Information about the CoT-Index and how to calculate it.

Example image of a Commitments of Traders CoT-Index Chart for gold on CME

The CoT Index represents the current net position of a market participant in relation to the highs and lows within a freely selectable period. The default setting was 156 weeks (about 3 years). However, this should be adapted to the own trade and the selected future. The CoT-Index is determined according to the formula:

Net position of the current week - Minimum net position of the last n weeks

Maximum net position of the last n weeks - Minimum net position of the last n weeks


The CoT index gives no signals for a precise time to buy or sell. He only rates the relative Positioning of market participants in relation to the selected period of the index. Extreme values ​​are usually the areas below 20% and over 80% assumed. If the indicator reaches 0% or 100% for a selected time frame of 3 years, so this means that the corresponding merchant group has its most extreme net short or net long positioning in the last 3 years ago. Note: An increase in the net long position can be due both to a reduction of short contracts as well as by setting up long-term contracts! The CoT index should not be used as an exact timing tool, because it not infrequently lingers relatively long in extreme areas. It is more like a signaler to do closer observation of a future.