3rd Annual Texas A&M 3rd Annual Texas A&M Undergraduate & Graduate Undergraduate & Graduate Foreign Exchange Trading Foreign Exchange Trading

CompetitionCompetition

CompetitionCompetition

The competition is for undergraduate The competition is for undergraduate and graduate finance and business and graduate finance and business majors interested in fundamental majors interested in fundamental trading, technical trading and foreign trading, technical trading and foreign exchange ratesexchange rates

The competition is being coordinated The competition is being coordinated through the Reliant Energy Trading through the Reliant Energy Trading Center, Texas A&M UniversityCenter, Texas A&M University

CompetitionCompetition All questions, concerns and ideas should be All questions, concerns and ideas should be

addressed to:addressed to: Detlef Hallermann – Texas A&M UniversityDetlef Hallermann – Texas A&M University Email: Email: dhallermann@mays.tamu.edudhallermann@mays.tamu.edu

All decisions made regarding questions, All decisions made regarding questions, concerns, penalties and outcome for the concerns, penalties and outcome for the competition are at the discretion of Dr. competition are at the discretion of Dr. Hallermann and are finalHallermann and are final

By entering the competition, students waive By entering the competition, students waive the right to contest penalties or outcome to the right to contest penalties or outcome to any authority outside of the competitionany authority outside of the competition

The CompetitionThe Competition

Competition Time FrameCompetition Time Frame

Sign Up – Sign up begins Thursday Sign Up – Sign up begins Thursday September 20 at 5:00 pm (CST)September 20 at 5:00 pm (CST) GFT WebsiteGFT Website Mays PortalMays Portal

Competition Time Frame:Competition Time Frame: Session 1 – October 1 – October 15 (CST)Session 1 – October 1 – October 15 (CST) Session 2 – October 16 – October 31 Session 2 – October 16 – October 31

(CST)(CST)

Competition Warm UpCompetition Warm Up

If students wish to practice trading before If students wish to practice trading before October 1:October 1: Students are encouraged to learn the DealBook Students are encouraged to learn the DealBook

360 system360 system We encourage students to trade small amounts We encourage students to trade small amounts

as they get comfortable with the system (1 lot). as they get comfortable with the system (1 lot). This is to practice on the system, not to try to This is to practice on the system, not to try to get ahead in the competition.get ahead in the competition.

If students enter trades and gain/lose on those If students enter trades and gain/lose on those trades before the competition:trades before the competition:

It will affect the starting amount for the competitionIt will affect the starting amount for the competition it will not affect their percentage return score for the it will not affect their percentage return score for the

competitioncompetition Thus, it is unnecessary to reset accounts on October 1Thus, it is unnecessary to reset accounts on October 1

Competition ChangesCompetition Changes

This year there are two divisionsThis year there are two divisions IndividualIndividual University University

Universities with a minimum of 10 Universities with a minimum of 10 competitors (combined graduate and competitors (combined graduate and undergraduate) are eligible to compete in undergraduate) are eligible to compete in the university competitionthe university competition

The university with the highest average The university with the highest average return will receive a trophyreturn will receive a trophy

Competition Brackets Competition Brackets & Prize Money & Prize Money

After Session 1:After Session 1: Those having traded less Those having traded less

than five trade strategies than five trade strategies will be removed from the will be removed from the competitioncompetition

After Session 2:After Session 2: The top ten traders will be The top ten traders will be

rewarded prize money rewarded prize money based on their percentage based on their percentage of return among the total of return among the total prize pool.prize pool.

The number of prizes and The number of prizes and the prize pool may be the prize pool may be adjusted upward according adjusted upward according to the number of to the number of competition participantscompetition participants

TradeTraderr

Rate Rate of of

ReturReturnn

Cash Cash WinningWinning

ss

11 20%20% 33.33%33.33%

22 13%13% 21.67%21.67%

33 11%11% 18.33%18.33%

44 9%9% 15.00%15.00%

55 5%5% 8.33%8.33%

66 2%2% 3.33%3.33%

Prize Pool Distribution ExamplePrize Pool Distribution Example

Overall Grand Prize Overall Grand Prize $10,000 GFT FUNDED $10,000 GFT FUNDED

ACCOUNTACCOUNT NOTESNOTES

The overall winner of the Second Annual Texas A&M University Undergraduate & The overall winner of the Second Annual Texas A&M University Undergraduate & Graduate Inter-University FX Competition will have the opportunity to trade an Graduate Inter-University FX Competition will have the opportunity to trade an account at GFT with an initial funding of $10,000 for a total of six months, and GFT account at GFT with an initial funding of $10,000 for a total of six months, and GFT will pay the winner the total net profit, if any, earned in the account in that will pay the winner the total net profit, if any, earned in the account in that timeframe. If there is a net loss, it will be borne by GFT. Normal GFT account timeframe. If there is a net loss, it will be borne by GFT. Normal GFT account opening processes are required, but GFT will retain ownership of the account, and opening processes are required, but GFT will retain ownership of the account, and no withdrawals will be permitted. no withdrawals will be permitted.

