I always wanted to have a system able to profit from the Eur/Usd mega trends. Yes there are some really mega trends.

I have been back testing the COT report from a year now. I would like to share two things.

1. The COT report can be used as a valuable tool, indicator for a trend trending system profitting from the Eur/Usd megatrends. From one hand every day trader need to diversify through time frames on the other hand it is possible to have a nice system and to be in the game without the hard day to day analysis.

And as a trading system does not have to be difficult here there is a very simple system. Unfortunately there is one problem, there are quite a few opportunities per year.

First I would like to make a shot of the technical signals and the COT report. You know during that year there have been some very clear technical signals. And those signals have been confirmed by the COT report. Mainly we are tracking the big money.

Whe look what is the net position of the big Monney, large speculators. And we go with them. The signal is

-when there is a transition through the zero point.

-that happens to a place where there is a very clear technical analysis signal.

-we have aconfirmation with a trained system that gives us a signal.

On the other hand the other visual pattern is when the large speculators buy too much and the overbought level is reached. Then we could expect a reversal. Those moments are much more unpredictable.

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