Baruch CollegeFIN 4720 FTR - Spring 2019The City University of New YorkFUTURES AND FORWARD MARKETS

APPENDIX: Notes on STOCK-TRAK

The Scenario

You have been awarded a ten-week internship as a commodity trading advisor (CTA). We are your commodity pool operators (CPOs)your supervisors, in other wordsand we have allotted you $1 million to use for margin. At the close of the ten weeks, some members of the trading intern class will be retained as full-time CTAs, and it is your objective to obtain one of those positions. Your only tool in this endeavor is a written report to us that makes a very specific argument for why you are an ideal candidate for retention.

The Report

Again, your report's primary objective is to convince your readers to offer you a full-time, permanent position. As your professors, we will evaluate your report based on the extent to which you present yourself as a thoughtful, analytical, and prudent investor. We will not grade your report based on your trading results. Effective reports will:

Make a persuasive argument for retention, regardless of portfolio outcomes Support that argument with specific, concrete evidence of thoughtful, analytical trading decisions Clearly explain a well-developed approach to risk management Acknowledge challenges and setbacks Reveal analytical, reflective responses to those setbacks Identify and appropriately cite all sources of outside information Have a professional appearance Have an engaging persona behind them Be free of grammatical and spelling mistakes

A draft of your report, on which you will receive feedback for revision, is due March 28, 2019. Your draft must represent a serious attempt to meet the objectives above. If we conclude the draft is not salvageable, you may forfeit the opportunity to submit the final report, which comprises 25% of your grade for the course.

Limitations + You may only trade commodity futures and commodity futures options, that is, commodities such as copper, oil, cotton, corn, sugar, coffee, etc. You cannot trade interest rate futures, stock futures, stock index futures, or currency futures.

Help

Baruch has a writing center to help our students write more professionally.Visit them at www.baruch.cuny.edu/writingcenter

Parting Words

The STOCK-TRAK simulation provides you a unique opportunity to test and practice trading strategies. Perhaps more importantly, it asks you to apply your analytical and persuasive skills as you would in the company of professional colleagues and supervisors. We are available to discuss strategies if you are unsure of how to proceed. It will, however, remain your responsibility to develop, summarize, and synthesize your work in the final report.