...Software Requirements Specification for Stock Market Simulator Version 1.0 approved Prepared by Divesh Mirchandani, Abhishek Oturkar, Sumit Kriplani, Kedar Nadkarni 30-01-2015 Table of Contents Table of Contents ii Revision History ii 1. Introduction 1 1.1 Purpose 1 1.2 Document Conventions 1 1.3 Intended Audience and Reading Suggestions 1 1.4 Product Scope 1 1.5 References 2 2. Overall Description 2 2.1 Background 2 2.2 System Context 2 2.3 System Capabilities 3 3. Behavioural Requirements 4 3.1 System Inputs & Outputs 4 3.2 Detailed Output Behaviour 4 3.3 Software Interfaces 4 3.4 Communications Interfaces 4 4. Quality Requirements 12 5. Fundamental Assumptions 12 6. Expected Changes 12 7. Appendices 13 Introduction 1 Purpose To fully document the expected functionality and requirements for our Stock Market Simulation Game. 2 Document Conventions • Concept of Operations gives a user-oriented, high-level overview of our Stock Market Simulator. • Behavioral Requirements gives a more-detailed vision of the simulator's operations, which is better suited to developers and those interested in the technology. 3 Intended Audience and Reading Suggestions The set of stakeholders includes the team members, the project and overseeing managers, and potential users of our stock market simulation. • Team Members - can use this document to gain a detailed understanding...
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...focused on being broad cost leaders, and we were aggressive. During the practice rounds, we did not do well because of our lack of knowledge of the simulation and also did not really take the time to make appropriate decisions. When the real decisions started, we wanted to be broad cost leaders; dominant in all segments of the market, which included: Baker, Bead, Bid, Bold and Buddy. We were profitable, because we were competing against the other teams in all segments of the market. For this reason, we were able to compete against everyone and had captured 25.75% of the market share at the end of decision six. Additionally, we used an aggressive strategy; one of the ways in which we were aggressive was by taking on short-term debt. This strategy was more risky because we depended on sales to repay debt. If our sales forecasts had been wrong and we had not sold as much as we wanted, our team would have not been profitable because we would have not been capable of paying our short-term debt. Due to the lack of team communication, we forgot to confirm our decision so the computer made the decision for us. As a team, we met and discussed exactly how we wanted to come back from the first decision. We decided to read the manual and make sure that each of us knew exactly how the simulation worked. Furthermore, we discovered that the simulation provided different strategies on how to play the game. We utilized our new knowledge in order to make profitable decisions. After decision one,...
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...Project Number: DZT0517 Stock Market Trading An Interactive Qualifying Project Report Submitted to the faculty of the Worcester Polytechnic Institute in partial fulfillment of the requirements for the Degree of Bachelor of Science by ___________________________________________ Meng-Yu Ni Date: August 2006 Approved by: __________________________ Professor Dalin Tang Project Advisor 1 Abstract Using the information from the internet and published books, a general understanding about stock market and trading strategies was obtained. The knowledge and trading strategies were applied in the market in a stock market simulation to get real-time trading experience. Experiences learned from using trading methods in this simulation will help me to become a better investor in the future. 2 Acknowledgement First, I want to thank my parents who gave me the opportunity to study at Worcester Polytechnic Institute in USA. Second, I would like to thank my advisor, Dalin Tang, who gave me advices, and help me during this whole project time. Thirdly, I want to thank Worcester Polytechnic Institute for giving me opportunity to do this project, which made me to learn more things from outside of classes by myself. Finally, I would like to thank all the people who gave me some help when I needed it. 3 Table of contents Abstract ........................................................................................................................... 2 Acknowledgement...
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...decisions in a computer-based, mutual-fund-investing simulation. Each student performed the simulation by him/herself. The goal was to better understand why investors spend so much time and money on actively managed mutual funds despite the majority of those funds being outperformed by passively managed index funds (at least in recent years). The researchers hypothesized that the illusion of control would lead students to overestimate their future portfolio returns from actively selecting mutual funds and that anchoring and adjustment would influence investment decisions. (Recall that illusion of control suggests that decision makers value choice even when predicting random events outcomes for which they have no valid cues.) Most participants consistently overestimated the future performance of their investments consistent with the illusion of control. The researchers hypothesized that anchoring and adjustment would influence portfolio allocation decisions. The students were more likely to change their portfolio allocation following poorer fund performance than better fund performance, a tendency which had a negative impact on portfolio returns. The researchers attributed this to students anchoring on past performance (expecting both poor and good fund performances to continue) as they made allocation decisions. The students reported that they had an average of $20,500 of their own money invested in stocks and mutual funds and that they had been investing...
