Oh no! Where's the JavaScript?
Your Web browser does not have JavaScript enabled or does not support JavaScript. Please enable JavaScript on your Web browser to properly view this Web site, or upgrade to a Web browser that does support JavaScript.

Python example that demonstrates how to trade crude oil

Last updated on 9 days ago
K
KevinMember
Posted 9 days ago
Here's a basic Python example that demonstrates how to trade crude oil using a strategy based on moving averages. This code uses historical data and does not place real trades but is structured similarly to how algorithmic traders might backtest crude oil strategies using libraries like pandas and yfinance.

Crude Oil Trading Strategy (Python Sample Code)
* Strategy: Buy when the short-term MA crosses above the long-term MA.
* Instrument: Crude Oil Futures (e.g., CL=F on Yahoo Finance)
Requirements
bash
pip install yfinance pandas matplotlib

---
Code Example
python
<div class="code_bbcode"><div class="clearfix m-b-5"><strong>Code</strong><a class="pull-right m-t-0 btn btn-sm btn-default" href="../../includes/bbcodes/code_bbcode_save.php?thread_id=176&post_id=424&code_id=0"><i class="fa fa-download"></i> Download source</a></div><pre><code class="language-php">[code]import yfinance as yf
import pandas as pd
import matplotlib.pyplot as plt
# Load historical crude oil data (CL=F is crude oil futures on Yahoo Finance)
ticker = 'CL=F'
data = yf.download(ticker, start='2022-01-01', end='2025-01-01')
# Calculate moving averages
data['SMA50'] = data['Close'].rolling(window=50).mean()
data['SMA200'] = data['Close'].rolling(window=200).mean()
# Define trading signals
data['Signal'] = 0
data.loc[data['SMA50'] > data['SMA200'], 'Signal'] = 1
data.loc[data['SMA50'] < data['SMA200'], 'Signal'] = -1
# Compute strategy returns
data['Returns'] = data['Close'].pct_change()
data['Strategy_Returns'] = data['Signal'].shift(1) * data['Returns']
# Plot
plt.figure(figsize=(14, 7))
plt.plot(data['Close'], label='Crude Oil Price', alpha=0.5)
plt.plot(data['SMA50'], label='SMA50')
plt.plot(data['SMA200'], label='SMA200')
plt.title('Crude Oil Trading Strategy (SMA Crossover)')
plt.legend()
plt.grid()
plt.show()
# Summary
cumulative_returns = (1 + data['Strategy_Returns']).cumprod()
print("Final Strategy Return: {:.2f}%".format((cumulative_returns.iloc[-1] - 1) * 100))</code></pre></div>[/code]

Notes
* You can switch CL=F to other crude oil ETFs like USO for more liquid instruments.
* This is **not a live trading bot**. For real trading, integrate with brokers like Alpaca, Interactive Brokers, or MetaTrader.
* You can expand the strategy with stop-losses, risk management, or machine learning.
You can view all discussion threads in this forum.
You cannot start a new discussion thread in this forum.
You cannot reply in this discussion thread.
You cannot start on a poll in this forum.
You cannot upload attachments in this forum.
You cannot download attachments in this forum.
Sign In
Not a member yet? Click here to register.
Forgot Password?
Users Online Now
Guests Online 5
Members Online 0

Total Members: 18
Newest Member: 7yborg