A1 EdgeFinder Strategies

Read through the strategies A1 analysts use to trade with the EdgeFinder. These strategies are intended to be used for educational purposes. 

Strategy #1

Institutional Position Tracking


Follow the banks’ institutional trades for more long term positioning

What We Look For:

The top 3 long and short positions on the EdgeFinder
Look for increase in weekly change on long or short positions
One currency with strong bullish sentiment and another with strong bearish sentiment

Defining strong bullish vs bearish sentiment:

Strong COT sentiment is defined by either an 70:30 or a 30:70 long/short ratio
This will define when we first enter our trade
Weekly institutional activity will help us decide whether to scale in or out

How We Trade to the Long or Short Side:

Enter pairs with opposite strong biases on both currencies
One asset must have a strong COT bullish bias and the other must have a strong COT bearish bias
Pick up more positions if there is an increase in weekly long contracts and a decrease in weekly short contracts
Scale back on position size if there is a decrease in long positions and an increase in shorts
The first entry can be 3-5 open positions
From there, we will look at activity each week
If COT shows stronger bullish sentiment, we let the trade run
If COT shows a weaker bullish, we scale back by letting go of some open positions

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