The trend following model by Kaufman says that trading by the direction of the trend is a conservative approach to the markets. Kaufman’s Market Efficient Model states that longer trends are the most reliable but they respond rather slowly to changing market conditions. The main argument of the Market Efficiency Model is that an adaptive method must be applied to the markets for proper trend following.
The COT Report is the single most important report issued by the CFTC revealing internal market dynamics. It’s some kind of sentiment indicator. The data collected on a weekly basis contains market positions of the largest futures traders. Let’s see how we can use the report to accurately predict market turns.
We gonna show you something really interesting and when done correctly it can be exploited. We are talking about imbalances. You can basically do this with any time frame and any contract especially those with rising volatility and severe directional price changes for a prolonged period of time.
How to implement a ranking system for trend following strategies. Analyze the probabilities and trade the commodity with the odds in your favor and the highest risk-reward potential.
In today’s uncertain markets, traders who want to spot major market moves and protect themselves against large losses should consider using spread trading. Spreads are one of the most powerful market indicators. The two major ways looking at them are the price premium structure and the strengthening/weakening of the spread.
How does one determine whether an asset is fundamentally undervalued or overvalued? Gold. It’s the ultimate storehouse of value. Let’s have a look into the present and see if we can construct an indicator and use the gold price to measure the value of any commodity.