FEC FINANCIAL ENGINEERING CLUB. WHAT IS FINANCIAL ENGINEERING? Multidisciplinary field applying...
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Transcript of FEC FINANCIAL ENGINEERING CLUB. WHAT IS FINANCIAL ENGINEERING? Multidisciplinary field applying...
FEC FINANCIAL ENGINEERING CLUB
WHAT IS FINANCIAL ENGINEERING?
Multidisciplinary field applying mathematics, engineering methods, and programming techniques to financial theory. Traditionally, mathematical modelling of financial phenomena that is implemented via some programming language.
Nowadays, can refer to any application of technical tools to finance.
Traders Quants Software Developers
MEAN REVERSION
Idea – If two securities are co-integrated and they diverge in price, they should eventually converge to their normal ratio.
Mean Reversion strategies capitalize on this idea by buying the underpriced security and shorting (selling) the overprice security.
We assume that the overprice security will fall in price and/or the underprice security will rise in price. When this happens, liquidate your position. $$$
The strategy is market neutral, such that the trend of the overall market will not result in huge losses or gains.
MEAN REVERSION
ABOUT THE FEC
ABOUT THE FEC
We are a society of students interested in quantitative trading.
We come from a variety of challenging majors that include undergraduate and graduate students.
We have worked at / have contacts at banks, trading firms, hedge funds, and technology firms.
FALL SEMESTER PLANS
Interview Preparation
Educational Lectures
Strategy Demonstrati
ons
Software Workshops
Talks from Experienced Individuals
Open-Source Projects and Resources
INTERVIEW PREPARATION
Prepare for technical interviews through workshops and mock trading sessions.
What is the probability that if you role two six-sided dice, their product is a perfect square? 2/9
What is the expected value of the product of number of heads and tails of ten randomly flipped coins. 22.5
EDUCATIONAL LECTURES AND WORKSHOPS
Learn the material of restricted upper level finance courses.
Lectures given by our members or posted online for your reference.
Workshops on strategies to teach you how to trade by yourself!
Hands-on workshops on software tools and trading platforms.
OPPORTUNITIES TO GET INVOLVED
Projects
• Develop valuable programming experience!
• Research projects• https://github.com/FEC-U
IUC/
Education Committee
• Help create lectures on academic and industrial topics.
Information Committee
• Help maintain the FEC news blog.
EDUCATION COMMITTEE
Master students• Create and present lectures
• Great opportunity to improve presentation and communication skills
Undergraduate students• Create online education
materials• Work with master students
with lecture preparation
• Have basic knowledge in finance or programming
Check email for application!
PROJECTS
The FEC will source project ideas, provide templates for, and lead teams on projects:
Examples: Develop an automated trading strategy Build a poker playing bot. Develop a trading platform.
https://github.com/FEC-UIUC
RESEARCH OPPORTUNITY
Form a Group
• Several topics to choose from.
• Utilize the knowledge in quantitative trading to lead undergrad students to explore.
Create Your Own Project
• FEC will provide you a platform to share your idea for potential projects!
INFORMATION COMMITTEE
See financial applications in the real world Weekly newsletter/blog on finance related news articles
Inform members of campus events Talks, presentations, recruiting
Present current event topics Give short talks on relevant material, i.e. HFT
Website managment and development
Check email for application!
TRADING COMPETITIONS
MIT Fall Intercollegiate Trading Competition—Nov 2014 (sign-ups open!)
Rottman Trading Competition – Spring 2015
U-Chicago Midwest Algo-Trading Competition – Spring 2015
DUE PAYING MEMBERSHIP BENEFITS
Access to tick level market data and level 1 quotes
(bid/ask)• Over 1000 US Equities of the last 50 days and counting:
Eligible for executive board and
committee positions
Field Trips Resume Book
$10 per semester
UPCOMING EVENTS
Trading 101• Finance and trading
fundamentals• Options• Market Structure
• 9/10/2014 – 6-7pm 151 Loomis
Interview Question Jeopardy
• Prepare for interviews in a competitive setting!
• 9/17/2014 – 6-7pm 151 Everitt
Projects Kick-Off• Share project ideas and
find a group• Details coming soon,
check your emails!
• TBA
THANK YOU!
Website: http://www.fec.ec.Illinois.edu/
Facebook: http://www.facebook.com/UIUCFEC
LinkedIn: http://www.linkedin.com/financialengineeringclub
Email: [email protected]
Trading 101
• 9/10/2014 – 6-7pm 151 Loomis
Interview Question Jeopardy
• 9/10/2014 – 6-7pm 151 Everitt