Public trading strategy
Explosion rocks Qatar's massive LNG hub — buy natural gas as supply takes a hit
Thesis
Qatar is one of the world's largest exporters of liquefied natural gas, and the Ras Laffan site is the heart of its operation. A sudden explosion and shutdown at such a critical facility instantly removes a massive amount of natural gas supply from the global market. When supply suddenly drops but demand stays the same, prices for natural gas usually spike. Investors will likely rush to buy natural gas stocks and funds to profit from the resulting price surge.
Strategy approach
Build a rule-based strategy that enters long UNG on the 1D timeframe when the current price breaks above the highest high of the previous 10 trading days (Donchian channel breakout). Exit the position if the price falls 5% from the entry price, or after a maximum hold of 21 days.