The Friday Seasonality in USO (Oil) – Weekly Trends

One famous seasonality in the oil market is the tendency for the oil price to rise on Fridays. Let’s see the Friday seasonality in the oil price.

Trading Rules

[am4show have=’p2;p3;p58;p59;p130;p138;’ user_error=’Premium Post Access’ guest_error=’Premium Posts’]

We buy the day before – Thursday.

It seems like just buying on any Thursday’s close is not such a good idea. It works better if Thursday is a down day.

I get the following result if buying on the close of a Thursday if USO falls at least 0.75 times the 25 day average of the H-L (high minus low) and exit on Friday’s close:

[/am4show]

Data is from inception in April 2006 until the present.

Here is the equity chart:

All other days seem to be more of a random pattern.

FAQ:

– How is the Friday seasonality strategy applied in the oil market?

The strategy involves buying on the day before Friday, which is Thursday. Specifically, it works better if Thursday is a down day in the market.

– Is buying on any Thursday’s close a good approach for the Friday seasonality strategy?

Buying on any Thursday’s close may not be the most effective approach. It tends to work better when Thursday’s performance is down, indicating the importance of market conditions.

– What are the results of applying the Friday seasonality strategy to the oil market based on historical data?

The strategy yielded a profit and loss (P/L) of 56.96% with a total of 98 trades, out of which 60 were winners. The average profit per trade was 0.58%.