Public trading strategy
Iran peace deal reopening oil routes — ride the wave in emerging market stocks
Thesis
The US-Iran peace deal is reopening the Strait of Hormuz, which means oil can flow freely again and gas prices should come down. When energy gets cheaper, developing economies get a huge boost because they are the most sensitive to fuel costs. Bloomberg reports that emerging-market stocks just touched record highs on this exact news. Since the deal is just taking effect, the momentum in these markets likely has room to run as lower oil prices ripple through the global economy over the coming weeks.
Strategy approach
Build a rule-based strategy that enters long EEM on H4 when RSI(14) > 55 and price is within 2% of its 20-day high. Exit on a 4% trailing stop or if the price drops below the 10-day SMA, whichever comes first. Max hold 15 days.