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...Executive Summary With the unpredictable markets that have occurred in the past few months there truly was no need to go to any amusement park because no ride could take you on as many bumps, twist and drops that this economy has taken us investors on. The Stock-Trac Simulation was a great educational tool which gives beginners in the online trading world basic knowledge and tools to help succeed in the “world’s largest casino”. Today’s world is globalized and what makes a smart investor is someone who knows all about the different and diverse markets and companies of the world. For this assignment we had to invest in different companies and exchanges from all around the globe. Since we were new to investing, this project seemed to be a little overwhelming at first glance and we knew we needed some assistance in researching domestic and international markets. By using Yahoo Finance and Google Finance, we got the help and resources needed to create a diversified portfolio investing in bonds, futures, and stocks. Everyday as we would do our research on certain stocks and other investments, we continued to notice frightening downward trends in world exchanges from NYSE to Shanghai Stock Exchange. We knew before we began trading that there was high volatility in today’s market and it seemed to be causing unpredictable changes in price. These trends were causing havoc on the markets and many companies ending up going bankrupt or were on their last life line. Since this was a short...
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...One portfolio for life? | ------------------------------------------------- Top of Form Bottom of Form Written by Paul Merriman and Richard Buck | September 23, 2005 | Many do-it-yourself investors want solutions they can implement once, then leave alone. Can individual investors adopt a strategy that's so good it will meet their needs from age 21 to 91? In this article, FundAdvice.com Publisher Paul Merriman and Managing Editor Richard Buck tell why they think the answer is yes. Much of the work we do is focused on helping individual investors find just the right combinations of assets and forms of investment ownership (IRAs, taxable accounts and the like) to meet their individual needs. Since everybody’s financial situation is unique and usually evolving, we are not big fans of one-size-fits-all solutions. We spend lots of time helping each person determine his or her risk tolerance. This is one of the most valuable things professional advisors do for their clients. But we know that in real life many investors do not have professional help. Realistically, many do-it-yourself investors simply don’t take the time to adjust their investments to their changing needs and tolerance for risk. We know that many people want solutions they can set up once and then forget about. We can't ever know in advance what the very best strategy will be. But here's an interesting question: Is there a single portfolio that will do a good job of meeting the needs of investors for...
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...SECTION: 3 GROUP: 3 INVESTMENT SIMULATION PROJECT NORTH SOUTH UNIVERSITY INVESTMENT SIMULATION PROJECT PREPARED FOR Saif Rahman (SfR) Lecturer COURSE: FIN 435 SECTION: 03 GROUP: 03 PREPARED BY NAME | ID | Md. Sarwar Hossain | 0930068030 | Fatima Tuz Zahra | 0930785530 | Ahmed Aman Yousoof | 0930274530 | Yakin Reza | 0930042030 | Naima Rahman | 0930283030 | Date of Submission: August 08, 2012 TABLE OF CONTENTS | | | Executive Summary | 03 | Introduction | 04 | Objective | 04 | Asset Allocation | 05 | Macroeconomic & Industrial Scene | 07 | Diversification | 07 | Trading Strategies & Economic Rationale for Selecting Stocks | 07 | Portfolio Performance | 10 | Holding Period Return | 13 | Portfolio Risk & Return | 14 | Security Market Line | 15 | Lessons Learned from Trading | 16 | Conclusion | 17 | References | 18 | Appendix | 19 | Executive Summary The investment simulation project is a fictitious investment in the Dhaka Stock Exchange that started from June 4, 2012 and ended on August 01, 2012 over a period of two months and separated in three phases. The initial investment in the portfolio was around BDT 1,000,000. The objective of the project was to maximize the after tax wealth through a well diversified portfolio. Given the consistent market fall at the Dhaka Stock Exchange since our investment...
