To keep it short, I did a "study" about 4 years ago that took the better part of 6 months of spare time -- a myriad of portions (and "ratios") of COT data that I hand entered into Tradestation and came to the conclusion that the best approach (BY FAR) to using COT data (in an IT trading style) was fading the small specs..
LOOK DON'T THINK for sure
but applying this to emini cot or big contract cot, fading small longs or shrts looks like an expensive hobby.
I realize you are probably not looking for further comment from me but my interest in cot data
is genuine.
Comment away. That's what we are here for...eh?
Just to be clear(er), it was for trading longer term positions in broad market MFs, ETFs, etc. My purpose was in anticipation of my retirement from my "full time job" daytrading the big contract to unleveraged position trading a portion of my (to be) income/retirement portfolio. For me -- it was NOT about trading the futures!
Also, MY RESULT is just that -- MY result. Many others do have success with different approaches that utilize COT data -- AND -- more power to them!
