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FIN4018-无代写
时间：2022-12-07
FIN4018 semester 1 (2022-23)
StockTrak Trading Simulation Project
A. Introduction
This is your final term project and is expected to be both fun and enlightening, and
helpful for future real-life investment. Each student will register one StockTrak
account which is funded with an imaginary cash balance of HK$1,000,000 for a trade
simulation of how the financial market actually works. This is an individual work and
marks are awarded to individual’s trading activities and a final report.
The main objective of the simulation project is for you to learn how to interact with
the financial markets, and to formulate and execute appropriate trading/investment
strategies and decisions to maximize your account’s return over the specified trading
horizon. However, the amount of trading profits is not the sole assessment criteria.
The aim is to put into practice the major topics we cover. It is the decision-making
process and the application of trading strategies that are important part of your
learning experience.
The trading simulation will run from 3 October until 18 November 2022 (7 weeks for
the trading horizon). As you go through the Module in the following weeks, you will
learn the skills and trading strategies that you can apply in the simulated market
environment. You will learn how to identify potential profitable trading opportunities.
It is essential that you do a lot of analysis and research work and use recent news
articles before making a trade decision since we all want to be a well-informed trader
and investor, not just based on hunch or following the crowd. You may need to
understand the past price behavior of the stock (its personality and trends) you are
going to trade. Sometimes you need to wait for profitable opportunity to emerge.
You will learn from every trade you made, whether they are profitable or losing, and
prepare yourself for the next trading opportunity.
B. About Stock-Trak
Stock-Trak is a provider of virtual trading platform for teaching and learning purposes.
The StockTrak platform operates like a real brokerage account. It is wed-based and so
you can log in from everywhere. It accepts orders 24 hours through logging in their
trading portal. Stock orders or trades placed outside the normal trading hour of the
exchange will be processed when the exchange starts trading in the next business day.
There is no cutoff time for currency trades except during weekends. For US stocks, it
provides execution on real-time intra-day prices. For Hong Kong stocks, no real-time
trading is offered at this moment and you can only buy or sell on the next EOD
closing prices, that is no order placement for HK stocks.
C. Trading Rules of the Simulation Project
1. Securities universe for trading
✓ Each student is assigned with a stock watchlist which consists of FIVE US
2
stocks. These stocks are among the largest and most established stocks
in the S&P 500 (refer to an attached list). You have to make trades
(identify buy and sell opportunities) from any of those 5 stocks only.
Account values and transaction amounts will be denominated in Hong
Kong dollars.
✓ You are not allowed to trade outside your assigned stock watchlist.
2. Position limit
Your account value will be denominated in HKD.
The maximum amount of position you can open in a single stock is
HK$500,000 equivalent.
3. Other constraints
1) No leveraged or margin trading
2) You have to Short Sell at least one stock. The cash proceeds from short
selling will be held in collateral and cannot be used for further buying.
Margin requirement is not counted but keep an eye on your open short
position because unfavorable price movement may lead to substantial
loss. Stop loss order must be in place.
3) Day trading is not allowed, i.e., buy or sell and then close the position
within the same trading day is not allowed.
4) For every trade you make, with limit or market order, it must be
accompanied by trading notes (see below for requirement)
5) Commissions (transaction costs) are charged at a flat HK$400 per
transaction, i.e. for every buy and every sell transaction
6) Idle cash will receive no interest.
Note: Liquidation is not required on the last day of the trading period. Take profits or
cut loss on any position if it is necessary. Any outstanding positions not covered by
the end of the trading period will be automatically valued at the closing prices at the
end of the trading period. Profits or losses are then calculated.
D. Evaluation and Assessment
❖ Though the aim for the trading simulation is to generate the highest trading
profits, the primary objective is not just on return performance or the
amount of profits but on the learning experience. Marks are awarded based
on several areas:
completion of the required tasks (or called assignments) within
StockTrak
whether all trading rules are strictly followed
rationale behind each trade decision and how well you integrate what
you learn in this module into your decisions and analysis
quality of the trading notes
3
summary of periodic position reports
quality of the written analysis report
your performance relative to the other students in this class
E. Project Grading
The full mark for this simulation project is 100 marks and accounts for 60% of your
final grade in this module.
