Futures Trading based on COT Report W24-20

by Michael Chechnev | Jun 14, 2020 | Trading week results

Hello Insiders,

Today is Sunday and we traditionally summarize the last trading week and prepare our plan for the next trading week.
This week we closed Natural Gas, British pound and Canadian dollar positions, by the end of the week we came up with long positions in Corn.

Firstly, this is our map of COT-Setups for week 22nd. We work on a similar map for a week.

CANADIAN DOLLAR (closed position), profit $15,480

This long trade was opened on the basis of the setup, which was formed on the 22nd week.

The trade was opened on May 29 through MA18 pattern. The deal was closed on June 10 with a profit of $15,480. There was a peak in seasonality, which coincided with a rollover to a new contract.

We closed the previous contract and tried to buy the Canadian dollar through a new pattern and new entry, but the price didn’t rewrite high and the trade wasn’t opened. Now we see that it was the right decision to enter via the new pattern. The Canadian dollar has gone for a correction.

On the daily chart, we can see that in April there was an unsuccessful trade in the Canadian dollar, since we were in a correction. But now we have made good money here.

COT report shows that the COT index isn’t discharged. This means that there is a chance of continued upward movement. We need to understand how the price will go MA52. Now it has bounced off this moving average.

We plan to wait a bit before re-entering the deal. We must first understand whether the price will go according to seasonality and how MA52 will be covered.

BRITISH POUND (closed position), profit $2,281

In this futures situation is similar to the Canadian dollar.

The setup was formed at week 22. The deal opened on June 2. Here we rollovered to a new contract via the market price, since here is a different picture of the seasonal movement. As a result, the position was closed by stop loss.
The profit of June contract is $7,593.
The loss of the new contract is $5,312.
The total profit of this trade is $2,281.

We see that there are opportunities for re-opening a long position and we plan to use it on Tuesday. Because on Monday we need to get confirmation of the end of the correction.
That is, we will buy the first pullback on the British pound.

NATURAL GAS (closed position), profit $4,500

There is a good downward trend. The COT index hasn’t yet been discharged. Also, the seasonal factor contributes to a further fall.
We think that there will be additional opportunities for opening a short position.

About our trade. This is the second trade based on Natural Gas setup from 20 week. The duration of this trade was 2 days. The profit was $4,500 on PRO account. We earned $300 on Small account here.

So, we are waiting for kickbacks and try to open a short position via correction deal with a low level of risk.

CORN (open position)

This is our open position. SetUp to buy for Corn was published in the weekly trading plan W18. The deal was opened on June 4 via pattern Inside Day.
We have 15 open contracts on the PRO account and 1 on small account. Here we are no obstacles to further growth.

Commercials gained a long position (blue box on weekly chart). And this long position of them is growing along with the price.
The momentum is bullish, the accumulation is bullish, there is the formation of a new trend by ADX. Corn position is kept.


Last week was corrective. After analyzing the new COT reports, we should have an understanding of the further movement of CRB index. Based on this information, we will plan next week’s trades.

To sum up the trading week:
Canadian dollar, profit $15,480
Natural Gas, profit $4,500
British Pound, profit $2,281
Total profit $22,261.

That’s all about our trading in this week.
Next, we are moving to planning trading week 25.

These detailed trading plans are published for members in our Insider Week community. Join us now!

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