Dear Forexmentor member,

When talking about Commitments of Traders we inevitably try to turn our attention to exciting signals that may forewarn of important reversal points in the market. But what do we do during those sometimes lengthy periods in between valid COT signals?  What if we get a signal but the market seems to continue going in the opposite direction?

My name is Frank Paul and I’m the developer and weekly host of the “Forex Profits with COT” educational course and market forecast subscription service.

I’d like to invite you to watch the 27-minute, no obligation presentation below on how we can execute exciting position trades on important reversal events even when COT data is not giving clear signals.

Enjoy!

Frank Paul
& the Forexmentor team

FREQUENTLY ASKED QUESTIONS ABOUT C.O.T.

• What is COT and how will it help me make money?

COT stands for Commitments of Traders, a report of the contract holdings of futures market participants mandated by the Commodity Futures Trading Commission, a regulatory body of the United States Government. Each week, the CFTC publishes raw data from which it is possible to determine who is buying and selling in each of more than 70 commodity markets, including the major currencies. The raw CFTC data is very difficult to make sense of as-is, so we collect it and run it through a sophisticated reporting and analysis model that provides useful clues as to future market direction. The COT data is as close as we can get to a paper trail of the buying and selling activities of the so-called Commercial traders, the ‘big dogs’ who really move the market. All we need to do is understand when they have hit extremes in their buying or selling, then jump on board for very nice runs that are often worth several hundred pips or more.

This service is designed primarily for position traders and swing traders who trade less frequently, but with much larger profit objectives than is typical of day trading or scalping approaches. The minimum duration of trades executed from our market forecasts will usually be at least several days to a week, while the maximum duration could run weeks to months to as long as a year or more, depending on the profit objectives of the individual trader. Because we also address fairly sophisticated Elliott Wave analytics to supplement the COT numbers, the service will be most effective for intermediate to advanced traders, although newcomers who are willing to buckle down and learn can definitely derive a lot of benefit.

Our product comprises two main elements: a comprehensive educational component that explains how to read and make sense of the COT data in clear, simple language anyone can understand; and a weekly subscription service that provides high level market forecasts using an impressive and unique confluence of COT and Elliott Wave analytics. The subscription includes multi-chart reviews for a total of 12 individual markets (8 major currencies plus 4 bonus commodity markets) making use of both our custom COT charts; and the monthly, weekly and daily spot charts of related markets. The commentary is provided by way of fully narrated AVI files uploaded every Saturday, as well as a supplemental ‘Weekly Flash’ PDF document which can serve as a useful reference tool. We’re confident that if you were to compare our offering to the competition’s, you’d quickly conclude we give you more than twice as much value for less than half the price. Our goal is to help you succeed.

The market abounds with trade alert systems that purport to provide you well-timed recommendations as to when to get in and out of the market without any explanation whatever. Many of these services try to dupe traders with the tempting fantasy of the ‘lazy man’s road to luxury’ – just push the buttons on your keyboard when we tell you to, and you’ll get rich. The problem is, most of them just don’t work. Instead of issuing you buy/sell signals, we provide professional-calibre forecasts of market action including important reversal points, price projections, and strategic support and resistance, all based on the powerful combination of COT analytics and Elliott Wave. When the ‘herd’ is busy over-extending themselves in a buying frenzy at a market top, we stealthily advise you where to take profit, get out of the move before it reverses sharply, and prepare yourself for the next move in the opposite direction. This is far more beneficial than ‘black box’ signals that require no work on the part of the trader. After all, when considering putting your hard-earned money on the line, wouldn’t you feel most confident in your decision knowing why it makes sense to do so?

The first thing you’ll want to do when starting your subscription is spend some ‘quality time’ with our educational component we call An Insider’s Guide to the Secrets of the Commitments of Traders Report. Here you’ll learn everything you need to make sense of futures market trends and how they effect the spot Forex market. Our presentation includes a comprehensive case study which shows how the dramatic 1800-pip collapse of the GBP/USD pair from its November 2007 high above 2.1100 was completely predictable using our service. Once you’ve viewed the course materials at least once or twice, then you’ll want to spend time each weekend reviewing the latest market reports, which tie it all together in a very practical, trading-focused package to help provide you a clear ‘road map’ for the major currency pairs of choice. Most traders spend at least one hour each weekend with the subscription data, although typically our coverage runs longer than that to cover all major markets. Depending on your level of trading experience and knowledge, you should be able to start taking trades with the help of our market forecasts in as little as 1-2 weeks. The first month of weekly subscription review is included free of charge with course purchase.

