Commitments of Traders : Strategies for Tracking the Market and Trading Profitably
Schooled in mathematics, statistics, and computer programming, Floyd Upperman entered the semiconductor industry out of college in 1987. His computer programming talent quickly earned him the nickname "Whiz Kid." After receiving some shares of company stock, he became interested in the market, and his interest quickly bloomed into a consuming passion. During this time, he learned two things: working for someone else would never earn him the financial independence he craved; and none of the available charting software and pricing systems were sophisticated enough to give him an edge as a trader.Applying his statistical and programming talents to the task of analyzing mountains of market data, Upperman discovered something remarkable: there is an underlying order in the commodity markets not?found in the historic price movements of individual stocks. Further, he found that specific patterns in?commodity prices are highly correlated to the positions?held by participants in the commodity markets. These realizations led to his developing a unique trading and tracking system that exploits an obscure source of readily available but widely neglected data: the weekly U.S. government Commitment of Traders (COT) report.Now a full-time trader, a registered commodity trading advisor, and the acknowledged leading analyst of COT data, Floyd Upperman makes available—for the first time in book form—his exclusive, phenomenally successful trading system based on a proprietary forward-looking indicator, Individual Market Participant Analysis (IMPA).In Commitments of Traders, he will show you:Why merely "following the money" can lead you astrayHow to identify the turning pointsCommon—and costly—misconceptions about the COTThe seven steps of an IMPA setup tradeHow to achieve an optimum stop"Plunger patterns" and how to use themHow to apply the "fading system"Commitments of Traders will teach you why the trading activity of commercial institutions—as evidenced in the COT report—is so valuable in analyzing particular markets. And you will learn how to leverage the COT with technical and fundamental analysis. A priceless moneymaking tool, Commitments of Traders is essential reading for anyone trading in the lucrative futures market.