BAU and BLOMINVEST bank are pleased to announce The Virtual Stock Exchange Competition
1. Opening ceremony date and first meeting between BAU students and BLOMINVEST competition representatives: Monday February 26 at 10:00 am
2. First trading day: 5 march 2018
3. Last trading day: Participants are expected to close all their positions during that day. If some positions are illiquid and were left open, the statements of the closing day will help us determine the value of the security held: 30th of April 2018.
4. Platform: Interactive Brokers. The software needs to be downloaded by students on their machines. Students will receive their access credentials
5. Universe: All U.S. stocks and options on those stocks. ETF’s and options on those will be allowed for U.S market indexes only. Forex, other futures or options, bonds and commodities trading are not allowed.
6. Since the platform does not restrict the universe of securities, contestants need to make sure that they don’t violate the above restriction to allowable securities. If in doubt, the candidate should consult with one of the contacts that will be given for this purpose.
7. Any violation of rules 4 & 5 will lead to the disqualification of the candidate.
8. Shorting is allowed. Margin requirements will be the same as in real life and IB computes margin requirements in real time so that margin calls, if any, are received intra-day.
9. Trading will be possible during regular U.S. trading hours (i.e. from 4:30pm to 11:00pm local time).
10. Trading will also be allowed in pre-market and after-hours but with realistic widening of bid-ask spreads.
11. Each trader’s portfolio will be private, i.e. others will not be able to know what his/her trades are nor his/her performance.
12. During the competition, relevant Blominvest experts will give two training sessions for participant students giving them tips and insights relating to trading and answering their questions. 1rst Training: March 07, 2018 and 2nd Training: March 12, 2017.
13. Participants are expected to prepare a presentation in which they lay out their strategy and explain the rationale behind their trades. Participants will also have to be prepared for any questions (and there will be many) concerning their trades and their style of trading.
14. The criteria for picking the best performers will be risk-adjusted returns. This means that the returns of each candidate will be taken relative to the risk assumed. The return will be the final achieved return as of the closing date. Risk will be measured as standard deviation of the portfolio’s daily returns.
15. BAU faculty of business administration will select the best 10 performers and they will be subject of screening/interviews from the BAU team in order to filter the final 5 performers.
16. On the closing day of the competition, the final 5 performers will present their findings to a joint Blominvest-BAU jury that will choose the best three performers based on the following indicators: yield, strategy, presentation content and delivery skills. These indicators are equally weighted.
17. In terms of prize money: the winner gets $2,000, the runner up $1.500 and the third $1,000.
18. Final ceremony: May 07, 2018.
19. The final five performers in this competition will participate in the National Virtual Stock Exchange Competition that takes place between winners from all universities in Fall 2018 where the prize will be doubled.
For participation and more information please contact Dr. Hanadi Taher BAU faculty of Business administration ext: 2574 or email: email@example.com.