Futures Trading based on COT Report W32-20

by Michael Chechnev | Aug 9, 2020 | Trading week results

Hello Everyone,

we traditionally summarize the last trading week and prepare our plan for the next trading week.

We got out of a drawdown!
After several unsuccessful trades in the Dollar Index, Coffee, Corn and the New Zealand Dollar, our account was in the drawdown.
All trades, both profitable and unprofitable, can be found here.

This week we managed to catch a trend, make good profit in cocoa and get out of the drawdown. Two more deals were also opened. They will be described below.

It took three weeks to get out of the 8% drawdown. Such a short period was explained by the fact that measures were taken in risk management.

Let’s take a closer look at all the deals.

We are approaching the exit from a drawdown. Let’s see what week 31 was in trading.

COCOA (closed/open position), profit $36,400

SetUp to buy for Cocoa was published in the weekly trading plan W29. The position was opened on July 27 according to MA18 pattern. Part of the position was closed with a profit of $22,600 and yesterday a rollover was made to the December contract. The profit during the rollover was $13,800.
Now 5 contracts remain open. We move the stop loss along the 3-bar system. The total profit for the trade at the moment is $36,400.

Cocoa has a very good upward movement right now. The COT index has not yet run out. This tells us that there is a chance that the price will approach the heights of the beginning of this year.

There is also bullish accumulation and bullish momentum. Confused only by the seasonality, which is heading down and the supply and demand indicator. It dropped by the end of the week, but this may be due to the rollover to a new contract.

Let’s see what happens on Monday and Tuesday.

It is also important that with such a movement there has not yet been a correction to MA18. If there is a correction, we plan to open a position in cocoa again.

SOYBEANS (open position)

SetUp to sell for Soybeans was published in the weekly trading plan W29. The position was opened this Friday. We keep this position. Accumulation and momentum are bearish. The downward movement is supported by seasonality. Stop loss is placed above August, 3 plus 1 tick.

SOYBEAN MEAL (open position)

A position in Soybean Meal was also opened. These are instruments of the same sector and they are correlated with each other, so the risk was divided. Interestingly, the soybean meal always decreases more slowly.

Let’s see how the situation will develop this time. Let’s assume that next week we will close one thing in the portfolio.

This is bearish accumulation, but the momentum is not very pleasant – it bends up. We will make a decision on the strategy here on Monday – Tuesday, including on the basis of the latest COT report.


CRB is growing. The momentum here is also bullish. Next week’s deals also look long.

We enter trading week 33 with the profit of 34,600 in cocoa and the following open positions:

That’s all about our trading in this week.
Next, we are moving to planning trading week 33.

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

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Risk Disclosure: Trading in futures, forex and CFD's involves a high degree of risk and is not suitable for every investor. An investor may possibly lose more than the capital deposited. Only risk capital should be used for trading, or parts of risk capital. Risk capital is money, the loss of which does not change the financial situation or does not affect life. Performance achieved in the past is not a guarantee of future profits.

Hypothetical Performance Disclosure: Hypothetical performance results have many inherent limitations, some of which are described below. The account results presented may vary significantly in gains and losses. One of the limitations of hypothetical results is that they are generated by known historical data. In addition, hypothetical trading does not involve financial risk - no hypothetical track record can represent the financial risks of actual trading. For example, there is a possibility that trading will be suspended or cancelled if losses are incurred, this can greatly change the actual results. Furthermore, there are numerous other factors that cannot be fully accounted for in hypothetical performance when implementing a trading program, and thus can affect actual results.

Testimonials appearing on this website are not representative of other clients and are not a guarantee of future performance or success.