20% - StockTrak assignments
There are several StockTrak assignments which require you to
complete some tasks within StockTrak. You have to complete within
the specified deadline.
15% - Summary of position report
Provide weekly summaries of your positions (long/short, open and to
be opened) for the last three weeks of the trading period. This report
(a template is provided) will also include your reviews and comments.
As you trade, you should stay alert, monitor and track your
performance and strategies implementation. At the least, you have to
keep a close eye on your open positions and profit/loss status. The
market is hectic and good or bad information will arrive any time. You
have to respond and review: take profits, cut loss or add positions. You
can download the relevant trading reports for reference (Open
Position, Close Position and Transaction History) directly from
StockTrak in the form of Excel spreadsheets.
10% - Trading return performance
At the end of the trading period, your trading performance is
evaluated relative to other students in the class. Refer to the marking
matrix below regarding the 2 measures of performance (max 10
marks)
Quintile
1
Quintile
2
Quintile
3
Quintile
4
Quintile
5
% Return 2.0 3.0 4.0 5.0 6.0
Sharpe Ratio 0.5 1.0 2.0 3.0 4.0
5% - Miscellaneous
How well rules and instructions are followed; quality (not quantity) of
trading notes; activity within your account (although there is not a
required number of trades for this project, I think you will learn more
by being active investors over the entire simulation period and willing
to try out different strategies).
50% - Written analysis report
At the end of the trading period, you are required to write a short
report analyzing one of your stock/trade. The written report should
meet the appropriate professional and academic standards, such as
style, structure and format. You may analyze a stock that you have
4
bought and sold many times (several trades) or you just analyze one
particular trade (from open position to close position). This
stock/trade analysis should focus on the most profitable or losing one.
F. Trading Notes
In StockTrak, the input of trading notes before you trade or place order is mandatory.
The content of the note should be the reason (explanation) for each trade action and
the comments. Some examples,
“from the daily chart, there is bullish signal as the stock price has rallied through the
previous resistance level of $12.50, with yesterday’s close well above this level and
the momentum is strong, RSI trending up from the 50 to 60 levels and market
sentiment is good”.
“A limit buy order is placed at $5.80 which is strong support level, as determined by
the recent trend line and price pattern.”
“a market order is placed to buy the stock immediately at the market as the $20.80
level seems not to be touched with strong market buying, the 50-day moving average
is trending up”.
In the Trading Notes input box of StockTrak, a maximum of two lines of written notes
are allowed which is roughly around 45 words.
G. Written Report
Include (at least) the following sections in your report:
SCETION A: Overview of trades
Company: name of the company (and stock ticker symbol)
Trade history: (example)
Open
(price and date)
Close
(price and date)
Quantity Net P/L % Return
1 Long $20.20
(11/03)
Sell $21.00
(09/04)
10000 $7,600 3.76%
2 Short $22.0
(15/03)
Cover $19.5
(18/03)
15000 $37,100 11.2%
Total $44,700
*or you just mention one trade
SECTION B: Stock analysis
a. Business description – Briefly describe the business of the company, its
products and services. You will need one paragraph on this.
5
b. Fundamental factors – Briefly discuss its fundamental factors using for
examples, ratio analysis, trend analysis and/or peer analysis. Show that the
fundamentals are sound or not sound (you may consider certain timeframe)
that would affect your trading view/strategy formulation.
c. Stock performance – Discuss the past performance of the stock (such as
historical trading range). Illustrate with at least two charts of prices over time:
one for long term (>= 1 year) and one for short term (<1 year). Also discuss
briefly both the overall long term and short-term performance/price behavior.
d. Recent significant news and events and its impact on stock performance –
Provide recent news articles or other printed research information (excerpt).
Explain the reaction (or expected reaction) of stock price to the news or event
and why do you think the stock price will go up or down in the coming period.
You may also mention the prevalent macroeconomic, financial market and
industry-specific news that may have affected the stock price.
SECTION C: Discussion of your trading strategies employed
For every trade decision of entry or exit you make, it must be based on appropriate
strategies to maximize return. Describe:
• Your strategy or mix of strategies used
• Basis of your trade decision (supported with screen captures of
annotated charts, showing the trading signals, entry and exit levels etc.
or other relevant data)
• The execution (use of order types)
• How you cope with the market volatility and risk factors
• Have you adjusted your strategy, price target or stop loss over the
course of trading?
