Public trading strategy
Middle East ceasefire broken, oil prices surging — ride the energy spike on USO
Thesis
Military conflicts in the Middle East directly threaten global oil supply routes. Because OPEC is already struggling with exports due to the war, this new wave of attacks creates a perfect recipe for even higher oil prices. Energy companies like Chevron stand to make massive profits from this spike, and their shares usually follow the price of oil upward. As long as the ceasefire remains broken, this upward pressure on oil stocks should continue.
Strategy approach
Build a rule-based strategy that enters long USO on the daily timeframe when the price closes above the 20-day high and the ATR(14) is expanding. Exit when the price drops below the 10-day moving average, or use a 5% trailing stop.