Choosing between Commercial and Noncommercial Positioning Data

The conclusion of the previous discussion was that although many experts on the COT report downplay the significance of total open interest data, there are often occasions when it is essential to use them with the MIDAS tools. When the data are used, they create excellent curves with timely and accurate signals.

Of course, this conclusion doesn't exclude using net positioning data with MIDAS. It thus leaves open the question of how we use these data as well as which among them we should choose to use. The latter part of the question can be a particular source of confusion, as we saw earlier when looking at the often conflicting views of the experts.

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