Public trading strategy
Middle East conflict escalates — park your money in defense contractors for safe
Created
Thesis
When geopolitical conflicts escalate suddenly, governments immediately reassess their defense budgets and military readiness. The U.S. airstrike on Iranian facilities signals a potentially prolonged engagement in the Gulf. As investors dump risky tech stocks, capital typically rotates into defense companies that provide drones, surveillance, and munitions. Companies like Lockheed Martin and RTX Corp offer a defensive hedge in a volatile, war-footing market.
Strategy approach
Build a defensive momentum strategy on LMT and RTX on the Daily timeframe. Go long when the stock price closes above its 20-day high while the S&P 500 (SPY) closes below its 20-day low. Use a 5% trailing stop loss to protect capital.
Markets and timeframes
Entry and exit at a glance
These are the named rules in the shared configuration. Review the full conditions below before using a strategy.
- Entry: DONCHIAN Crossover Long (SPY@1d) (3 conditions)
- Exit: Position Exit Rule (SPY@1d) (1 condition)
- Exit: Stop Loss at 5.0% (1 condition)
- Exit: Take Profit at 10.0% (1 condition)
- Exit: TP: Near Resistance[1] (SPY@1d) (1 condition)
- Exit: SL: Below Support[1] (SPY@1d) (1 condition)
Shared strategy rules
Rule configuration
{
"data_dependencies": [
{
"symbol": "SPY",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "upper",
"indicator": {
"name": "donchian",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "donchian",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_above",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "DONCHIAN Crossover Long (SPY@1d)",
"priority": 1,
"trade_symbol": "SPY"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule (SPY@1d)",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -5
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Stop Loss at 5.0%",
"priority": 10,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 10
}
}
],
"enabled": true,
"id": "exit_3",
"name": "Take Profit at 10.0%",
"priority": 11,
"purpose": "take_profit"
},
{
"applies_to": "long",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_4",
"name": "TP: Near Resistance[1] (SPY@1d)",
"priority": 97,
"purpose": "take_profit"
},
{
"applies_to": "long",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_5",
"name": "SL: Below Support[1] (SPY@1d)",
"priority": 100,
"purpose": "stop_loss"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 786,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Indicator configuration
{
"indicators": [
{
"name": "donchian",
"period": 20
},
{
"name": "ema",
"period": 10
}
]
}Parsed strategy
{
"data_dependencies": [
{
"symbol": "SPY",
"timeframe": "1d"
}
],
"entry_rules": [
{
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "upper",
"indicator": {
"name": "donchian",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"field": "lower",
"indicator": {
"name": "donchian",
"period": 20
},
"type": "indicator"
}
},
{
"left": {
"field": "close",
"type": "price"
},
"operator": "crossed_above",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"direction": "long",
"enabled": true,
"id": "entry_1",
"name": "DONCHIAN Crossover Long (SPY@1d)",
"priority": 1,
"trade_symbol": "SPY"
}
],
"exit_rules": [
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"chart_ref": {
"symbol": "SPY",
"timeframe": "1d"
},
"indicator": {
"name": "ema",
"period": 10
},
"type": "indicator"
}
}
],
"enabled": true,
"id": "exit_1",
"name": "Position Exit Rule (SPY@1d)",
"priority": 1,
"purpose": "signal"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "less_than_or_equal",
"right": {
"type": "constant",
"value": -5
}
}
],
"enabled": true,
"id": "exit_2",
"name": "Stop Loss at 5.0%",
"priority": 10,
"purpose": "stop_loss"
},
{
"applies_to": "both",
"conditions": [
{
"left": {
"field": "unrealized_pnl_percent",
"type": "position"
},
"operator": "greater_than_or_equal",
"right": {
"type": "constant",
"value": 10
}
}
],
"enabled": true,
"id": "exit_3",
"name": "Take Profit at 10.0%",
"priority": 11,
"purpose": "take_profit"
},
{
"applies_to": "long",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "greater_than_or_equal",
"right": {
"rank": 1,
"type": "resistance_level"
}
}
],
"enabled": true,
"id": "exit_4",
"name": "TP: Near Resistance[1] (SPY@1d)",
"priority": 97,
"purpose": "take_profit"
},
{
"applies_to": "long",
"conditions": [
{
"left": {
"field": "close",
"type": "price"
},
"operator": "less_than",
"right": {
"rank": 1,
"type": "support_level"
}
}
],
"enabled": true,
"id": "exit_5",
"name": "SL: Below Support[1] (SPY@1d)",
"priority": 100,
"purpose": "stop_loss"
}
],
"position_sizing": {
"max_position_percent": 25,
"method": {
"fib_stop_ratio": 786,
"risk_percent": 2,
"type": "fixed_risk"
},
"min_position_value": 100
},
"trigger_timeframe": "1d",
"version": 1
}Strategy instructions
Trading agent generated from recommendation idea 'Middle East conflict escalates — park your money in defense contractors for safety'. Thesis: When geopolitical conflicts escalate suddenly, governments immediately reassess their defense budgets and military readiness. The U.S. airstrike on Iranian facilities signals a potentially prolonged engagement in the Gulf. As investors dump risky tech stocks, capital typically rotates into defense companies that provide drones, surveillance, and munitions. Companies like Lockheed Martin and RTX Corp offer a defensive hedge in a volatile, war-footing market.
Performance
No trade count, win rate, or realized P&L figures are provided in this public preview. The thesis and shared rules do not establish a performance record.
What this public preview can establish
- The thesis and strategy approach describe a market view. They do not show whether an entry or exit condition is currently met.
- Technical strategy fields are shared above. Inspect the actual conditions and check when they were evaluated before relying on them.
- No trade count, win rate, or P&L figure is published in this preview. It cannot establish a performance record.
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