SECTION D: Conclusion
This is the evaluation of the success of your trades and implementation of the
strategies, and your reflection. Discuss (for examples):
• How successful is your strategy, as expected?
• If it is not successful, what have gone wrong?
• What have you learned from your trading simulation experience?
• What will you do differently and what, if anything, do you want to
think about further?
it is recommended that you keep all the relevant evidence supporting your trade
decision, for example the trading notes, the charts, related news articles etc.
Demonstrate professional writing style and format including referencing sources
within the report to avoiding plagiarism.
The due date for the two reports (written analysis report
and summary of position report in pdf format) is 12 Dec 2022.
6
H. Rubrics for the Written Analysis Report
1. Knowledge and analysis (40%)
a. integration of knowledge and skills, analysis displayed good
understanding of the topics
b. information and analysis are accurate and complete.
c. rationales for entry and exit, and positions are correct and well
explained.
d. arguments supported with evidence
2. Writing quality (40%)
a. structure is clear and logical
b. well formatted
c. free of syntax errors
d. graphs and exhibits are effectively used, and references are adequate
3. Evaluation of outcomes and reflection on the experience are well written and
personal insight included (20%)
I. Additional Information
What to do during the trading period
Because of time constraint in this simulation, you are to generate profits during
the trading period that is just 7 weeks long. You may have to focus on some
kinds of short-term trading, market timing. In reality, you can trade and execute
your strategies in different timeframes.
Your investment/trading style could be some mix of technical and fundamental
Remain informed regarding the current economic and political events and keep
up with the latest development in the finance community.
Some free and helpful websites (you are free to use and explore others)
- charting and technical analysis
https://stockcharts.com
https://www.tradingview.com
https://finance.yahoo.com
http://www.freestockcharts.com/
- economic data and analysis
https://tradingeconomics.com/
- stock and market research, news
https://www.stocktrak.com/
https://www.valueline.com/
https://www.zacks.com/
https://finance.yahoo.com
https://www.bloomberg.com/
StockTrak Trading Simulation Project
A. Introduction
This is your final term project and is expected to be both fun and enlightening, and
helpful for future real-life investment. Each student will register one StockTrak
account which is funded with an imaginary cash balance of HK$1,000,000 for a trade
simulation of how the financial market actually works. This is an individual work and
marks are awarded to individual’s trading activities and a final report.
The main objective of the simulation project is for you to learn how to interact with
the financial markets, and to formulate and execute appropriate trading/investment
strategies and decisions to maximize your account’s return over the specified trading
horizon. However, the amount of trading profits is not the sole assessment criteria.
The aim is to put into practice the major topics we cover. It is the decision-making
process and the application of trading strategies that are important part of your
learning experience.
The trading simulation will run from 3 October until 18 November 2022 (7 weeks for
the trading horizon). As you go through the Module in the following weeks, you will
learn the skills and trading strategies that you can apply in the simulated market
environment. You will learn how to identify potential profitable trading opportunities.
It is essential that you do a lot of analysis and research work and use recent news
articles before making a trade decision since we all want to be a well-informed trader
and investor, not just based on hunch or following the crowd. You may need to
understand the past price behavior of the stock (its personality and trends) you are
going to trade. Sometimes you need to wait for profitable opportunity to emerge.
You will learn from every trade you made, whether they are profitable or losing, and
prepare yourself for the next trading opportunity.
B. About Stock-Trak
Stock-Trak is a provider of virtual trading platform for teaching and learning purposes.
The StockTrak platform operates like a real brokerage account. It is wed-based and so
you can log in from everywhere. It accepts orders 24 hours through logging in their
trading portal. Stock orders or trades placed outside the normal trading hour of the
exchange will be processed when the exchange starts trading in the next business day.
There is no cutoff time for currency trades except during weekends. For US stocks, it
provides execution on real-time intra-day prices. For Hong Kong stocks, no real-time
trading is offered at this moment and you can only buy or sell on the next EOD
closing prices, that is no order placement for HK stocks.
