COT Implied Positions is an add-on to be used with the Littlefish FX COT Indicator. It creates an implied COT Report for currency crosses such as EURGBP and EURAUD.
This add-on works on the theory that if we wanted to trade EURAUD, we could in fact trade EURUSD and AUDUSD to get the same results.
For more on this indicator, download our Forex Trading Course, which includes a whole section on Trading the COT Report.
NOTE: This add-on only works with the COT Indicator which must be installed first
Performance for the COT Implied Indicator was created using a combined portfolio of currency pairs using money management rules we teach in the course based on our own style. Currencies used in this portfolio are; AUDCHF, AUDJPY, CADCHF, CHFJPY, EURAUD, GBPJPY.
Figures produced by finding favourable risk/reward settings for each currency pair under the conditions seen in the past 11 years.
Maximum inter-month drawdown of 25.61%
Installation & Tech
Download the NinjaTrader Installation Guide
Watch the Installation video below
What does COT Implied Positions do?
The COT add-on cross references weekly COT (Commitment of Traders) data from two underlying to create a proxy COT indicator for your chosen pair, showing the positioning of market participants in those two currencies.
It also displays a neat visual aid on your charts.
What’s the best thing about it?
It’s a totally unique product – in fact, it’s the only one on the market that allows you to use COT orientated strategies on pairs not featured in the weekly COT data.
It cross references the data so you don’t have to, and displays current and historical data allowing traders to go back and measure Implied COT readings against price charts to form trading strategies.
What Does It Look Like?
How does it work?
The indicator has two key elements to it:
- The green line shows the Non-Commercials (Banks & Institutions) that we look to align our trades with and the blue line shows the Commercials (Corporates, Multi-Nationals) that we want to trade against.
- In the chart above we only use green and blue lines for Non-Commercial & Commercial positioning, but there is an option in the settings to turn on red lines showing speculators ( leveraged funds & other reportable).
How do I use it?
There are numerous strategies we can use based around the COT Indicator and we go into these in great detail within our Forex Mastercourse, but we will of course highlight a basic strategy here for you. In the strategy below we use the regular version of COT but this strategy can be employed in exactly the same way with the COT Implied Positions indicator.
Order Flow Trader & COT Indicator