COT Index (Indicator Version )

COT INDEX (Commitment of Traders)

Overview This script provides a professional-grade implementation of the COT Index, a momentum and sentiment oscillator based on the CFTC (Commodity Futures Trading Commission) "Commitment of Traders" reports. Unlike raw net position indicators, this index normalizes data to identify relative extremes in market positioning over a specific lookback period (default: 26 weeks).

Originality & Utility While many COT indicators exist, this version addresses specific technical gaps:

Enhanced Normalization Formula: Uses a modified scale to provide a wider perspective of market exhaustion, including "over-extension" levels at 120% and -20%.

Symbol Correction Logic: Includes hardcoded fixes for specific roots like "HG" (Copper) and "LBR" (Lumber) to ensure data fetching accuracy where standard auto-conversion might fail.

Selective Filtering: Allows independent toggling of Commercials (Producers), Large Speculators, and Small Speculators.

Indicator vs. Strategy Version Please note that THIS IS THE INDICATOR VERSION designed for visual analysis and chart integration. For users looking to verify historical performance and signal accuracy, a SEPARATE BACKTESTING VERSION is available in my script panel.

Collaboration & Feedback I am constantly looking to optimize my scripts. If you have suggestions for improvements or feature requests, feel free to reach out. If you find this tool useful, please show your support by HITTING THE BOOST BUTTON—your collaboration helps keep these projects active.

How it Works

Data Retrieval: The script uses the TradingView LibraryCOT to pull Legacy report data (Futures only).

Net Positioning: Calculates the difference between Long and Short positions for the selected group.

Indexing: It applies a stochastic-like calculation over the user-defined weeks period to determine where current positioning sits relative to historical extremes.

How to Use It

Commercials (Producers): Look for readings above 80% (Upper Threshold) or below 20% (Lower Threshold). High readings by producers often indicate price floors, while low readings suggest price ceilings.

Confirmation: Use the 120% / -20 levels to identify extreme capitulation or unprecedented institutional interest.

RISK DISCLOSURE Trading futures and financial instruments involves substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones’ financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.

The COT data provided is delayed by nature (usually released on Fridays with data from the previous Tuesday). This script is for educational and informational purposes only and does not constitute financial advice.