C. Trading Rules of the Simulation Project
1. Securities universe for trading
✓ Each student is assigned with a stock watchlist which consists of FIVE US
2
stocks. These stocks are among the largest and most established stocks
in the S&P 500 (refer to an attached list). You have to make trades
(identify buy and sell opportunities) from any of those 5 stocks only.
Account values and transaction amounts will be denominated in Hong
Kong dollars.
✓ You are not allowed to trade outside your assigned stock watchlist.
2. Position limit
Your account value will be denominated in HKD.
The maximum amount of position you can open in a single stock is
HK$500,000 equivalent.
3. Other constraints
1) No leveraged or margin trading
2) You have to Short Sell at least one stock. The cash proceeds from short
selling will be held in collateral and cannot be used for further buying.
Margin requirement is not counted but keep an eye on your open short
position because unfavorable price movement may lead to substantial
loss. Stop loss order must be in place.
3) Day trading is not allowed, i.e., buy or sell and then close the position
within the same trading day is not allowed.
4) For every trade you make, with limit or market order, it must be
accompanied by trading notes (see below for requirement)
5) Commissions (transaction costs) are charged at a flat HK$400 per
transaction, i.e. for every buy and every sell transaction
6) Idle cash will receive no interest.
Note: Liquidation is not required on the last day of the trading period. Take profits or
cut loss on any position if it is necessary. Any outstanding positions not covered by
the end of the trading period will be automatically valued at the closing prices at the
end of the trading period. Profits or losses are then calculated.
D. Evaluation and Assessment
❖ Though the aim for the trading simulation is to generate the highest trading
profits, the primary objective is not just on return performance or the
amount of profits but on the learning experience. Marks are awarded based
on several areas:
completion of the required tasks (or called assignments) within
StockTrak
whether all trading rules are strictly followed
rationale behind each trade decision and how well you integrate what
you learn in this module into your decisions and analysis
quality of the trading notes
3
summary of periodic position reports
quality of the written analysis report
your performance relative to the other students in this class
E. Project Grading
The full mark for this simulation project is 100 marks and accounts for 60% of your
final grade in this module.
20% - StockTrak assignments
There are several StockTrak assignments which require you to
complete some tasks within StockTrak. You have to complete within
the specified deadline.
15% - Summary of position report
Provide weekly summaries of your positions (long/short, open and to
be opened) for the last three weeks of the trading period. This report
(a template is provided) will also include your reviews and comments.
As you trade, you should stay alert, monitor and track your
performance and strategies implementation. At the least, you have to
keep a close eye on your open positions and profit/loss status. The
market is hectic and good or bad information will arrive any time. You
have to respond and review: take profits, cut loss or add positions. You
can download the relevant trading reports for reference (Open
Position, Close Position and Transaction History) directly from
StockTrak in the form of Excel spreadsheets.
10% - Trading return performance
At the end of the trading period, your trading performance is
evaluated relative to other students in the class. Refer to the marking
matrix below regarding the 2 measures of performance (max 10
marks)
Quintile
1
Quintile
2
Quintile
3
Quintile
4
Quintile
5
% Return 2.0 3.0 4.0 5.0 6.0
Sharpe Ratio 0.5 1.0 2.0 3.0 4.0
5% - Miscellaneous
How well rules and instructions are followed; quality (not quantity) of
trading notes; activity within your account (although there is not a
required number of trades for this project, I think you will learn more
by being active investors over the entire simulation period and willing
to try out different strategies).
50% - Written analysis report
At the end of the trading period, you are required to write a short
report analyzing one of your stock/trade. The written report should
meet the appropriate professional and academic standards, such as
style, structure and format. You may analyze a stock that you have
4
bought and sold many times (several trades) or you just analyze one
particular trade (from open position to close position). This
stock/trade analysis should focus on the most profitable or losing one.
F. Trading Notes
In StockTrak, the input of trading notes before you trade or place order is mandatory.
The content of the note should be the reason (explanation) for each trade action and
the comments. Some examples,
“from the daily chart, there is bullish signal as the stock price has rallied through the
previous resistance level of $12.50, with yesterday’s close well above this level and
the momentum is strong, RSI trending up from the 50 to 60 levels and market
sentiment is good”.
