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Using COT Net Positions to Compare Commercials and Large Speculators

Article TradingView scripts
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Summary

This indicator compares net positions reported for commercial traders and noncommercial traders in CFTC Commitment of Traders data. For each group, it subtracts short positions from long positions and plots the resulting net value around a zero line. The series are shown as stepped lines, making changes between reporting observations visible on a chart of the related futures market.

The comparison can help traders observe whether producers and other commercial participants are net long or short relative to large speculators. The description presents the tool as multi-timeframe and non-repainting, and its current-week setting suppresses values until the chart bar has closed. It offers positioning context, not a trading rule or evidence of predictive value. COT data is periodic and tied to the mapped futures contract; availability depends on the symbol and the indicator's CFTC-code conversion, with a few contract-specific overrides.

Key ideas

  • Net positioning is calculated separately for commercial and noncommercial traders by subtracting shorts from longs.
  • The two net series are plotted against a zero reference to show net-long or net-short positioning.
  • CFTC Commitments of Traders data supplies the underlying position figures.
  • The current-week display setting withholds values until the chart bar closes.
  • The indicator provides positioning context but does not establish that either group's positions predict price changes.

Tags

FuturesSentimentTechnical indicatorsCommodities

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.