Public trading strategy
Middle East strikes send oil prices surging — grab energy stocks before the spik
Thesis
Fresh military strikes are threatening an already fragile ceasefire in the Middle East, putting global oil supplies at risk. When geopolitical conflicts threaten to disrupt the world's oil supply, the price of crude naturally spikes as fear of shortages sets in. Energy stocks and oil funds tend to climb rapidly alongside the price of crude oil, offering a direct way to trade this escalating crisis.
Strategy approach
Build a rule-based strategy that enters long USO on the 4-hour (H4) timeframe when the price breaks above its upper Bollinger Band (20, 2) and the MACD line crosses above the signal line. Hold for up to 10 days, using a 4% trailing stop to protect gains.