Futures Trading based on COT Report W40-20

by Michael Chechnev | Oct 4, 2020 | Trading week results

Hello Everyone,

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

We started this week with open positions in Coffee and British Pound. Now these positions are partially closed. Our portfolio now looks like this.

Let’s take a closer look at what happened last week.

COFFEE (closed & open position), profit $6,375

SetUp to sell for Coffee was published in the weekly trading plan W33.

The first trade in coffee based on this setup was opened on September 18 according to our MA18 pattern. We also opened 3 additional short contracts on September 21st. At the end of the week, we closed 3 contracts with a profit of $6,375. The close earlier than the target was due to the fact that coffee has bullish accumulation and a seasonal upward movement will soon begin.

1 contract remains open. We will move the stop loss to the high of Thursday. At the moment, there are more factors for correction, so we place stop loss so close to the market price. There was a reversal bar on Friday, and the supply and demand indicator shows that there will be a correction.

The COT index has not yet moved into buy zone and coffee has chances for further decline. However, we believe that coffee will move downward with deep corrections.

BRITISH POUND (small account) – closed position, loss $18

Signal to sell for British Pound was published in the weekly trading plan W37. This is the position of our small account. A similar position on the PRO account was closed last week.

Signal to sell for British Pound was published in the weekly trading plan W37. The COT index starts to discharge. However, the price is at the MA52 level and here it is important how it will pass this level.

If we look at the daily chart, the price is already higher than MA18. There is no downward movement due to seasonality. The situation isn’t clear yet. We will analyze new COT data and decide on a further strategy in this currency.


This week is an internal week. The index has bullish accumulation. To understand further movement, we need to look at new COT signals. Depending on the direction in which these signals are going, the index as a whole is likely to be directed there.

To sum up the trading week:
Coffee, profit $6,375
Total loss $6,375.

That’s all about our trading in this week.
Next, we are moving to planning trading week 41.

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.

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