The project requires to make trades on a practice trading app. We can communicate and I can make the trades for you or here is the log in info in case it is easier for you to do it yourself.
ask support for login
(let me know if you need anything else, I’ll make sure to express monetary gratitude if expectations are met, thank you for your help)
You are the portfolio manager for “The _________ Fund”, hereafter referred to as the “fund”. The fund’s starting value
is $1,000,000 and you have about 5 weeks to manage it. At the end of 5 weeks, the board of directors (the Board is
comprised of one person: Kevin Brady) will evaluate how well you followed the fund’s guidelines and how well you met
the fund’s goals. Most of the evaluation will be based on how well you justify your trading activity (and especially
changes to trading activity) with written explanations that relate financial theory (learned in FIN 741) to your actual
trades. This follow-up written assignment will be submitted near the end of the course (but you should be compiling it as
you trade and invest.)
The guidelines and goals for the fund follow:
Report should be a Microsoft Word document explaining your trades. Imagine, as stated above, that I am a board
member for the investment firm and I simply say to you “Please provide me with a report of your last 5 weeks of
trading”. What would you produce? I’d imagine it would be well organized, easy to read, nice looking, have
images/tables, correct grammar, well explained investment process for a buy/sell, cited information when/if
appropriate, concise, and would be enough trades to make it look like it’s worth me not firing you from the firm.
Your grade will be graded based on presentation of work, rationale for trades, following directions below, using
class/book/other learned knowledge.
I don ‘t give you a sample because I want you to provide me with what you believe is quality work, just as your job with
an MBA degree might not simply give you an outline of what to do.
Maximize the fund ‘s risk-adjusted return subject to the following ‘rules’. Also, don’t forget about risk.
1. Complete the project.
3. See max transactions. Make some day trades if you want, but be careful not to go over the max
4. The fund may not invest in more than 50% in mutual funds/ ETFs.
5. No single position in any asset is to exceed 10% of the fund ‘s value without permission from the Board of Directors.
6. The fund must have initiated at least 3 long positions in an instrument by
7. The fund must have initiated at least one short position in an instrument by
8. The fund must have initiated at least one position in one bond or bond ETF position
9. The fund must have initiated at least one position in one option position
10. , the fund must have at least 80% of its assets “at risk” (i.e., invested in instruments other than cash).
This condition must be met through the remainder of the trading period.
11. You have to make at least one stock limit order, one stock stop order, and one trailing stop order (if functional).
12. All transactions must be well-motivated and may not be arbitrary. Remember that all transactions should be
justifiable to the Board of Directors. Having said that, you do not need a full research report. But explain why you “like”
the investment” but also think about financial theory and/or valuation in your answer).
13. Any trading errors are the responsibility of the fund manager, not the broker (Stock-Trak). The fund manager must
resolve all conflicts or errors with the broker, but I am reasonable, so let me know if there is an issue.
14. I will post some additional “strategies or tips” which you should consider as time goes on. You should make
adjustments to your portfolio accordingly.