A daily, rule-based oil-focused strategy using RSI momentum signals on oil ETFs (notably UCO, BNO, DBO) to time entries and hedges, with a nested set of conditions and a fixed allocation when signals fire; high leverage and energy exposure, rebalanced every day.

RSI stands for Relative Strength Index. It’s a momentum measure that compares recent gains to losses to indicate if an asset has been overbought (likely to fall) or oversold (potential bounce). This strategy runs every trading day and checks RSI values on several oil-related ETFs: - Primary path focuses on UCO (ProShares Ultra Bloomberg Crude Oil, a high-leverage bet on oil prices). If UCO’s RSI over short windows (10, 14, 20 days) hits certain low thresholds (e.g., under 14, 18, 22), the algorithm allocates the full oil exposure to UCO. - If those RSI thresholds aren’t met, the strategy follows a more complex set of checks under an “Oil Buy Signal” group. These checks involve RSI on other assets (like BNO, DBO, and a separate condition involving EEM) and other signals (for example, a moving-average price condition on DBO). When these conditions are satisfied, the system may allocate to BNO, DBO, or keep a cash-equivalent weighting within the oil sleeve. - There are also hedging/alternative instruments in play (e.g., SCO, the inverse oil ETF) to manage downside or alternative scenarios. All decisions are evaluated with a fixed 100/100 weighting in the chosen oil position when a signal fires, and the overall balance within the oil group is adjusted daily. The intent is to capture oil-price momentum while managing risk through hedges and alternate oil instruments.

Oil-momentum strategy offers energy-cycle alpha and diversification beyond the S&P 500, with hedges and disciplined timing on oil ETFs. Note: out-of-sample results were negative; consider as a satellite, not core allocation, with risk controls.