COT Positioning: wherethe big money sits.
COT positioning shows how institutions are positioned, based on the weekly Commitment of Traders data. In Prime Terminal it is charted per market so you see the net position, the weekly change and the trend at a glance.
It is the tool behind our COT Friday routine.
What it shows
Net positions for leveraged funds and asset managers, the change against last week and a chart of the last months. For example: EUR, leveraged funds net long 112K, +28K this week.
How to read it
A growing net position in the direction of your bias supports the idea. A shrinking one after a long run is a warning. Extremes tell you the easy part of a move is probably done.
Use it in real trading
The tool informs the decision, it never makes it. Here is how it plays out on real trading days.
Funds have added to their EUR long 3 weeks in a row. Your bullish EURUSD plan has institutional support.
Funds cut their gold long 3 weeks in a row while price still rises. You tighten your plan and reduce size.
Mistakes to avoid
- Reading the data as if it were live.
- Ignoring which group is moving.
- Using COT alone without the macro picture.
What makes it different
Raw CFTC data is public. What you get here is the data cleaned, charted and placed next to retail sentiment and the bias.
Questions
How current is COT data?
It is released on Friday with positions as of Tuesday.
Which markets are covered?
The major currencies, metals, energy and equity index futures.
Should I trade the weekly change?
No. Use it to confirm or question your bias.