Yes, you can cancel your weekly subscription at any time by contacting us in writing (info@forexementor.com). Please note we do not provide ‘partial’ subscription refunds. If you decide to cancel half-way through a new 30 day subscription period, it will only take effect at the end of that month, and in the meantime you will continue to have access for the remaining weeks already paid for. For the introductory course purchase, we cannot provide refunds of any kind due to the nature in which the information is provided. All introductory course purchases are final.

Most weeks, the latest AVI files and PDF summary page are posted to the member’s page by no later than Saturday afternoon, 5pm Pacific Standard Time. Because the raw CFTC data is not usually available before Friday afternoons, we make it our top priority to produce the weekly reviews in a very efficient manner to put the information in your hands as quickly as possible. On the rare occasion that a service disruption is anticipated, we will notify you ahead of time by email and will credit your account for an additional week to compensate.

Because no two traders approach the market in exactly the same way, it would be foolhardy to attempt an estimate at how much money each trader may make using our service. The final result will depend on your unique execution decisions governing variables like position sizing, size of price objectives (aggressive vs. conservative), time in the market to complete the trade, etc. Our service is like a road map, but it is up to you to figure out how fast you want to drive and how far towards the ultimate destination. Having said all that, it would in most cases be extremely unlikely not to find the equivalent of at least1000 pips tradable potential for each market we cover over the course of a year with the clearly explained price pattern analysis, and laser-sharp reversal points and profit objectives we document every week. That’s not even including ‘pyramid entry’ opportunities, which can easily double or triple the potential of a major run. Some subscribers also apply our conclusions on cross-pairs they trade, which of course offers up tradable potential well beyond these norms.

Our course presenter Frank Paul espouses the motto “enter like a scalper, exit like a position trader”. This approach means that even though we’re often positioning ourselves for profit of 200, 500, or 1000 pips or more, there’s no need to take on the huge protective stop risks that are often employed in traditional approaches to position trading. Why risk 200 pips when you can get a precise entry point with a protective stop of no more than 30-40 pips? A profit target of 500 pips with a risk of 40 pips can yield a Reward/Risk ratio of more than 12:1 which is phenomenal. Of course, doing so depends on having enough time to watch the market for several hours each trading session. Another way to minimize your risk when waiting for precise entry points is not a possibility, is to simply scale the size of your position to reduce the dollar risk to a manageable level. For example: 1 mini lot x 200 pip stop = $200. There are a wide variety of very effective entry and risk minimization strategies discussed in the course material available at www.forexmentor.com, virtually any of which can be successfully employed in conjunction with Forex Profits with COT.

You can send an email with your questions ay any time to frank@forexmentor.com to receive a personal reply from Frank Paul. Frank’s policy is to address all queries within 24 hours of receipt. Again, our goal is to support you in your path to success, so no question will go unanswered.

It’s no secret that the weekly Commitments of Traders report (published by the U.S. Commodity Futures Trading Commission) often yields extremely important clues as to future market direction. This knowledge of how the ‘Big Dog’ traders are positioning themselves in the futures market gives us a huge advantage when trading currencies in the cash market.

Yet sometimes it can be difficult for newer traders to know how to incorporate COT data into actual trading decisions. Some make the mistake of wanting to jump into a trade right away when they see a potentially important COT signal. Others miss opportunities altogether because they’re confused about the link that exists between these two markets. The result? Frustration and dissatisfaction.

The good news is that we at Forexmentor have developed a new trading resource that will help you better qualify COT signals and draw the linkage between COT positioning and high level price action.

Our new Forex Profits with COT service is developed and hosted by Frank Paul. Those familiar with Frank’s previous offering Forex Profits with MACD know that his approach is to leave no stone unturned in the quest to provide top-quality trading resources.

Frank’s approach to the COT is unique and, in our opinion, completely unparalleled in the market. With this service you don’t just get a table of numbers and a cryptic chart or two that leaves you wondering what to make of it all.

FOREX PROFITS WITH COT PREVIEW

Here's what you get with the subscription of Forex Profits with COT:

First, we provide you an unparalleled education in COT analytics through our introductory course entitled An Insider’s Guide To The Commitments Of Trader Report. Then, with our subscription service, you get a top-down weekly analysis of COT levels plotted with the futures price trend, and an innovative trade signal system augmented by the powerful concepts of Elliott Wave, Fibonacci support/resistance, and price projections on high level price charts.

Frank bundles all this up with easy-to-digest weekly video commentary that highlights his view of current trend, reversal points and projections for a total of 8 major currencies! And make no mistake, when the signals are at all ambiguous or weak, Frank is just as clear about staying out of the market as he is when jumping in, which in itself can also be very valuable.

