Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

Gentle Reminder: Once in a while, there will be a BlackSwan

51 sec read

Believe me, it is tough to deal with the social consequences of the appearance of continuous failure. We are social animals; hell is other people.Nassim Nicholas Taleb, The Black Swan: The Impact of the Highly Improbable
Argentine Merval Index – Daily Chart
Crash From All-time high levels.

This time it is Argentina Merval Index. On 12th Aug 2019, Merval Index collapsed more than 37.93% post-Argentine election surprise. The argentine stock market moved lower by 11% soon after trading opened for the day

Argentine Merval Index : 34% Intraday Crash post-election surprise
Merval Index : 1min charts


Argentina’s peso shed nearly 23% and shoot up to a high of 62 against the dollar with an intraday loss of around 30% which is later followed by a pullback towards 55.79 levels.

Reuters reported that ” Argentina’s central bank used $50 million in its own reserves, for the first time since September last year, to intervene in the foreign exchange market and defend the peso in the face of a massive sell-off “

Argentina PESO Crashed against dollar

However, for Merval Index 10% crash is not a new thing. This is the third attempt to close more than 10% down since 2011. However, the election results turn out to be a black swan event crashing the index more than 34 plus percent.

Argentine Merval Daily Charts

It is a Gentle Reminder from merval index that once in a while, there will be a BlackSwan. Get yourself prepared in the future.

Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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