Description: The Commitment of Traders (COT) is a valuable raw data report released weekly by the Commodity Futures Trading Commission (CFTC). This report offers insights into the current long and short positions of three key market entities:
Commercial Traders (usually represented in red)
Large Traders (typically depicted in green)
Small Speculator Traders (commonly shown in blue)
The concept of utilizing the COT data as a strategic trading tool was first introduced by Larry Williams, who emphasized the importance of monitoring Commercial Speculators – large corporate producers or consumers of commodities.
The Inner Circle Trader (ICT) prompts us to delve deeper into this data. While we can easily determine their Net Position (also referred to as the Main Program) by subtracting Commercial Short Positions from the Commercial Long Positions, this calculation doesn't reveal their ongoing Hedge Program.
Merely following the Main Program won't provide a trading edge. Aligning with the Hedge Program can be an invaluable weapon in your trading arsenal.
The Commercial Speculators' Hedge Program can be unveiled by examining the highest and lowest reading of their Net Position over a chosen time period and setting a new "zero line" between these extremes. This process generates a novel "COT Graph" providing a detailed understanding of the Commercial Speculators' current market activity.
When the Hedge Program, Seasonality, and Open Interest are cross-referenced with Institutional Orderflow, a trader can construct a very clear medium-to-long-term market narrative.
Features:
Access COT Data for the Commercial Speculators via Tradingview's reliable data source
Automate calculations and display the 3-month, 6-month, 12-month, 2-year, and 3-year Hedge Program
Define your own Custom Time Range for the Hedge Program
Display the Main Program and all Hedge Programs in an easy-to-understand table format
Additionally, by following the included instructions, you can augment your table with COT data from multiple markets. This extra information can help monitor correlated markets and develop a more robust market narrative:
Versionshinweise
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Update: added option to hide multi-market data (once enabled through code modifications)
Versionshinweise
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Corrected instructions
Versionshinweise
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Update: added error handling by limiting the display of COT Data to the Daily Timeframe or higher – Lines 12 to 15
Versionshinweise
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Bug Fix: hiding COT Data did not hide boxes, fixed
Versionshinweise
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Bug fix: COT market cell for the Info table was reporting wrong ticker, fixed.
Amazing Mate! Can i apply the indicator on lower Time frame?
toodegrees
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@M0J0SMC, I have made it so that it only shows on the Daily Timeframe as this is where the information is most valuable – also LTF can cause errors because you don't have enough candles to check previous price action. If you'd like to experiment, take out lines 12 and 13 :)
BATHLOMEW
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@toodegrees, hw can I implement this indicator on my trading view
venkatanarayanan
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Thank you for this wonderful Indicator. If the commercial net position is above the Zero line is it considered a buy or sell as commercials typically do the hedging. Thank you for your feedback. Kind regards, Krishnan
ChoiceSoulution
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@ toodegrees, thank you for your contributions to trading community. Michael teachings us how to determine the weekly bias and use that as our focus when choosing trade direction. If we configure the settings in your ICT COT script to weekly, is there anything other than that in the settings we'd need to configure in an attempt to further assist us in determining or confirming our weekly bias? Thank you!
bandofaristocrats
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It's unbelievable someone created an indicator for Commercials as ICT focuses on while most create one for Asset Managers and Leveraged funds. This will save a lot of time and do the work with ease. Thank you!