Forex Profits with COT Features:

	An extensively annotated Introductory Course which provides a hands-on “guided tour” of the information resources and analytical tools used.
	Each week, a total of up to twelve different charts (COT and Forex) for each market.
	Access to a proprietary notation system that transcribes the COT signals and indicators onto spot market price charts.
	At least 15 minutes per market per week of fully narrated review of the latest COT data in relation to high level price action.
	Ongoing education as to how the “ Wave Principle” and COT divergences so often work hand-in-hand to signal important market turns.
	Over time, opportunity to participate in the development of a “COT traders community” including trade-of-the-month competitions, blogs and user input into the weekly content.
	and much more...

If all that weren’t enough, Frank has agreed to “go the extra mile” for us in creating a truly useful trader’s resource. Check out these valuable bonuses provided free to all subscribers:

LIMITED TIME OFFER BONUS Bonus Analysis for 4 Additional Non-Forex Markets! Whether your interest is inter-market analysis, or as a trader of non-Forex markets in order to supplement your opportunities, Frank will provide the same coverage for each of the 4 “bonus” markets – This includes: Dow Jones Industrial Average Light Sweet Crude Oil Gold Silver This is in addition to the 8 “major” Forex instruments, together with spot market charts pairing each major currency against the US Dollar.

Due to the frequently updatable nature of the material provided, this service can only be offered online. On purchase, you will immediately be issued a user name and password and can start accessing the member’s area immediately. Each Friday afternoon, Frank updates his analyses based on the latest CFTC 'raw data'. He then prepares the weekly video files and charts, for access by subscribers starting no later than Saturday at 8PM EST each week.

WHO WILL BENEFIT...

I heartily recommend this service, and believe it will definitely accelerate your ability to use and understand COT for maximum profit.

Good Trading to you,

Peter Bain

"FOREX PROFITS WITH COT" COURSE CONTENT
(over 6 hours running time)

Module I: Secrets Of the COT Explained (2 parts, running time: 92min)

Part 1 – “Secrets of the COT Explained” (53:29)

In this introductory section we lay the foundation for the course content and weekly subscription data, explain key concepts pertaining to the Futures market, and review each of the three types of market participants tracked by COT data – Commercials (“Hedgers”), Large Speculators (“Professional Trend Followers”) and Small Speculators (“The Herd”). Learn what a Futures contract is and how it’s traded, key differences between Futures and Forex, and how and why the COT data is so important to trading success.

• Welcome Message
• What Makes Our Service Different?
• Why Are We Doing This?
• What Should You Expect to get Out of This?
• What Not to Expect
• Coming Your Way (A Brief Rundown)
• What Exactly Is the COT Report?
• Where Does COT Data Come From?
• So Why Should I Care About COT?
• What is a Futures Contract?
• What Does it Mean to Go Long or Short in Futures?
• Key Differences: Futures vs. Forex
• Meet the Players, part 1 – The Commercials
• Meet the Players, part 2 – Large Spec Traders
• Meet the Players, part 3 – Small Spec Traders

Part 2 – “Secrets of the COT Explained” (38:49)

Section 2 let’s you in on a COT secret…ten of them in fact! All the most important “behind the scenes” principles and secrets most other resources don’t (or won’t) fill you in on. Learn about the important price linkage between Futures and Forex markets, how and why volume flows in the Futures world effect price action, the fallacies surrounding conventional interpretation of market “Open Interest”, how and why Commercial traders transact in such contrarian fashion over long periods of time…and lots more!

• Secret #1 – The Futures Market Leads the Spot Market
• Futures and Spot Markets: The Link
• What Studies Have Shown
• Secret #2 – COT Ultimately Boils Down to One Main Idea…VOLUME FLOWS
• COT Basic Metrics of Interest
• Secret #3 – It is Extremely Import to Assess Price in Relation to COT Volume Flows
• Secret #4 – There is Always Perfect Equivalence in Positions Held in the Futures Market
• Futures Market Flows are Always Symmetrical
• Secret #5 – Small Spec Traders Account for Relatively Limited Share of Market so We Don’t Need to Track Them Separately
• Futures Volume Significant by Segment
• Secret #6 – Commercial Traders Buy and Sell Very Differently from You and Me
• 2007 – Commercial Traders SHORT in a Rising Market for Pound Sterling
• A Quick Lesson in Merchandising Market Dynamics
• Secret #7 – Traditional Beliefs about Open Interest are Mostly Wrong
• How Open Interest Really Works
• Secret #8 – We Don’t Necessarily Want to Go Long/Short Forex Just Because the Big Dogs are Long/Short in Futures
• Secret #9 – Contrary to Popular Opinion, We Don’t Always Seek to do the Exact Opposite of the Small & Spec Traders
• Secret #10 – When it Comes to COT Data, it is Extremes That Are of Most Interest to Us
• How We Capture Extremes
• 30-Second glossary: A few Important Terms