“A limit buy order is placed at $5.80 which is strong support level, as determined by
the recent trend line and price pattern.”
“a market order is placed to buy the stock immediately at the market as the $20.80
level seems not to be touched with strong market buying, the 50-day moving average
is trending up”.
In the Trading Notes input box of StockTrak, a maximum of two lines of written notes
are allowed which is roughly around 45 words.
G. Written Report
Include (at least) the following sections in your report:
SCETION A: Overview of trades
Company: name of the company (and stock ticker symbol)
Trade history: (example)
Open
(price and date)
Close
(price and date)
Quantity Net P/L % Return
1 Long $20.20
(11/03)
Sell $21.00
(09/04)
10000 $7,600 3.76%
2 Short $22.0
(15/03)
Cover $19.5
(18/03)
15000 $37,100 11.2%
Total $44,700
*or you just mention one trade
SECTION B: Stock analysis
a. Business description – Briefly describe the business of the company, its
products and services. You will need one paragraph on this.
5
b. Fundamental factors – Briefly discuss its fundamental factors using for
examples, ratio analysis, trend analysis and/or peer analysis. Show that the
fundamentals are sound or not sound (you may consider certain timeframe)
that would affect your trading view/strategy formulation.
c. Stock performance – Discuss the past performance of the stock (such as
historical trading range). Illustrate with at least two charts of prices over time:
one for long term (>= 1 year) and one for short term (<1 year). Also discuss
briefly both the overall long term and short-term performance/price behavior.
d. Recent significant news and events and its impact on stock performance –
Provide recent news articles or other printed research information (excerpt).
Explain the reaction (or expected reaction) of stock price to the news or event
and why do you think the stock price will go up or down in the coming period.
You may also mention the prevalent macroeconomic, financial market and
industry-specific news that may have affected the stock price.
SECTION C: Discussion of your trading strategies employed
For every trade decision of entry or exit you make, it must be based on appropriate
strategies to maximize return. Describe:
• Your strategy or mix of strategies used
• Basis of your trade decision (supported with screen captures of
annotated charts, showing the trading signals, entry and exit levels etc.
or other relevant data)
• The execution (use of order types)
• How you cope with the market volatility and risk factors
• Have you adjusted your strategy, price target or stop loss over the
course of trading?
SECTION D: Conclusion
This is the evaluation of the success of your trades and implementation of the
strategies, and your reflection. Discuss (for examples):
• How successful is your strategy, as expected?
• If it is not successful, what have gone wrong?
• What have you learned from your trading simulation experience?
• What will you do differently and what, if anything, do you want to
think about further?
it is recommended that you keep all the relevant evidence supporting your trade
decision, for example the trading notes, the charts, related news articles etc.
Demonstrate professional writing style and format including referencing sources
within the report to avoiding plagiarism.
The due date for the two reports (written analysis report
and summary of position report in pdf format) is 12 Dec 2022.
6
H. Rubrics for the Written Analysis Report
1. Knowledge and analysis (40%)
a. integration of knowledge and skills, analysis displayed good
understanding of the topics
b. information and analysis are accurate and complete.
c. rationales for entry and exit, and positions are correct and well
explained.
d. arguments supported with evidence
2. Writing quality (40%)
a. structure is clear and logical
b. well formatted
c. free of syntax errors
d. graphs and exhibits are effectively used, and references are adequate
3. Evaluation of outcomes and reflection on the experience are well written and
personal insight included (20%)
I. Additional Information
What to do during the trading period
Because of time constraint in this simulation, you are to generate profits during
the trading period that is just 7 weeks long. You may have to focus on some
kinds of short-term trading, market timing. In reality, you can trade and execute
your strategies in different timeframes.
Your investment/trading style could be some mix of technical and fundamental
Remain informed regarding the current economic and political events and keep
up with the latest development in the finance community.
Some free and helpful websites (you are free to use and explore others)
- charting and technical analysis
https://stockcharts.com
https://www.tradingview.com
https://finance.yahoo.com
http://www.freestockcharts.com/
- economic data and analysis
https://tradingeconomics.com/
- stock and market research, news
https://www.stocktrak.com/
https://www.valueline.com/
https://www.zacks.com/
https://finance.yahoo.com
https://www.bloomberg.com/
