This lesson explains why fundamental data is essential to Futures traders as well as what kind of economic activity are crucial in affecting price movements.
We will show you how to read commodity reports and how they can be used to evaluate whether there are any physical supply and demand imbalances. Based on two case studies you will learn how to connect the fundamental and technical dots to find high-quality trading opportunities.
Lesson 2: Commitments of Trader‘s Report
Futures traders have access to the "Commitments of Trader‘s Report" (COT) each week. This report provides insights on how large institutional traders and small speculators are positioned in each market.
This lesson will guide you on how to read the COT report. More importantly, we will teach you how to interpret the COT data. We will be able to use these reports and see where big money is moving and how novice traders might be trapped. Based on case studies you will learn how to combine the COT report and our Supply and Demand strategy to anticipate a trend and to find low risk, high reward and high probability trade opportunities.
Lesson 3: Seasonality
What if we knew that for instance heating oil demand is seasonal and that prices tend to rise from January through April when demand for heating oil is highest.
In this powerful lesson, you will learn about one of the most significant forces influencing commodity prices: Seasonality! Seasonal fluctuations are evident for many commodity prices and play a key role in influencing their prices. We will teach you how to combine seasonal patterns with our Supply and Demand strategy to increase your odds and to anticipate more significant moves in advance.
Lesson 4: Correlations
What is correlation and how do we benefit from it in Futures trading? To be an active Futures trader and to recognize your exposure, it is essential to understand how different Futures markets move in relation to each other. In this lesson, we will show you how to eliminate double exposure by using a correlation matrix.
We will pinpoint existing correlations between certain Futures markets. On top, we will demonstrate how these correlations help reducing risk through diversification and increase the probability of success when existing correlations are used to enter a trade.
Interlinking our powerful Supply and Demand strategy with existing correlations will help our decision-making process and give us further confidence when entering a trade.