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...things you learned and came to understand about the stock market and how it functions. The Stock Market Game was an informative introduction to economics and the world of investing money. Starting out with $100,000, we were eventually able to make $9055.73 with a +9.06% return, placing 136th out of 852 teams. Through the simulation, I learned that stock statistics of companies do not reveal everything, successful investments require in-depth research and patience, and diversification of stocks is important to keep investments balanced. As I played the Stock Market Game, I realized that looking solely at the stock’s statistics, such as 52wk range, Earnings Per Share (EPS), and Price-Earnings Ratio (PE), did not accurately predict the current direction of the stock’s price. More often, I used the statistics to determine whether the investment would be good in the long run, as opposed to stocks which might do well...
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...Conducting Event Studies on a Small Stock (Bartholdy , Olson and Peare (2007)) Research Question In the study, the authors want to examine the efficiency of event studies when this methodology is applied to thinly traded stocks. The event studies are usually conducted to see whether abnormal price changes can be detected. The contribution of the authors are in thin traded stocks context. Assumptions: In the study, for application of one methodology author assumed that the returns are normally distributed and there is no cross-sectional dependence between stock returns. The simulation study for event days are implemented by assuming uniform distribution. Methodology and Data The methodology involves the use of CAPM model to estimate the returns of stocks. The stock portfolio is composed of 10, 25 and 50 stocks. Because of thin trade stock motivation the trade to trade adjustment was made. The estimation is based on 250 trading days total and 247 of this period corresponds to parameter estimation and the rest, t-1, t, t+1 is used for event study. The parameter estimations were based on OLS with heteroskedasticity correction. The abnormality is detected by analyzing difference between market return and expected return from CAPM model. Returns for event days are the subjects of test statistics. The examined statistics were based on t-test with cross sectional independence, t-test with standardized abnormal return and t-test with adjusted standardized abnormal return. These...
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...fund for investment. The research should include investment objectives, economic/market/industry analysis, analysts’ opinions/evaluations, and rationale for buying or selling equities or mutual funds. All of the research tools are available from the home page (see below). There is a menu item (Research Tools) with its own drop-down menu for this purpose. You are going to present your work on the last day of the class and submit one report per group at the end of the semester. Presentation Each group has 10 min. to present (the presentation should be equally divided among group members). Report (max 5 pages) The final report should include your portfolio, its value in addition to the investment objectives, economic/market/industry analysis, analysts’ opinions/evaluations, and rationale for buying/selling, performance evaluation measures, i.e., compared to the others in class, others across the country, and broader market averages, such as S&P 500. Please, do not forget to include your group ID and password to the simulation website. Important Note Before you begin the simulation and actively trading, you should review the materials under the menu item “Learn Trading” on the homepage of the simulation site. You should become familiar with the tools of the trade. There are tutorials available and other materials that will enhance your effectiveness. GUIDE TO THE SIMULATION WEBSITE: The simulation can be...
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...Investment Management Investment Simulation 2 Instructions Objective: The objective of this simulation is to give you some experience in trading with different types of orders. Requirement: You must EXECUTE a minimum of 20 trades (not just place orders) with at least three order executions of each of the available order types You should execute these trades on at least five different stocks available on Virtual Stock Exchange. This simulation is a compulsory requirement for all (INDIVIDUAL ASSIGNMENT) Simulation Game Details: Here are the details to join the simulation game; Simulation Web Site: http://www.marketwatch.com/game/2s2015 Game Name: 2s2015 Password: welcome (Remember to enter the password to join the game) Do understand that you may have to place multiple orders and revise them in order to achieve the minimum numbers of trade of each type as required to complete this assignment. This is because your orders may not get executed depending on the specified trigger. Report: Submit a report showing the various types of orders executed. Please follow the format given below: This report is due on 21 July, 2015 (through email). (Report Format) Simulation: 2 Investment Management Student name: xxx Reg. No.: xxx Member of the Group No: xxx 1. Trades Order Type Stock Ticker Placed Volume Value Executed Volume Value Buy xxx xxx xxx xxx xxx xxx xxx xxx Buy xxx xxx xxx xxx xxx xxx xxx xxx . . ...
