I believe that the COT report pertaining to Commodities ( and some Futures ) can be used to establish profitable long term ( positional ) trades. Realistically, it is necessary to use daily charts for exits and entries.

There shall be two types of positions to be utilized:

1. A long Call for a bullish COT trend and a long Put for a bearish COT trend. ( Due to margin requirements, some Commodities may require bullish Call spreads or bearish Put spreads to start ).

2. To avoid draw downs, counter trend swing trading will be used when indicated by the Daily charts. A short Call will be added to the existing long Call to create a bearish Call spread, or a short Put will be added to the existing long Put to create a bullish Put spread. Also, calendar spreads will be used if possible with the short options using the nearer month.When the daily chart indicates the swing trend has reversed and again follows the COT trend, the short option will be bought back.

Why is it necessary to spread to avoid draw downs? While such positions may not be extremely profitable, it does help psychologically to avoid watching a profit erode ... and it is possible that COT trend has changed.

I shall try to carry no more then 5 positions at a time, since expiration dates and first notice days are to be avoided.

Also, it should be noted that I do not expect to see a situation in my lifetime ( I'm 75 ) where I would taking a short position in the energies.

Amending and adding to this post will be as necessary.