# Momentum-Based Trading Strategies in Crude Oil ETFs And Futures

> Research on momentum-based trading strategies in crude oil ETFs and futures, developing long-short models yielding up to 19.9% annualized returns over an 18-year testing period.

- Author: Eugene Pinsky, Siddhant Shah
- Published: 2025-09-01
- Canonical URL: https://siddhants.com/research/momentum-crude-oil-trading/
- Published in: Technical Analysis of Stocks & Commodities 43(9): 20–23, September 2025

## Abstract

This research explores momentum-based trading strategies applied to crude oil ETFs and futures markets. We developed long-short models that capitalize on price momentum patterns, achieving annualized returns of up to 19.9% over an 18-year testing period.

## Methodology

Our approach combines technical analysis with quantitative modeling to identify momentum signals in crude oil markets. The strategy utilizes:

- **Long-Short Framework**: Systematically identifying entry and exit points based on momentum indicators
- **Risk Management**: Implementing position sizing and stop-loss mechanisms
- **Backtesting**: Rigorous historical testing over 18 years of market data

## Key Results

- **Annualized Returns**: Up to 19.9% over the testing period
- **Market Conditions**: Strategy performance across various market regimes
- **Risk-Adjusted Performance**: Analysis of Sharpe ratios and maximum drawdowns

## Implementation

The trading system was implemented using Python with extensive backtesting on historical ETF and futures data. Performance metrics were validated across multiple market cycles.

## Conclusion

Momentum-based strategies demonstrate consistent alpha generation potential in crude oil markets when properly implemented with robust risk management protocols.

## Publication Details

**Published in**: Stocks & Commodities Magazine (September 2025)  
**Authors**: Shah, S., & Pinsky, E.

## Disclosure

The views expressed here are my own personal opinions. This is **not investment advice** and should not be relied upon as such. Nothing here is connected to, endorsed by, or written on behalf of Rosenblatt Securities.

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