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...Finance 363 Stocktrak Final Report Group 10 Cody Norton, Nick Turner, Shane Siel The stocktrak simulation was very informative. It was interesting to watch the markets with something on the line. My group was in the top 3 much of the semester. Right around the end of the simulation we fell out of the top 3 and finished in the 10th position. We could have tried to change our investment strategy in order to chase the top spot, but in the end we stayed true to our objective. Objective and Strategy Our objective is one that most would consider boring. I would describe myself as a long-term investor. When I actually begin to invest real money in the stock market, I will invest in sound companies that pay a decent dividend. Although the stocktrak simulation took place over a relatively short period of time, we still invested with a long-term horizon in mind. That long-term horizon will produce smaller short-term gains. Our portfolio was constructed with a buy and hold mentality. We tried to avoid being swayed by our emotions and the short-term fads of investors. It was hard to avoid investing in accordance with the predictions of the markets gurus, but in the end I believe our investments were safer because of it. The buy and hold mentality allows us to overlook negative short-term returns with the understanding that the returns will normalize in the long-term. We spread our cash out among a variety of investment vehicles. We planned on placing our funds in...
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...Stock Trak Investment Report [Portfolio Investment Analysis] Portfolio management is an important factor that determines the performance of the portfolio. To perform well in the portfolio, it is not only essential to develop personal investment strategies, but analyzing current financial trend is also vital. Stock Trak is an online portfolio simulation that allows students to try out different investment strategies, and also get a hand on experience in what the real market trading conditions are. By managing the portfolio, I have acquired some new knowledge of investment strategies and also become more familiar with the current market by following closely to the financial headlines. My portfolio composed of only a few specific stocks of some large information technology companies. The main compositions are Apple Inc., Google Inc., and International Business Machines Corp (IBM). By investing different stocks in the same industry, it comes to my attention that even though they are in the similar category, the life cycles of these stocks are still very different. It is interesting to compare and analyze the different progress of those companies, and also to see how different factors affecting the performance of a specific stock and the portfolio as a whole. [Portfolio Performance Analysis] My overall return is 7.92%, which is about average and is a little over performed comparing to the S&P 500 average of 7.71% during the same period of time. Analyzing the historical data...
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...On January 25, 2016, the Stock-Trak simulation program began and my goal of this simulation program was trying to increase the value of the portfolio with minimizing the risk before April 15, 2016, which is the last trading day. Throughout the duration of the assignment, as investing strategies were discussed in class, I began to take more of an academic approach in regard to my investment strategy. I began to not only rely on news articles but I also analyzed company financials, giving me a better picture of the company as a whole. I decided to buy stock in safe, well-established companies that I new would give me a steady profit. That strategy worked pretty well for me, I made a profit with Alibaba, Starbucks and Wal-Mart. I made the biggest profit with Alibaba “ $18,139 and Valeant Pharmaceuticals International Inc “ $20,161, while I made only minimal profit with the others. However, I failed to make a profit with Direxion Daily Russia Bear 3X ETF and Momo Inc, losing a total over $20,000 with each. I decided to take a chance and buy some stock in companies that I was not familiar with and achieved slight success doing so. I used various articles available on Stock Trak such as, Stocks to Watch, The Market Story, and Market Update, as my guide to buying stocks in unfamiliar companies, I received my biggest profit with VS 3X WTI CRUDE at $12,870 and Direxion Daily FTSE China Bear 3X ETF at $12,280. Both of these two stock are 3 X ETF, which seeking a return that is +300%...
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...YORK UNIVERSITY STOCKTRAK REPORT ADMS 3531 N W2012 Eugene Myslinsky 208083420 3/27/2012 Stock-Track Report Eugene Myslinsky - 208083420 For the past three months we have been participating in a Stock-Trak Simulation exercise to experience what it takes to trade in the stock market. In this report, we will explain which strategies I chose to follow, which investments were the most and least successful to my portfolio and lastly, what advice we would give those who are looking to trade with real money. Investment Strategy and Selection The strategy I employed for our Stock-Trak simulation was to diversify our portfolio among different sectors, various stocks with relatively low risk, and stocks which were positively/negatively correlated with other securities in our portfolio. My goal was to make a gain of 10% return on our overall. The policies put in place to achieve my 10% goal are as follow: a) Trading with the exchange trend: Mathematical analysis has shown that equity price changes are mostly random with a small trend component, this is an important pillar of knowledge as this is the only strategy which will give positive results in the long run (usually seen within 4 weeks) b) Cut losses: When faced with a stock that has been underperforming beyond reasonable doubt and expectations it must be cut off in order to protect the return on my portfolio. c) Long Positions are kept until they stop performing well: I’ll hold onto our long or short positions as long as they...
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