Futures Trading based on COT Report W43-20

by Michael Chechnev | Oct 25, 2020 | Trading week results

Hello Everyone,

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

This week was not full of deals. Therefore, the results will be rather quick.

Generally, the main event in the coming weeks is the US elections. Both high volatility and high risks are expected. Therefore, it is important to be conscious about the choice of markets and the risk of specific trades.

In general, the main indicator of the COT report – the COT index is in the sell zone for the indices. We believe that a bullish signal will start to appear in a COT report soon and buy signals will form. The energies sector is on the sidelines and it is better not to go here at this moment, in our opinion. Bonds are in a downtrend and it is more efficient to buy them.

In the soft sector, we expect the cocoa trend to be short. Perhaps soon there will be setups for short trades in cotton. In sugar, we are waiting for a trend reversal. There are interesting moves in metals, but they are very short-term.

The grain sector has good trends, but the sector can turn around at any moment and there is no point in entering such a risk. In currencies, as always, everything depends on the US dollar. It is now growing and decreasing. Of other currencies, our focus is on the Australian dollar.

It was a quick overview of our strategy for the near future.

I would also like to note that at the moment we have made a historical record of annual profit. We continue to work to improve our performance.



Now let’s take a look at last week’s deal.

Open positions at the moment look like this.



COFFEE – open position

We have two open short contracts in coffee. SetUp to sell for Coffee was published in the weekly trading plan W39. COT is still not discharged, and this for us means a high probability of further downward movement. In addition, seasonality contributes to lower prices for coffee.

Therefore, we will continue to look for short-term patterns for additional short trades. For the current trade, the stop loss is placed at Thursday’s high.









INDEX CRB

CRB index approached the upper border of the corridor. While there is a sitting of uncertainty. Next week we will see if there will be a correction.


That’s all about our trading in this week.
Next, we are moving to planning forthcoming trading week 44.

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

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