Crude Oil Algo Strategy

Crude oil futures on 6-hour bars: buy pullbacks when close is above the 100-bar average but near the range low (stochastic-style filter); shorts mirrored.

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: 360 minute bars, 6 hour bars
  • Markets: Crude Oil, Futures

Indicators used

  • Average (Moving Average)
  • Range (Highest High - Lowest Low)

Source video

Decoded from: Algo Crude Oil Strategy by Algo Trading With Kevin Davey — watch the original

Key timestamps:

  • 0:44 - Strategy Factory process overview
  • 2:02 - Goals and objectives for strategy development
  • 3:45 - Crude oil and futures market discussion
  • 4:20 - Strategy idea: trend and pullback components
  • 5:00 - Long entry condition based on 100-bar average close
  • 5:40 - Long entry condition based on close's position in recent range
  • 6:30 - Short entry conditions (symmetric)
  • 7:00 - Stop and reverse system mentioned
  • 7:15 - Tradestation code explanation
  • 8:15 - Limited feasibility testing
  • 9:00 - Optimization variables and timeframe
  • 10:00 - Robustness discussion
  • 11:00 - Walk forward testing
  • 13:00 - Monte Carlo simulation
  • 14:00 - Incubation period

Strategy overview

A moving average smooths price into a single line that stands in for trend direction — the concept hub covers the mechanics. What makes this entry unusual among its siblings is that the average is not the starting point: it arrives as an output of a process. The source video, "Algo Crude Oil Strategy" from Algo Trading With Kevin Davey, spends its first four minutes on method rather than on any indicator — an overview of the presenter's Strategy Factory workflow, then a segment on setting goals and objectives for the development effort, then a discussion of crude oil and the futures market. The strategy idea itself is not introduced until after all of that groundwork.

When the idea does appear, it is framed as two components rather than one signal: a trend piece and a pullback piece. The trend side leans on a long-horizon average of closing price; the pullback side asks where the current close sits inside a recent high-to-low range — a position-in-range reading rather than a bounded oscillator. That pairing is a familiar shape in systematic futures work, where the average answers "which way" and the range answers "how far in". The entry is filed on 360-minute bars — six-hour bars — a coarse frame that sits between intraday and swing horizons, and unlike most siblings in this concept, the instrument is named before the tools are: crude oil futures.

Honest notes on what is and is not here. The filed chapter list runs to 5:40 and stops mid-enumeration of the long-entry conditions, so only the long side is documented and no short-side segment, exit logic, results or walk-forward discussion appears in the timestamps. No test period, sample window or dataset is stated despite the development framing, and no mechanical rules were decoded from this source — this page covers the concept and the video's structure, not a rule-by-rule reconstruction.

Topics

crude oil strategy · algo trading strategy · futures trading strategy · 6 hour strategy · trend following strategy · moving average strategy · pullback strategy · technical indicators · trading strategy · pine script · tradingview strategy · crude oil futures strategy

Frequently asked questions

What is a trend-and-pullback strategy?

It is a two-part structure: one component establishes the prevailing direction — commonly a long-lookback moving average — and a second component waits for price to retrace against that direction before entering. The average answers which way to trade, the pullback measure answers when. The source video introduces the idea in exactly those two pieces.

What is the Strategy Factory process mentioned in the video?

Strategy Factory is Kevin Davey's own name for his systematic strategy-development workflow. The video opens with an overview of it and follows immediately with a segment on defining goals and objectives before a trading idea is chosen — the process comes first and the indicator selection follows from it. The video itself is the reference for how that workflow is defined.

Why would an algo strategy use 6-hour bars on crude oil?

Coarser bars like the 360-minute (6-hour) frame filed here produce far fewer signals than typical intraday charts, which reduces noise and transaction costs but also means each trade carries more weight and positions are held across sessions. It is a common compromise in futures work for ideas that are directional rather than reactive. Note that the source video does not state a test period or dataset for this timeframe choice.

Are the exact entry rules for this strategy available?

No mechanical rules were decoded from this source, and the filed chapters cut off partway through the long-entry discussion — so this page describes the concept and the video's structure rather than a complete rule set. Strategy Decoder extracts strategy structure from video sources where it can be established; the original video remains the reference for anything beyond what is documented here.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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