Fence painting to preserve

What is the best thing to paint a fence, to stop it from rotting?
A friend paints his fencing with old engine oil. My fence is starting to rot, its around 4 years old. I painted it with a coloured fence paint when I built it and again a couple of years later.
It is in a shaded area.
Would varnish seal the wood better, instead of the water based wood paint? I dont have a long fence, only about 15 feet long

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