The net profit or loss will be calculated from the time and date the account is The net profit or loss will be calculated from the time and date the account is opened until six months from that date, and the customer will be permitted to opened until six months from that date, and the customer will be permitted to trade the account with unlimited round-turn transactions between the two dates, trade the account with unlimited round-turn transactions between the two dates, subject to applicable margin requirements. A round-turn is defined as one subject to applicable margin requirements. A round-turn is defined as one complete trade – a transaction comprising the buying and selling of a standard lot complete trade – a transaction comprising the buying and selling of a standard lot size of 100,000 for one currency pair. The account must be self-traded by the size of 100,000 for one currency pair. The account must be self-traded by the winner and may not be traded by any other person. Base 10 Trading™ transactions winner and may not be traded by any other person. Base 10 Trading™ transactions under the standard lot size of 100,000 will not be permitted. under the standard lot size of 100,000 will not be permitted.

Only one winner will be eligible for this prize. For non-U.S. accounts, the net profit, Only one winner will be eligible for this prize. For non-U.S. accounts, the net profit, if any, will be converted from U.S. dollars in accordance with a then-current if any, will be converted from U.S. dollars in accordance with a then-current exchange rate, as determined by GFT. For tax reporting purposes, a 1099 form exchange rate, as determined by GFT. For tax reporting purposes, a 1099 form may be issued at year-end to a recipient of a net profit. This is not an offer or may be issued at year-end to a recipient of a net profit. This is not an offer or solicitation in any jurisdiction where such an offer or solicitation is not authorized. solicitation in any jurisdiction where such an offer or solicitation is not authorized. GFT reserves the right in its sole discretion to amend, restrict or revoke this offer GFT reserves the right in its sole discretion to amend, restrict or revoke this offer at any time.at any time.

Team Competition Notes Team Competition Notes

University teams will compete for a University teams will compete for a trophy (sorry…no cash)trophy (sorry…no cash)

A university must have ten (10) A university must have ten (10) participants to qualify for the team participants to qualify for the team competition.competition.

Team competition winner is determined Team competition winner is determined by the highest average percentage by the highest average percentage return of the total competing university return of the total competing university team (all competitors for the team are team (all competitors for the team are included in the average calculation)included in the average calculation)

CompetitionCompetitionParametersParameters

Trading Platform: Trading Platform: GFT DealBook FX 360GFT DealBook FX 360

Students will complete trades using a demo Students will complete trades using a demo account starting with $50,000 on the GFT Forex account starting with $50,000 on the GFT Forex Trading Platform: DealBook FX 360Trading Platform: DealBook FX 360

It can be downloaded at their website (more on It can be downloaded at their website (more on this later):this later):

www.gftforex.com/mayswww.gftforex.com/mays NOTE: Make certain that you use NOTE: Make certain that you use

this website versus their main this website versus their main website. Otherwise salesmen will website. Otherwise salesmen will telephone you and potentially drop telephone you and potentially drop your account!your account!

Students may trade any currency pair available Students may trade any currency pair available on the DealBook Platformon the DealBook Platform

Competition Parameters Competition Parameters Required TradingRequired Trading

In each trading session, students will perform a minimum of In each trading session, students will perform a minimum of five (5) trade strategies to be eligible for prizesfive (5) trade strategies to be eligible for prizes

Trading sessions:Trading sessions: Oct 1 – 15 (CST)Oct 1 – 15 (CST) Oct 16 – 31 (CST) Oct 16 – 31 (CST) A trade strategy consists of: A trade strategy consists of:

Entering into a trade or series of trades on a particular currency Entering into a trade or series of trades on a particular currency pairpair

Setting your exit strategiesSetting your exit strategies See strategy examples on the following slideSee strategy examples on the following slide

There is no maximum number of trades per trading sessionThere is no maximum number of trades per trading session

If a student does not complete five trade If a student does not complete five trade strategies per session, they will be dropped strategies per session, they will be dropped from the competitionfrom the competition

