Public trading strategy
Iran strikes hit a tight oil market — load up on energy stocks and oil funds
Thesis
Military escalation in the Middle East is directly threatening the world's oil supply routes, pushing oil prices up sharply. This supply threat is hitting a market that is already dangerously low on stored oil reserves. When conflict escalates and stored supplies are this scarce, oil prices tend to climb rapidly as buyers scramble to secure barrels. Buying energy stocks or oil funds allows everyday investors to ride this wave of rising fuel costs.
Strategy approach
Build a rule-based strategy that enters long crude oil futures (CL=F) on a daily timeframe when the front-month contract is in backwardation and the 14-day RSI crosses above 60, with a 5% trailing stop and a 21-day max hold.