Commitment of Traders Plug-in
Settings for the COT
In this Track 'n Trade Pro trading training video, I want to talk about the Control Panel, and how we set up the Commitment of Traders.
You'll notice that we're looking at the Commitment of Traders right now. We have that displayed in the bottom window. We have the arrows turned on in the upper window. To change that, we come in here to the little hammer and wrench. We have two options here, we can go into My Default Settings, my default settings of course is for everything, any chart that we open up from this point forward will address these changes. If we go to Current Chart Settings, that's just for this particular chart, just this Soybean Meal chart that we're looking at now.
But let's go in and set the My Default Settings for all of the contracts that we open up from this point forward. Then we go into the Commitment of Traders.
You'll notice that we've set it up so that you can change the Commitment of Traders from a histogram or a line, whichever you prefer. I like mine set to histogram, then if we have histogram, we can come in and see the colors. Then we have the commercials are set to red, if we had that set to line, we could have a dotted line, or a solid line, or we could just turn it right off with none. But because we're not using the line styles, then we just leave this on solid for our histogram purposes.
We see that we can change all the colors here, red, blue, green, if we want small speculators to be a different color than green, we can change them right in here. We have the open interest as yellow.
Then we have our JBCOT buy/sell indicator. We have a blue line and a red line. Of course, these are a series of moving average formulas. We have two periods on it. We have a 28 day period and a 14 day period. Those are what I want to play with here, just for a minute in just a second.
First we can come in here in here, we can see the graph type that we've already talked about. So we have data, and the data is Futures only, or Futures and Options. Sometimes I like to see what the options have to do, have to reflect between the Futures and Options. We can change that in Track 'n Trade, you can watch the chart change- watch this, we're going to hit apply to charts, you'll see a small change in the chart and the way it reflects in the Commitment of Traders. Then, we hit Futures and Options, Apply to chart, you'll notice our chart changes just a little bit here. Not a lot of change, but there's a little bit of change in there.
The government does give us the options, we add them in for you. It gives you a difference in long and short on options, as well.
We also have the setting on how you want to display the buy/sell arrows. These buy/sell arrows are the JBCOT buy/sell arrow indicators and how you want to handle those. I want to handle them, only when the indicator is visible, or I always want to show the arrows. That would mean that anytime that you rotated through to any other indicator- let's say that you're looking at the CCI indicator, the COT indicator arrows would still be showing. They're going to always be on, even though you're looking at the Commitment of Traders indicator. You can also say Never Show Arrows, I don't ever want to see them. So you can't turn them back on, no matter what you're doing out on the front panel. This is the only way you could come back in and turn them back on, so that's Never Show Arrows.
I like to have mine Only Show The Arrows When The Indicator Is Visible. That's the way I like to set mine. Then Display Commitment of Traders, of course means that if we turn that on, every time we open up a chart, it's going to display the Commitment of Traders as one of our options.
We apply to the active chart, you can make the changes that way. Now, let's come in here and change and play around a little bit with some of the settings. I'm going to scroll this off, you're not going to be able to see this whole thing off the screen, because I'm going to go off the screen a little bit. But I want you to concentrate on the arrows.
I'm going to come in here, and I'm going to make a few changes to the buy/sell indicator. I want you to do this on your own, when you get the software and play with it, and tweak it a little bit, decide what you like best. 28 is the default standard setting, and 14 for the 2nd moving average. But if you come in and move these around, let's change this to 21, for example. I'm going to hit apply to active charts, watch what the arrows do. Do you see them change a little bit? That's because we're doing a different mathematical formula based on the Commitment of Traders.
Remember: it has nothing to do with the price of the market, it has to do with how quickly we inform you that the large speculators or the large commercials are changing positions. Where do you want to be told? Do you want to be told a little bit quicker, you're going to get more signals. We're going to tell you more often when they change. Or do you want to know a little bit later and delay some of these signals, which is going to take out a little bit of the movement.
The commercials and the large speculators, they're buying and selling all the time. Adding to their contracts, decreasing their holdings, adding, decreasing. When that happens, we can get a little bit of whipsaw in there, so that's what this buy/sell indicator does. Is tries to take the whipsaws out. The longer the periods the less whipsaw you're going to have. But then, of course, the longer it's going to take for them to, for us to let you know that the commercials are actually changing from long to short. It's kind of a little game here that you have to play.
I have mine in here. I kind of like mine in there in between 21 and 28, of course between 10 and 14. Sometimes if we come here to 10 and turn it on, we get a little bit more whipsaw in there. A little sooner, a little later, depending on how you want to set yours up. I want you to play with it. I like mine between 21 and 28 in between 10 and 14.
That's the Commitment of Traders, and that's the Buy/Sell Indicators and that's how we use the Control Panel. I want you to go through and play with it, and use these numbers. Change them around and look at the different charts, and the different markets. See which one works best for you.