The breaking of the Nationalbank of Schweiz – A Black Swan ?

— A Special Edition —

 

On the 15th January 2015 the Switzerland National Bank – SNB – has decided to get out from his 1.2 EUR/CHF defending line. It means that the CHF could be stronger as much as the market is deciding. I am confident that you could read a lot about this subject in many economical newspapers. But Engineering Investments would like to share with our faithful readers about several important subjects on this special event.

As the 1.2 EUR/CHF has been fixed as a bottom line for defending the Switzerland export, then the market participations have just opened many Buy orders, when the EUR/CHF has been traded near this price line. It means the buyers “know” that they could not lose too much… therefore this line has been strong till the heads of SNB have understood, that if they will not say no more 1.2 EUR/CHF line now, then later on it would be a bigger price movement much more than we have seen on the 15th January !

To see how big is this price movement, i think an one picture is more than 1000 words…

 

For all the market participations this big event is absolute a black swan. But, as you have seen at Engineering Investments Engineering Investments High Gain Managed Account. has gained about 70% during the Black Swan event ! How ?

 

To get into the full understanding of how a black swan could be a good event, we have to understand that our Algorithmic-Trading is usually making gain by trading against the market direction. But for this special event you have to also read our latest article on the 10.01.2015, which had discussed exactly about this subject !

 

Moreover, as a professional forex trader and along the high volatility of the GBPCHF i had to stop several times the algorithm and to open a sell order on the GBPCHF, which has being opened over a long time, just because the intuitive of a professional trader has shown about an absolute abnormal situation !

 

Engineering Investments is not saying that we have found the holy-grail, but only that we are always minimize the overall risk and maximize the gain for achieving the best high gain investments over the time !
 

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