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Fin 645 - Assign 1 - FTP

The document outlines an assignment for students to create a futures trading plan. It provides guidance on the necessary components of the plan, including performing technical and fundamental analysis on various futures contracts from October 2021 to February 2022 using the Bursa Market Place trading platform. Students are instructed to choose a trading strategy, identify entry and exit price points, and justify their analysis with evidence from technical indicators, fundamental news/reports, and expert opinions. The document emphasizes generating profits from competitive futures trading over the assigned period.

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Jalni
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1K views20 pages

Fin 645 - Assign 1 - FTP

The document outlines an assignment for students to create a futures trading plan. It provides guidance on the necessary components of the plan, including performing technical and fundamental analysis on various futures contracts from October 2021 to February 2022 using the Bursa Market Place trading platform. Students are instructed to choose a trading strategy, identify entry and exit price points, and justify their analysis with evidence from technical indicators, fundamental news/reports, and expert opinions. The document emphasizes generating profits from competitive futures trading over the assigned period.

Uploaded by

Jalni
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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FIN 645

INDIVIDUAL ASSIGNMENT ONE


FUTURE TRADING PLAN (FTP)
SEMESTER OCT 2021 - FEB 2022
INTRODUCTION

• The goal of each of you is to trade futures competitively in order, to generate a profit
larger than others using Bursa Market Place Trading Platform.
• Trading starts in OCT 2021, but you may want to begin conservatively to avoid costly
mistakes.
• Each of you should be a leader who will ensure responsibilities to be carried out all
necessary task as a futures traders.
• You also should clear on Future Trading Plan including the STRATEGY, ENTRY PRICE,
TAKE PROFIT (target profit/resistance line), STOPLOSS (target loss/support line) for
decision making.
FUTURE TRADING PLAN (FTP) = (20%)

• You are more likely to be successful if your trading strategy includes one or more of the following
methods:
• 1. Technical Analysis
- Charting Candlestick (Trading View Software)
- Bull Market / Bear market / Trendlines / Support and Resistance
- Technical indicators – MA , MACD, STOCHASTIC RSI, VOL, HEIKEN ASHI
• 2. Fundamental Analysis
- Refer Chapter 13
- The Edge online / Starbiz online – look news (positive / negative news)
(period : SEPT 2021 – DEC 2021)
• 3. Expert Opinion (Professional Investor / Fund Manager / Future Traders )
- The Edge / Starbiz / WALL STREET JOURNAL , EBOOKS/ WEBSITE
TYPES OF FUTURES TRADING
(BURSA MARKET PLACE GAME)
• 1. FCPO – COMMODITY FUTURES ,
• 2. FKLI – INDEX FUTURES ,
• 3. FGLD – COMMODITY FUTURES
• 4. FM70 – INDEX FUTURES
TECHNICAL ANALYSIS
- (TRADING VIEW)
• Technical Analysis which uses mostly past prices (but can also use volume and open
interest), is the most widely used method by professional commodity fund managers.
• As a starting point to understanding and implementing technical trading systems to your
strategy, your group will need to complete some reading.
• To identify BULL market/ Bear Market trendlines.
• Examples of 5 tools/ indicators;
- Moving average 13/20, MACD, Stochastic RSI , Heiken Ashi, Support & Resistance ,
TRADING PLAN 1
FUNDAMENTAL ANALYSIS

• Fundamental Analysis (news / catalyst analysis) is also a popular trading method. Major current
sources of day to day fundamental analysis are The Edge, The Starbiz, Bernama Online, Investors Digest,
wire services and government reports (both general economic and commodity specific).
• But, perhaps most important is anticipating future political, economic and weather factors.
• For example: (1) if war breaks out and drives up palm oil futures prices; or
(2) the economy plunges into a recession driving down the KLCI, thus driving palm futures
prices down; or
(3) severe El Nino weather phenomenon is more likely to cause palm oil prices to climb as
nearby supplies tighten.
• (4) Covid 19 -
FUNDAMENTAL ANALYSIS
( SEPT 2021 – DEC 2021)
• ECONOMY ANALYSIS
• SECTORAL / INDUSTRY ANLAYSIS
• COMMODITY ANALYSIS
• PALM OIL MARKET ANALYSIS
• COMPANIES ANALYSIS
• STOCK MARKET ANALYSIS (KLCI)
EXPERT OPINION
(OLD )
• Expert Opinion- approach seeks to use the advice of well-respected experts as a basis
for trading decisions and trading strategies.
• For example, knowledge from market newsletters, trade publications and prominent
research analysts and economists are often used as a basis for trading decisions.
• These can also be found on internet but many traders view "experts“.
• Get two sources the expert onion from the website available.
• The expert should relate to the future trading strategies. Summarize the articles
EXPERT
OPINION
EXPERT
OPINION
CONCLUSION

• TRADING PLAN 1 : FCPO DEC 2021


• TECHNICAL -
• HEIKEN ASHI = GREEN / UPTREND/ MAJOR TREND: BULLISH
• TIME FRAME : Daily. -

• FUNDAMENTAL –
1. Tight supply set to keep CPO prices up in August — analysts (11.8.2020)
2. Malaysia Sept Palm oil stocks seen easing on export surge (5.10.2021)

• Position : Long
• ENTRY: 5006
• TAKE PROFIT :5016
• STOPLOSS: 4950
REPORT CONTENTS

• Front page
• Introduction – Trading Plan & Strategies on Futures/Options
• Contents
• TA ( explanation + justify + evidence) VOL, STOCHASTIC RSI, HEIKEN ASHI, MACD, MA
• FA ( explanation + justify + evidence) (5 stories/news)
• EO (explanation + justify + evidence) (2 sources)
• Conclusion (TRADING PLAN 1 – 30)
• References
• Appendices
REPORT FORMAT & SUBMISSION

• A4
• 1.5 spacing
• Arial , Size 11

• Turn it in checking? < 30%


• Declare assignment

• Submit in google classroom


• Week 7/8

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