Public trading strategy
Iran peace deal unlocks cheaper oil — ride the emerging market rally
Thesis
Cheaper oil is a massive boost for emerging markets, which are often heavy importers of energy. The peace deal removes a huge source of global uncertainty, encouraging investors to move money into riskier, fast-growing countries. When these funds break out to all-time highs, it shows massive confidence that the rally will continue.
Strategy approach
Build a momentum strategy on EEM using the daily timeframe. Enter long when the fund closes at a new 20-day high. Hold for 15 days and exit if the fund drops 5% from the entry price.