X Limitless - Smart Money Intelligence™ (SMI)

Use Smart Money Intelligence™ (SMI) to follow hedge funds, commercial flows, and retail sentiment. When smart money and dumb money are at opposite extremes, you’ll
know - so you can trade like an insider.

The "X Limitless - Smart Money Intelligence (SMI)" indicator is designed to provide traders with detailed insights into market dynamics by tracking extreme positioning and open interest across various participant groups, including Commercials, Non-Commercials, and Retail Traders. The indicator is built to normalize and visualize these metrics, enabling informed decision-making gauging the market sentiment.

Key Features

1. Open Interest Extremes

• Displays normalized open interest data for the selected lookback period.
• Highlights market activity intensity, providing clues about potential reversals or trend continuations.

2. Participant Extremes

Tracks Commercials (Users & Producers, Hedgers).

Tracks Non-Commercials (Banks or Institutional Funds, Large Traders).

Tracks Retail Traders (Non-Reportables, Small Traders).

Offers normalization to identify overbought or oversold conditions based on historical ranges.

Setup Instructions

Adding the Indicator

1. Open TradingView.

2. Navigate to the "Indicators" tab and click on “Invite Only”.

3. Search for "X Limitless - Smart Money Intelligence (SMI)" and add it to your chart.

4. Apply the Weekly Timeframe.

Customizing Inputs

Weeks Lookback: Select a lookback period for normalization (In Weeks):

26 weeks - 6 months
52 weeks - 1 year
104 weeks - 2 years
156 weeks - 3 years
208 weeks - 4 years
260 weeks - 5 years

Hide Current Week: Enable to exclude the current week’s data until market closure.

• Show Open Interest Extreme: Toggle the visibility of the open interest plot.
• Show Non Reportables Extreme: Toggle the visibility of the Retail Traders index.
• Show Commercials Extreme: Toggle the visibility of the Commercials index.
• Show Non-Commercials Extreme: Toggle the visibility of the Large Speculators index.

Interpret the Plots

• Green Line: Represents the normalized index of Commercials (Users & Producers).
• White Line: Represents the normalized index of Non-Commercials (Large Speculators).
• Red Line: Represents the normalized index of Retail Traders (Non-Reportables).
• Purple Bars: Represents the normalized open interest index.
• Horizontal lines (20%, 80%) indicate extreme zones where market activity may signify reversals.

Includes horizontal threshold lines for easy interpretation (e.g., 0%, 20%, 80%, 100%).

0% - Maximum Bearish Extreme
20% - Bearish Extreme
80% - Bullish Extreme
100% - Maximum Bullish Extreme

How It Works?

Data Normalization

For each participant group, the indicator calculates net long positions:

• Commercials: Bullish vs Bearish Extreme.

• Large Speculators: Bullish vs Bearish Extreme.

• Retail Traders: Bullish vs Bearish Extreme.

The data is normalized to a 0-100% scale using historical minimum and maximum values within the selected lookback period.

Open Interest

Open interest data is also normalized over the chosen lookback period to highlight extreme activity levels.

Dynamic Updates

Data updates daily or weekly (depending on the selected timeframe) to reflect the latest market positioning.

Best Practices

1. Combine with Other Analysis

• Use SMI in conjunction with technical indicators (e.g., moving averages) for more robust trading strategies (Trend Following).

2. Focus on Extremes

• Look for alignment between participant extremes and open interest for high-confidence trade setups.

3. Long-Term Trends

• Use longer lookback periods (156 weeks or more) to capture broader market sentiment.

Example Use Case

Scenario:

• You’re analyzing Dollar Futures.

Setup:

• Select a 52-week lookback period and enable all participant groups and open interest.

Observation:

• Retail Traders index is near 80% (Bearish Extreme).
• Commercials index is near 20% (Bullish Extreme).
• Open interest shows a sharp decrease.

Conclusion:

• A potential trend reversal is imminent. Consider entering a Long position, aligning with Commercials' sentiment, or look for a counter pair such as the Euro, Pound Futures or CFD (EUR/USD, GBP/USD).

FAQs

1. Why is my chart showing "No relevant data"?

• Ensure the asset you are analyzing has associated Commitment of Traders (COT) data, and use the right Futures Instrument. “Click here for the Futures Tickers Link”
• Ensure that you only use the Smart Money Intelligence on the Weekly Timeframe.

2. What does "Hide Current Week" do?

• This option prevents incomplete data from influencing your analysis before the market closes.

3. Can I use this indicator for non-futures markets?

• No, this indicator is designed for assets with available COT data (futures).

Disclaimer

Smart Money Intelligence is designed to gauge market sentiment, making it a valuable tool for additional confluence. However, it is not intended to serve as a timing tool.

Trading involves substantial risk and is not suitable for all investors. Always perform your own due diligence before making financial decisions.