BFC3340 – Trading Assignment
Trading Assignment代写 OverviewThis individual assignment requires you to trade spot and derivatives for profits using StockTrak, a virtual trading platform
Due date: 11 October 2019
Overview Trading Assignment代写
This individual assignment requires you to trade spot and derivatives for profits using StockTrak, a virtual trading platform that allows simulated trading with real-time market data. The aim is to provide exposure to close to real world trading experience while testing your understanding of the various derivative instruments covered in the course.
You are required to join two trading sessions on StockTrak:
- BFC3340_MockTrading Trading Assignment代写
The first trading session is for practice and does not count towards assessment. The second trading session is for assessment.
Details are as follows:
|Registration||29 Jul – 10 Aug 2019||29 Jul – 12 Aug 2019|
|Trading||29 Jul – 11 Aug 2019||12 Aug – 11 Oct 2019|
The time is Melbourne time.
How to join Trading Assignment代写
In case you do NOT have a StockTrak account,
- Go to
- Choose BFC3340_MockTrading from “Challenge” drop downmenu
- Completethe For Contest Password, enter “roguetrader”. For login information, you can choose your username and password, but be sure to use Monash student email for field “Email Address”.
- Once the registration is completed, click Go Back to return to the platform.
- Click“Find New Contest”. You should see a list of all contests available for joining.
Click BFC3340_TradingGame and enter password roguetrader to join the challenge.
In case you ALREADY have a StockTrak account,
- Go to monash.stocktrak.com and log in.
- Repeatstep 5 above to join both BFC3340_MockTrading and BFC3340_TradingGame both using password roguetrader.
Note the trading period in the above table.
Instructions Trading Assignment代写
- First, quickly register for the two trading sessions within the timeframe.
- Then,start practice trading with Use this practice trading to familiarise yourself with StockTrak and formulate trading ideas.
- Whenthe trading period commences, start trading in BFC3340_TradingGame for assessment.
- Thisis an individual However, you may (or may not) wish to discuss your trading ideas with your classmates.
- With an initial capital of $1,000,000, you are required to conduct 5 round-trip futurestrades(each roundtrip consists of an opening trade and a closing trade) and 5 round- trip option trades (again, each roundtrip consists of an opening trade and a closing trade). Opening and close of say a bull spread would be considered 2 roundtrip trades. If a position remains open at the time the trading game ends, the trade is NOT considered a round-trip.Trading Assignment代写
- You may want to trade more than the above, but it isnot a requirement.
- You cannot trade outside the trading period.
- Foreach opening trade, you are required to complete a trade note which clearly but briefly state and justify your view. Example:
- “goldhas had a strong run lately, time for correction – short gold ”
- “Trumpsigning of steel tariffs provided clarity to market, expect marketwide volatility to drop – short VIX”
- “Iphonesales disappointed, expect selloff in Apple continues – long bear spread in AAPL”
- Foreach closing trade, you are required to complete a trade note which comments on the outcome of the trade. Example:
- “Closeposition as stop loss has been Lost 10K. Happy that trading plan was followed through”
- “Closeposition to take Made 50K. Happy that trading plan was followed through”
- “Closeposition as the loss has exceeded Not a good trade as the bet didn’t work out and I did not place a stop loss order.”
- You can trade in any of the Equities, Futures, Options, Futures Options and spot markets as you see in StockTrak. Your trading will take place on the US stock marketsand the CME Group exchanges (CME, NYMEX, COMEX and CBOT) due to availability of various instruments.
- Beware of the different time zones between the markets and Melbourne time. For example,when the trading period commences, Melbourne will be 14 hours ahead of the US Eastern time.
- Key trading parametersare Trading Assignment代写
- Positionlimit (maximum percentage of portfolio value that can be invested in one security): 10%
- Maximum fill order: 50% of daily volume.
- Short selling:allowed
- Margintrading (i.e. use purchased securities as collaterals to borrow and trade more): not allowed
- Maximum number of trades: 200 (I don’t want you to getaddicted!)
Learning to trade in StockTrak
- StockTrakhas a series of videos to help you navigate around the platform and
They are under Videos tool. The following are must-watch videos:
- Siteoverview (showing how to get information on your trading and portfolio, as well parameters set for this trading game)Trading Assignment代写
- Tradingspots (if you want to trade currencies and commodities in spot markets).
