Learn Models COT Report Basics — Following the Hedgers
COT Report Basics — Following the Hedgers
Weekly CFTC positioning data — commercials at an extreme is a longer-term bias tell.
The Commitment of Traders report, published weekly by the CFTC, breaks futures positioning into groups — most usefully commercials (hedgers, the "smart money" of the Larry Williams lineage ICT draws on) versus large speculators.
The classic read is positioning at extremes: when commercial net positioning reaches the edge of its 6-12 month range, the market is often near a longer-term turn, and position flips add confirmation.
Talaria Trade is unusual among SMC channels for teaching COT in depth — as a higher-timeframe bias filter that technical setups must align with, never as an entry timing tool.
How to trade it
- Use a COT index (net positioning ranked within its 6-12 month range) to tag each market’s macro bias.
- Favor technical setups that agree with a commercial extreme; demand extra confirmation against one.
Pitfalls
- Timing entries off COT — the data is weekly, lagged, and can stay extreme for months.
- Reading large-spec positioning as smart money; the speculators are usually the crowd at turns.
See COT Report Basics — Following the Hedgers detected live.
The workstation marks it on the chart the moment it prints.