Formal Name: Federative Republic of Brasil
Local Name: Brasil
Local Formal Name: República Federativa do Brasil
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 Brazil Is Significant for Global Trend Following Traders
Brazil is the world’s largest economy in Latin America and one of the most important commodity-producing nations on the planet. As the world’s largest exporter of soybeans, sugar, coffee, orange juice, and beef, Brazil’s agricultural output and policy decisions produce price trends in global commodity futures markets that systematic trend following is positioned to capture. Currency volatility in the Brazilian real, driven by commodity cycle swings and domestic political dynamics, produces sustained directional moves in currency futures. Each of these markets is accessible to systematic traders worldwide regardless of whether they are based in Brazil.
Brazil’s financial history provides some of the most instructive examples of why systematic approaches that respond to price rather than predict fundamentals are essential in emerging market contexts. The country experienced hyperinflation that reached over 2,000% annually in the late 1980s and early 1990s, multiple currency crises and reforms, and equity market cycles that produced both spectacular gains and devastating losses. Each of these episodes produced large, sustained price trends that systematic approaches following price signals captured, while fundamental analysts struggled to model the rapidly changing policy environment.
The BM&FBovespa, now B3 following its merger, is one of the largest stock exchanges in the world by market capitalization. Brazil’s commodity futures markets, particularly those tied to agricultural exports and energy, are deeply liquid and globally interconnected. Price movements in Brazilian commodity markets ripple through global futures markets in Chicago, London, and elsewhere. A systematic trend follower trading global commodity futures is trading Brazilian price signals whether they realize it or not.
For Brazilian traders and investors specifically, systematic trend following across global futures markets provides diversification from the Brazilian real’s volatility and from the concentrated commodity exposure of the domestic equity market. A rule-based approach that trades global currencies, bonds, equity indices, and commodities in hard currency-denominated instruments is not dependent on Brazilian inflation remaining contained, the real remaining stable, or any single commodity cycle continuing. The system responds to wherever price trends materialize, which includes but is not limited to Brazilian markets.
The thirty-minutes-per-day implementation standard is particularly relevant for Brazilian practitioners given the time zone difference from major global futures market closes. A systematic approach that uses end-of-day data rather than intraday monitoring can be implemented entirely around the major market closes without requiring constant attention to live prices during Brazilian business hours.
Frequently Asked Questions
How does Brazil’s commodity economy connect to global trend following?
Brazil is among the world’s largest exporters of soybeans, sugar, coffee, orange juice, and beef. Policy decisions in Brasilia, weather events in the Mato Grosso, and currency moves in the real all produce price trends in global agricultural and currency futures markets. A systematic trend follower trading these markets does not need to analyze Brazilian agriculture or politics. The system follows price, which reflects all of these factors as they develop.
Why is Brazil relevant to currency trend following?
Because the Brazilian real is one of the most volatile major emerging market currencies. Its value relative to the US dollar and other major currencies is driven by commodity cycles, domestic inflation differentials, and capital flow dynamics that produce sustained directional trends. Systematic trend following in currency futures that includes the real captures these trends when they materialize. The system does not need to predict Brazilian monetary policy to be correctly positioned when the real moves.
Can Brazilian traders implement trend following around their time zone?
Yes. A systematic approach based on end-of-day data for global futures markets can be implemented in less than thirty minutes per day using closing prices from the previous session. The major global futures market closes in Chicago and London occur during Brazilian business hours or evening hours, making end-of-day systematic trading practical for Brazilian-based practitioners without requiring overnight monitoring.
Trend Following Systems
Want to learn more and start trading trend following systems? Start here.