- Research tools: extremely important. It shows you where to research information on a particular stock, sector or market. Essentially, clicking on Quotes,then quotes, you will see a number of tabs: Markets, Quotes, Trade etc. Markets is the tab to research on market indices, futures contracts, spot rates, interest rates… The rest of the tabs is for stock-specific research.
- Thereis a large selection of useful articles in the “Learn Centre” on Click on All Articles then search for a specific topic. Must-read articles are: Futures Trading FAQ, Options Trading FAQ.
- Althoughtechnical analysis (ie. charting) is not covered in this course, it can be a useful tool for timing the market. You may want to self-study this topic. Click on Beginner’s Help on the left hand side, you will see Technical analysis under Advanced topics on the right hand side.
What you should do Trading Assignment代写
- Familiarise yourself with StockTrak.
- Think about trading ideas and strategies. Which underlying assets do you know and/or have a view about their direction or volatility? If you want to bet on the direction, use futures, spot, short selling and option spreads (and maybe outright options).If you want to bet on volatility, use option strategies such as straddle and strangle.
- Thinkabout how you gather information about that underlying Utilise the info available in StockTrak.
- What is your exit strategy? You may want to work out a price point at which you wouldexit to limit losses, BEFORE you enter the It is good practice to place a stop loss order in the market immediately upon execution of the initial trade. Markets can move quickly and unexpectedly. Having stop loss order means that you will automatically be taken out of the market when the stop is triggered.Trading Assignment代写
- On the other hand, try to allow your profits to run. When you are in profit, it is often advisable to move your stop-loss accordingly. For example, you bough gold futures at1250 and place a stop loss order at 1190 (which allows you to exit if it drops below 1190). After a few days, the price goes up to 1350, you may want to move up your stop loss order to exit at say The stop-loss point can be chosen by studying the price chart.
– Regularly monitor your portfolio and the markets.
Avoid common mistakes. Follow a disciplined trading approach
In order to have a rewarding learning experience, please be aware of some common mistakes from early semesters:
- Ensure you use your correct student ID and email address whenregistering
- Manageyour Do not execute large trades, as these can easily result in large losses
- Tradingnaked options is highly Also it is a bet on both volatility and price. So don’t be surprised if long call can lose money when spot goes up.Trading Assignment代写
- Acommon reason a trade is not executed is lack of liquidity: check that you have not placed a big trade with volume exceeding half of the market volume on that day.
Impossible to know actual volume in advance but you can avoid deep out-of-the- money options or derivatives with little open interest.
This assignment is marked to 10 and contributes to 10% of overall assessment. The marking scheme is as follows
- Upto 5 marks will be awarded on the basis of your Sharpe ratio ranking and total return ranking. The two criteria receive equal weight.
- 5 marks for traders with ranking in the top10%
- 4marks for traders with ranking in the 71th-90th percentiles
- 3marks for traders with ranking in the 51th-70th percentiles Trading Assignment代写
- 2marks for traders with ranking in the 21th-50th percentiles
- 1 mark for traders with ranking in the 1th-20thpercentiles
- 0 mark fornon-traders
- Upto 2 marks will be awarded on the basis of Specifically 0.5 mark is added for each underlying asset you traded, to a maximum of 2 marks. For example, gold, crude oil, Tesla, Google, S&P500 index, GBP/USD, Eurodollar each is considered a unique underlying asset.
Up to 3 marks will be given for the quality of trade notes.
- 3marks: all trade notes for opening trades clearly but briefly state and justify your view on the market AND the trade is consistent with the view. All trade notes for closing trades state the outcome and reflect on the trade
- 2 marks: most trade notes for opening trades clearly but briefly state and justify your view on the market AND the trade is consistent with the view. Trading Assignment代写Mosttrade notes for closing trades state the outcome and reflect on the trade.
- 1mark: some trade notes for opening trades clearly but briefly state and justify your view on the market AND the trade is consistent with the Some trade notes for closing trades state the outcome and reflect on the trade.
- 0 mark: Most trade notes are meaningless.
- Markswill be deducted for failing to conduct at least 5 roundtrip futures trades and at least 5 roundtrip option trades, or if the email account used for the registration is not a vaslid Monash account.
What to submit
- I will obtain your trading records directly fromStockTrak.
Having a question? Trading Assignment代写
- Contact StockTrak for IT related questions (e.g. I can’t log inStockTrak)
- Contactmyself for assignment related questions (e.g. is this the right strategy to short volatility?)