Competition Parameters Competition Parameters Strategy ExamplesStrategy Examples

Entering into a trade strategy on a particular currency pair and exiting the Entering into a trade strategy on a particular currency pair and exiting the strategy followed by a subsequent trade in the same currency pair will strategy followed by a subsequent trade in the same currency pair will typically be considered multiple strategies. This will be determined by typically be considered multiple strategies. This will be determined by trade justification given in the student’s trade journaltrade justification given in the student’s trade journal

Example 1: (3 strategies)Example 1: (3 strategies) Day 1: Buy 5 contracts Euro/US$Day 1: Buy 5 contracts Euro/US$ (Open Strategy 1) (Open Strategy 1) Day 2: Sell 5 contracts Euro/US$Day 2: Sell 5 contracts Euro/US$ (Close Strategy 1)(Close Strategy 1) Day 3: Buy 5 contracts Euro/US$ Day 3: Buy 5 contracts Euro/US$ (Open Strategy 2)(Open Strategy 2) Day 4: Buy 5 contracts GBP/US$ (Open Strategy 3)Day 4: Buy 5 contracts GBP/US$ (Open Strategy 3)

Example 2: (2 strategies)Example 2: (2 strategies) Day 1: Buy 5 contracts Euro/US$Day 1: Buy 5 contracts Euro/US$ (Open Strategy 1) (Open Strategy 1) Day 2: Sell 10 contracts Euro/US$Day 2: Sell 10 contracts Euro/US$ (Close Strategy 1 & Capture a Reversal (Close Strategy 1 & Capture a Reversal

(Strategy 2)) (Strategy 2))

Litmus Test: Litmus Test: If the second position is a continuation of the initial strategy, this is not a new If the second position is a continuation of the initial strategy, this is not a new

trade strategytrade strategy If the second position is justified because of a significant parameter change since If the second position is justified because of a significant parameter change since

the initial strategy, this is considered a new trade strategythe initial strategy, this is considered a new trade strategy

Trade & Position SizesTrade & Position Sizes Minimum trade size is one (1) contractMinimum trade size is one (1) contract

One spot contract represents $100,000 of currencyOne spot contract represents $100,000 of currency Margin for a spot contract is 1:100 ($1,000)Margin for a spot contract is 1:100 ($1,000)

Maximum trade size is eight (8) contracts per Maximum trade size is eight (8) contracts per strategystrategy A strategy consists of a spot position in any currency pair A strategy consists of a spot position in any currency pair Students can use multiple entry & exit strategies per Students can use multiple entry & exit strategies per

currency pair to maximize return or minimize risk. currency pair to maximize return or minimize risk. However, staggered entry and exit strategies are not However, staggered entry and exit strategies are not

multiple trade strategies (see previous slide).multiple trade strategies (see previous slide).

Maximum Holdings for any one currency pair Maximum Holdings for any one currency pair is eight (8) contracts at any one timeis eight (8) contracts at any one time Penalty for going over 8 contracts is a 1.0% Penalty for going over 8 contracts is a 1.0%

deduction to your final percentage return scorededuction to your final percentage return score Administrators will randomly enter accounts to

check position sizes throughout the competition

Competition Parameters Competition Parameters Initial Trade ReportingInitial Trade Reporting

Upon completing a trade:Upon completing a trade: Students will maintain a trade journal of their Students will maintain a trade journal of their

transactions.transactions. The Trade Journal Includes:The Trade Journal Includes:

Trade (currency pair and if you went long or short)Trade (currency pair and if you went long or short) # of contracts# of contracts Entry price with exit strategiesEntry price with exit strategies Justification for the trade Justification for the trade

Journal can be in Word, Power Point or ExcelJournal can be in Word, Power Point or Excel

Prize money winners will be asked to submit Prize money winners will be asked to submit their trade journal before receiving awards. their trade journal before receiving awards. Students not submitting a Journal will lose their Students not submitting a Journal will lose their place in the individual competitionplace in the individual competition

Competition Parameters Competition Parameters Subsequent Journal ReportingSubsequent Journal Reporting When a trade strategy hits an When a trade strategy hits an

automated exit, students should post automated exit, students should post their results in their journaltheir results in their journal

If a student alters their strategy or If a student alters their strategy or exits a trade strategy manually, the exits a trade strategy manually, the student should post the trade student should post the trade strategy changes and justification in strategy changes and justification in their journaltheir journal

Journal Recording of Journal Recording of Executed Trade StrategiesExecuted Trade Strategies

Journal Reporting Executed Journal Reporting Executed Trades: ExampleTrades: Example

Competition Parameters Competition Parameters End of Session ReportingEnd of Session Reporting

Students will submit their account and Students will submit their account and passwords on the Competition website at the passwords on the Competition website at the beginning of the competition. Those that do beginning of the competition. Those that do not do so are removed from the competition not do so are removed from the competition but count towards the team competitionbut count towards the team competition

