Formal Name: Argentine Republic
Local Name: Argentina
Local Formal Name: República Argentina
Trend Following Investment Research
Trend Following Investment Research is a publisher of trend following trading strategies reaching thousands of investors globally. Our unique edge is an extensive network within trend following, behavioral economics and risk management. This allows us to teach decades of outstanding performance. Our approach is to provide customers with a single product requiring no extra purchase. Delivering a comprehensive service of trading systems, risk management strategies and psychological guidelines allows our customers to trade in less than thirty minutes per day. Giving us your money is giving us your trust. And our goal is always to make sure that what we give you is more valuable than what you give us. That straightforward business principle is the foundation of our long-term relationship with all clients.
Trend Following Podcast
Our highly ranked podcast Trend Following now reaches over one hundred eighty-eight countries with over 3.5 million listens. Guests (all guests) include world-class thinkers, psychologists, economists and traders.
Why Argentina Demonstrates Trend Following’s Global Relevance
Argentina is one of the most instructive case studies in the world for why systematic trend following across global markets is not optional for serious traders. The country has experienced multiple sovereign debt defaults, hyperinflation episodes that destroyed the purchasing power of the Argentine peso, currency controls that severed the peso’s relationship to international markets, and equity market crises that produced catastrophic losses for domestic buy-and-hold investors. Each of these episodes produced large, sustained price trends in Argentine financial assets, global commodity markets connected to Argentina’s export economy, and the currencies that Argentine capital flows affected.
Argentina is the world’s third-largest soybean exporter and a major producer of corn, wheat, beef, and other agricultural commodities. Policy decisions in Buenos Aires, including export taxes, planting restrictions, and currency devaluations, produce sustained price trends in global agricultural futures markets that systematic trend following captures regardless of the political dynamics behind them. The 2001-2002 Argentine default produced currency moves, commodity price dislocations, and capital flow effects that systematic approaches positioned correctly for, not because they predicted the default but because they followed the price movements the default produced.
The broader lesson for global trend following traders is that the world’s most economically volatile countries produce the clearest, most sustained price trends. Argentina’s currency has been in a persistent trend of devaluation against hard currencies for decades. Argentine inflation has produced sustained commodity price trends. Each crisis that fundamental analysts struggled to model and predict produced the exact price dynamics that systematic trend following is built to capture.
For Argentine traders and investors specifically, systematic trend following across global futures markets provides the structural hedge that holding domestic peso-denominated assets cannot. A systematic approach that trades global currencies, bonds, commodities, and equity indices in hard currency-denominated instruments is insulated from the purchasing power erosion that holding Argentine pesos produces. The same approach that global systematic managers use to capture trend-driven profits provides Argentine-based investors with the currency diversification and asset class diversification that their domestic market cannot offer.
Frequently Asked Questions
How does trend following apply to Argentine financial markets?
Argentine financial markets produce the large, sustained directional moves that systematic trend following is designed to capture. Currency devaluations, inflation-driven commodity price trends, and capital flow effects from Argentine policy decisions all produce persistent price trends in global futures markets. A systematic approach that reads price and follows trends captures these moves without requiring the trader to predict Argentine political or economic outcomes.
Why is Argentina relevant to global commodity trend followers?
Because Argentina is one of the world’s largest exporters of soybeans, corn, and wheat. Policy decisions affecting Argentine agricultural exports produce price trends in global agricultural futures. Systematic trend following in agricultural commodities will be positioned in the direction of these moves when they occur, not because the system predicted Argentine policy but because it follows price in whatever direction it moves.
Can Argentine traders benefit from learning trend following?
Yes, and arguably more than traders in more stable economies. Trading global futures markets in hard currency-denominated instruments using systematic rules provides Argentine-based traders with diversification from the peso’s chronic devaluation, exposure to global trends rather than only domestic ones, and the rule-based discipline that volatile domestic market conditions make even more important. The approach requires less than thirty minutes per day to implement once the system is built and tested.
Trend Following Systems
Want to learn more and start trading trend following systems? Start here.
