MBAs Help School Earn Top Spot in International Trading Competition
March 26, 2009
Second-year MBA finance student Supreet Arora won third place and $3,000 in a international stock trading contest.
Eleven University of Miami students participated in the competition over the last year and the University placed seventh overall out of around 100 universities that competed. The MBA Finance and Investment Banking Club promoted the competition and encouraged participation.
The competition was set up through Equitrader, an online simulated securities trading arena. Running from September 2008 through March 2009, the Collegiate Competition boasted 585 registrants from around the world. Each participant started with a theoretical cash pool of $1,000,000. Adhering to a list of parameters including minimum and maximum prices, ability to use margin, and volume limits, participants bought and sold for the duration of the contest.
Equitrader ran the competition supporting stocks listed on the NYSE, AMEX and NASDAQ. Though the competition was equities-only trading, it did allow for algorithmic trading. Winners were chosen based on percentage portfolio return.
“My strategy was to constantly scan the market for opportunities. In such a bad economy you have to be on the top of events which provide you with ample chances of positive return,” said Arora, whose final return was 50.71 percent. “I also hedged my portfolio by buying gold. This ensured low risk and eventually higher gains.”
Arora said his School of Business courses in investment, derivatives and capital markets helped him to understand market movement and make the right investment decisions during the competition.