Trading with insider information is a prohibited technique in the economic markets, however the Commodity Futures Trading Commission issues a record every week that may come as near to legal insider info that can obtain, a minimum of for the U.S. futures markets. Yet is it useful as a device or method to help the trader to be on the correct side of the markets. Prior to attempting to address that inquiry it is best to explain what this report is and what it includes in the way of useful information. The Commitments of Traders data which I will call COT information from this factor forward is released each Friday or Monday if Friday is a vacation based on data gathered the previous Tuesday. This delay in the launch of information may be a factor for really temporary investors, yet should not be an issue to the longer-term position investor. This data breaks down the number of contracts held long as well as short for industrial traders, huge investors, and also small investors.Every futures market is represented that has at least 20 large investors holding a position. The existing information is readily available in message style and also can quickly be importing into an Excel spread sheet. Also, all the history information is offered in both text and Excel layout. Once the information is in Excel, it can be outlined in addition to price and various technological indications using charting software such as Trade Station. There are also software programs that can assist manage the data, as well as suppliers that offer the data, nonetheless the data is cost-free for anybody to download and install straight from the federal government CFTC web site. When considering the raw information, you will certainly see several columns of numbers. The majority mirror trader of these columns are of little worth in analysis. On the CFTC website there is a web page that tells you what each column stands for. The only columns valuable for analysis are the lengthy and brief placements of the large, reporting investors, the commercial traders, and the non-reporting traders, and also certainly the day. The reporting degree will vary by market. Likewise, there are several oddball markets that many investors will never trade. I simply delete or neglect these. Some markets with low open passion will certainly appear one week and after that be gone the following if the degree of large investor involvement drops below 20, so it is best to remain with the fluid markets.
One more factor on the available data is that there are two records: one revealing the futures contracts, while the various others reveal the consolidated futures and matching choices. In the past the futures data was released on Friday, while the combined futures and choice data was not readily available until the complying with Monday. Therefore most investors would certainly accumulate the futures information. Currently both reports are launched on Friday. Also, it appeared in the past that real rate vehicle driver was the futures contract, with the choice being of less value as it was typically used by small investors, or for different spread techniques.