Module II: A Guided Tour Of the Forexmentor COT Report
(3 parts, running time: 181 min)

Part 1 – “A Guided Tour of the Forexmentor COT Report” (57:03)

Our first of three segments introducing the weekly reporting package provides you a detailed compendium of all the indicator readings and events that are of interest to us. In a nutshell, how to read the nine custom COT charts we’ve created for you. We review a never-before-shown schematic on the four types of divergence signals effecting the important metrics of Open Interest and Net Positions, then explain index crossovers, and the importance of reading the various indicator events in relation to trend.

• The Whole Shebang…In a Nutshell
• The Whole Shebang, part 2
• The Whole Shebang, part 3
• Four Modes of Analysis
• What We’re Looking for…Who’s Controlling Open Interest?
• Open Interest Divergence Schematic
• Divergence, Divergence, Divergence!
• Why Divergence is of Interest to Us
• Another Angle: Index Crossovers
• Note to Self: Always Read COT Divergences in Relation to Trend

Part 2 – “A Guided Tour of the Forexmentor COT Report”(1:08)

Time to roll up our shirtsleeves and study our custom COT charts #1 through #9 in detail. This is the section you go to gain an in-depth understanding of what each of the charts tracks, why it’s important, and how to use the information in a practical way to plan and execute high-probability trades that make money. Each of the nine sample charts is supplemented with mini case studies – references to actual signals plotted on the Daily chart for various markets showing the impact the various indicator signals foretold in terms of price action. And a special treat – your introduction to the “Gravity Index”, a powerful, proprietary price divergence indicator we developed exclusively for this resource, available nowhere else.

• How to Read Chart #1 – Long Positions vs. Open Interest
• How to Read Chart #2 – Short Positions vs. Open Interest
• How to Read Chart #3 – Net Positions vs. Open Interest
• How to Read Chart #4 – Commercials Net vs. Open Interest
• How to Read Chart #5 – Commercials Net vs. S&S Net
• How to Read Chart #6 – Commercials Net vs. Price
• How to Read Chart #7 – Commercials Net vs. Net USD
• So What the Heck is a Gravity Index?
• How to Read Chart #8 – Futures Price vs. Gravity Index
• How to Read Chart #9 – Daily Spot Price vs. Gravity Index
• A Dose of Reality: Does COT Really Work All the Time?

Part 3 – “A Guided Tour of the Forexmentor COT Report” (56:06)

Module II concludes with an introduction to the lineup and configuration of charts we use to draw the linkage between Futures market flows and price action in the Spot Markets, including Forex. A brief reference to Elliott Wave concepts and in particular how we use them to “filter” and time COT divergences, supplemental technicals (such as Trend Channels) and an overview of the information processing model that guides our response to COT rounds out this informative section.

• A Quick Note on Index Instruments
• Spot Market Chart Lineup
• Indicators & Studies We’re Using on the Forex Charts
• Elliott Wave…Where to Start
• Your 30-Second Primer on How to Draw and Use Trend Channels
• Data, Data Everywhere…What to Do With It?
• What Not to Do With It
• How to Read the Weekly Flash
• Weekly Schedule of Events
• Service Disruption Policy
• Our Long-term Vision for This Service
• Risk Disclosure Statement

Module III – Case Study: COT Signals and the November 2007 Collapse of GBP/USD (2 parts, running time: 73min)

Part 1 – COT Signals and the November 2007 Collapse of GBP/USD” (30:34)

In the first week of November, 2007 the British Pound commenced an absolutely stunning (and for many people – unexpected) collapse against the greenback that wiped out much of the gains it had made past the 1.9300 mark all the way to its yearly high above 2.1100 – over 1800 pips from start to finish. For those of with an eye on COT this collapse was completely predictable, as clear bearish divergence signals had materialized just four days before the start of the collapse. In this section we review the COT chart signals as they actually appeared at the live edge of trading, and pick them apart to see how they would’ve prepared us for a short position trade that was simply too good to pass up.

Part 2 – COT Signals and the November 2007 Collapse of GBP/USD” (43:22)

Module III concludes with a clear and explicit linkage drawn between divergence metrics on the COT custom charts and price structure (including Elliott Wave concepts) on the various Forex spot market charts, and shows how application of the pyramid concept (adding to an open position at strategic junctures) could’ve magnified the available profit potential from this exciting run. The focus on this section is to explain how we would’ve put the information all together to create a coherent and focused trading plan.

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