity price index and as you can see and as we announced a couple of weeks ago the index is following our scenario. After the index has been rising from the beginning of the year onwards we now see a deeper correction. We can see these corrections in multiple commodities at the moment. We expect the commodities to stay in a correction phase for two or three more weeks and after this correction prices could either go to the downside or show us a trend continuation to the upside. In our expectation and based on the fundamentals it is more probable that prices will rise again.Go to our free webinar