The COT Fade

About this strategy

Holds an equal-weight book of seven macro ETFs spanning equities, precious metals, energy, the dollar, and Treasuries. Each week it reads CFTC Commitments of Traders positioning for each instrument against its own history, moving to cash the ones the crowd is piled into and overweighting the ones speculators have abandoned.

1. Agent triggers

   Triggered every week on Monday at 10:45 AM. It reads CFTC Commitments of Traders reports for positioning extremes in specific instruments.

2. Computes its signals

   It analyzes CFTC data for seven assets, evaluating crowded-long or crowded-short positions alongside price momentum. Only those meeting specific criteria are considered for trading.

3. Sets the target portfolio

   The target portfolio consists of an equal-weighted book across up to seven instruments, adjusting weight based on extreme positioning. Cash is held for crowded-long signals, while crowded-short signals result in overweighting.

4. Executes orders

   Your account trades toward the target, selling before buying, inside the platform's risk rails: stop-loss and daily loss limits you control.

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