Assignment:
"It is time to get rich! You and your colleagues are convinced that you can make it happen by setting up a hedge fund. In order to attract potential investors to invest their money into your fund, your team decides to establish a trading record showing how good your team and your trading strategies are. The trading period starts today (March 6, 2013) and ends on May 21, 2013. Your team chooses Stocktrak company as your broker firm. (Please follow the link https://www.stocktrak.com/public/members/registrationstudents.aspx?p=Tongji-Fin-2013 to open your account). Of course, life is always tough-there are several other teams out there trying to do the same thing. At the end of the trading period, you will give a presentation to your potential investors. The presentation includes but is not limited to:
(1) What's the objective of your hedge fund, such as the target return and risk level, the maximum risk, type of trading securities?
(2) How do you control your risk?
(3) What's your trading strategy? What are the advantages and disadvantages of your trading strategy?
(4) How do you evaluate your fund performance? What's your benchmark?
(5) Have you reached your goals setup in the first step?
(6) Why is your fund a better investment opportunity than other funds?
In this tournament competition, Your score will be based on several aspects:
1) Team performance, which includes (a) how well your team applies the techniques (b) How well your team implements the trading strategy (c) Final written documents (d) Presentation, including asking and answering questions (e) the ranking of your team (f) evaluation from other teams
2) Individual performance, which is from the evaluation of your team members based on your contribution to your team.
Each team consists of 3-4 team members. In this tournament, you are allowed to trade equities in Euronext, NYSE, and Shanghai Stock exchange. It permits short selling as well as margin trading.