At the end of each session (October 15 & At the end of each session (October 15 & October 31), competition administrators will October 31), competition administrators will enter student accounts to check trade enter student accounts to check trade activity, historic position volume size and activity, historic position volume size and equity positionsequity positions

We will use these reports to determine We will use these reports to determine competition placingcompetition placing

Registration ProcessRegistration Process

RegistrationRegistration Competition registration consist of two (2) parts:Competition registration consist of two (2) parts:

GFT Forex TradingGFT Forex Trading Create a user demo trading accountCreate a user demo trading account Download the trading software platform (DealBook F/X 360)Download the trading software platform (DealBook F/X 360) Students will use the platform develop and implement Students will use the platform develop and implement

trading strategiestrading strategies

Mays Portal (Two separate sign ons for current A&M Mays Portal (Two separate sign ons for current A&M students)students)

Sign onto the Mays PortalSign onto the Mays Portal Submit resume on the PortalSubmit resume on the Portal Familiarize yourself with the information availableFamiliarize yourself with the information available Submit the following:Submit the following:

User GFT account and passwordUser GFT account and password Resume Drop (for those interested in our sponsor receiving Resume Drop (for those interested in our sponsor receiving

your resumes)your resumes) At the end of the competition, prize winners will submit their At the end of the competition, prize winners will submit their

trade journals on the Mays Portal websitetrade journals on the Mays Portal website

GFT Forex RegistrationGFT Forex RegistrationWebsiteWebsite

At At www.gftforex.com/mayswww.gftforex.com/mays : : Sign up for a demo accountSign up for a demo account Download the DealBook FX 360 Download the DealBook FX 360

softwaresoftware

GFT Website & DownloadGFT Website & Download

Download Demo Software

Create Demo Account

Trade Platform – The StartTrade Platform – The Start

Trade Platform - Trade Platform - CustomizedCustomized

DealBook FX 360 DealBook FX 360 Tutorials & HelpTutorials & Help

You will find information of how to You will find information of how to customize your trade platform at:customize your trade platform at:

The DealBook FX 360 Users manual and other The DealBook FX 360 Users manual and other helpful documents posted on the Mays Portalhelpful documents posted on the Mays Portal

The Help File in the DealBook FX 360 softwareThe Help File in the DealBook FX 360 software

http://www.stitrader.com/freetrial/http://www.stitrader.com/freetrial/ for help for help with trading strategieswith trading strategies

Numerous trading-related books at retail Numerous trading-related books at retail bookstoresbookstores

Your Mays Portal Account(s)Your Mays Portal Account(s)

The Mays Portal Front The Mays Portal Front PagePage

Participants will also Participants will also “register” on the “register” on the Mays Portal at Mays Portal at http://maysportal.tahttp://maysportal.tamu.edu/mu.edu/

Click onto the F/X Click onto the F/X Trading Competition Trading Competition link in the Main link in the Main Menu:Menu:

Last Year’s ParticipantsLast Year’s Participants

If you participated If you participated in the competition in the competition last year, you can last year, you can use the SAME use the SAME username and username and password as last password as last year’syear’s

New ParticipantsNew Participants

If you are a new participant, you must If you are a new participant, you must create a NEW accountcreate a NEW account

Texas A&M TeamTexas A&M Team

If you are a current Texas A&M student If you are a current Texas A&M student and already have a Mays Portal and already have a Mays Portal username, you MUST log on to BOTH username, you MUST log on to BOTH the F/X Competition link on the main the F/X Competition link on the main menu AND through your user name on menu AND through your user name on Mays PortalMays Portal

Sign on to the Mays Portal:Sign on to the Mays Portal: Click on FINC 267 FX/TradingClick on FINC 267 FX/Trading The enrollment key for the competition The enrollment key for the competition

is: is: deltadelta

Submitting ResumesSubmitting Resumes

As part of the competition, we will be As part of the competition, we will be creating a resume book to provide to creating a resume book to provide to the competition sponsorsthe competition sponsors

To submit your resume: To submit your resume: Have your resume prepared in a an MS Word Have your resume prepared in a an MS Word

documentdocument Go to May’s Portal site and click on the Go to May’s Portal site and click on the

resume link.resume link. Browse your computer for your resume file Browse your computer for your resume file

and submit.and submit.

Submitting Account numbers Submitting Account numbers and Passwordsand Passwords

As part of the competition, you need to As part of the competition, you need to submit your account number and submit your account number and password via the Mays Portalpassword via the Mays Portal

We will use it to check account positions We will use it to check account positions and determine trading returnsand determine trading returns