The Holy Grail of Trading


What is the Holy Grail of Trading? A system or methodology that you can trade without incurring any losses and getting maximised profits. Is there such a system? I don’t know if it exists, maybe they do but I know of something that comes close. How do you like to know what the big traders are doing? Since these traders can potentially move the markets, do you not want to follow them? It is like trading with the insiders isn’t it?

Are they going long or short this week? If they are long, what is the size of the trade? Have they been long only this week or have they been long for the past few weeks? Is there a trend that they are following?

The Commitment of Traders Report or COT for short will tell us exactly that! I will explain more about the COT report in the next post.

Comments

Post a Comment

Popular posts from this blog

Commitments of Traders Report (COT Proxy) - Larry Williams

For those of you not familiar with the Commitments of Traders Report, COT Proxy, you might want to check out this website Larry Williams Picture Perfect Trading for a brief introduction. I attended one of his Picture Perfect courses a few years ago and this was one of the things he touched on. The COT report is released by the US Commodity Futures Trading Commission where they show the open positions of traders for futures contracts. For stocks and other instruments there is no such COT report released so what the proxy has done is to simulate/gauge the open positions of these traders.
Read more

Petrochina - HKSE

Image
Petrochina - HKSE Petrochina have a sell signal on Aug 2, 2011. The commercials are net short since then. Missed that signal and only closed the position today at a lost. It is hard to keep track of all the holdings manually. My method is to scan the charts individually to see the signal. Anyone familiar with Ninjatrader and can program an automated stock scanner?
Read more