u/jawanda ·
Reddit — r/algotrading
· April 19, 2026 at 14:57
· ⬆ 16 pts
· 💬 14 comments
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AI Summary
Summary
The author built an algorithmic trading bot that scrapes news headlines to trade Brent Oil based on whether the Strait of Hormuz is open or closed.
A second iteration of the bot monitors the broader Iran conflict, waiting specifically for a "de-escalation" signal to trigger an aggressive long position on the S&P 500.
Quality assessment: Speculation. This is a basic LLM-driven sentiment analysis strategy deployed by a retail trader, lacking rigorous backtesting or latency-advantage data.
Score16
Comments14
Upvote %94%
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Monitors headlines. Strait of Hormuz open -> Short brentoil, Hormuz closed -> Long brentoil.
Trading on hyperliquid hip-3 XYZ.
That's the whole strategy basically (+tp and sl). Wish I would've done it a few weeks ago.
Thoughts? 😁😬
Edit: Just spun up a second version of the bot, this time just to gauge the current "status" of the Iran war in general, either Escalating or De-escalating. Same exact setup, grab the 10 latest headlines, feed them to AI with specific instructions to evaluate whether the war is escalating or de-escalating, and get feedback like this from 5 minutes ago:
>{
>"time": "2024-05-20T14:30:00Z",
>"conflict\_status": "ESCALATING",
>"decision\_logic": "The conflict is escalating because the US Navy has fired on and seized an Iranian-flagged vessel, Iran has explicitly rejected peace talks, and aggressive rhetoric continues with Trump threatening to 'knock out' Iranian power plants."
>}
This version is JUST waiting for a "de escalating" signal (since markets might slowly climb DESPITE bad news in Iran, but will CERTAINLY surge on good news) and then will go aggressively long on S&P500 (because that's what I have access to via Hyperliquid / Hip-3). I know this is nothing revolutionary, standard sentiment analysis stuff, but it's my first time trying to trade based on news events and I'm having fun with it. Which sounds awful seeing as this is a real war with real lives at stake but ... it's gonna happen whether I try to scrape a few pennies from the situation or not.
The Strait of Hormuz is a critical global oil chokepoint highly sensitive to geopolitical news. Headline sentiment regarding the strait's status directly correlates with immediate crude price action. Use an automated news scraper to short oil when the strait is open and long oil when it is closed. Whipsaw from unverified news, latency disadvantages against institutional algos, and false LLM parsing.
Broader equity markets are currently weighed down by escalating geopolitical tensions in Iran. Markets may slowly climb despite bad news, but will surge rapidly on a definitive peace or de-escalation catalyst. Wait for the AI sentiment tracker to confirm a "de-escalating" status, then go aggressively long on the S&P 500. False de-escalation signals, or broader macroeconomic factors (rates, earnings) dragging the market down despite peace.
This Reddit post, published April 19, 2026,
features u/jawanda
discussing BNO, SPY.
2 trade ideas extracted by AI with direction and confidence scoring.