Office for Futures and Options Research (OFOR)

Workshop	Date	Description	Instructors
Introduction to Trading and NCFE Series 3. Workshop to accompany ACES 428 CLICK TO REGISTER	Meet weekly, Mondays, Beginning August 30, 2010, including Labor Day, September 6, except for Thanksgiving week; 4:00 PM – 5:20 PM Class website:  http://www.ace.illinois.edu/ ofor/workshops/trading-series3.htm Check here for updates, class information (e.g. cancels due to weather, and support. 426 Mumford Hall University of Illinois, Urbana, IL campus.	Overview:  The objectives of this workshop are twofold: 1) Students will learn technical aspects of trading and risk management beyond what is covered in ACE 428. 2) Students will receive training for the National Commodity Futures Examination Series 3 to supplement what is covered in ACE 428.	Trader and instructor Bill Campbell

The workshop will be organized so that one week is predominantly focused on trading and risk management topics and the next is predominantly focused on regulatory items covered on the Series 3 exam.  The workshop’s extensive use of a simulated trading environment builds on ACE 428’s coverage of the basics of futures and options markets, how they are structured, how they are used for risk management and speculative purposes, and it covers the simple mechanics of trading.   

Most careers in the futures and options brokerage industry require individuals to pass the Series 3 exam prior to licensing or working with clients.  Students who take ACE 428 alone have successfully gone on to study the regulatory components themselves and pass the Series 3 exam.  However, this workshop formalizes the Series 3 prep and is an excellent option for students who know they want a career in the futures and options industry and know they will take the Series 3 exam shortly after completing ACE 428.

Week 1:

Introduction
Workshop Goals: Regulatory / Risk Management
Workshop Outline
Trading Application (Simulated)
Resources
Grading/Quizzes
Trading Lesson 1
2 week Trading Assignment 1: earn $10,000

Week 2:

Regulatory Lesson 1
Brief Recap / Review of Trading
What the Series 3 Test is / is not
Handout & Discussion: who are / what role is played by various entities
Handout & Discussion: The Delusion of Returns and Risk: Margin vs Capital

Week 3:

Trading Lesson 2
Review
Discussion of Overall results
Technical Analysis Session 1: Dogma vs Toolbox
2 week Trading Assignment 2: make OR lose $10,000

Week 4:

Regulatory Lesson 2
Brief Recap / Review of Trading
Customer Accounts
Handout & Discussion: Insurance, Safety, Opportunity – or Danger?: Options on Futures

Week 5:

Trading Lesson 3
Review:
Discussion of Overall results
Technical Analysis Session 2: Price, Time, Volume, OI Patterns
2 week Trading Assignment 3: Futures AND Options: earn $10,000

Week 6:

Regulatory Lesson 3
Brief Recap / Review of Trading & Trading Log so far
Handout & Discussion: CTAs, CPOs, ETFs
Handout & Discussion: Spreads

Week 7:

Trading Lesson 4
Review
Discussion of Overall results
Discussion of current market topics
Technical Analysis Session 3: Simple Mathematical Models
2 week Trading Assignment 4: Futures AND Options: earn $10,000

Week 8:

Regulatory Lesson 4
Brief Recap / Review of Trading
Handout & Discussion: Supervision of the Futures Industry
Handout & Discussion: Is ‘traditional fundamental’ price forecasting
really a type of technical analysis?

Week 9:

Trading Lesson 5
Review
Discussion of Overall results
Discussion of current market topics
Technical Analysis Session 4: Simple High-frequency model
Math models (when can they go wrong?)
2 week Trading Assignment 5: Futures And Option trades: earn $25,000

Week 10:

Regulatory Lesson 5
Brief Recap / Review of Trading
Handout & Discussion: Regulatory Exam #1
Handout & Discussion: Risk Management: For Yourself, For Others

Week 11:

Trading Lesson 6
Review
Discussion of Overall results
Discussion of current market topics
Risk Management Session 1: Managing Others
1 week Trading Assignment 5
Traders and Risk Managers: A Team or Opponents?

Week 12:

Regulatory Lesson 6
Brief Recap / Review of Risk Mgmt + Trading
Review Exams
Handout & Discussion: Regulatory Exam #2
Handout & Discussion: Incentives vs Penalties
1 week Trading Assignment 6
Traders and Risk Managers: Restructured Hierarchies

Week 13:

Trading Lesson 7:
Review
Discussion of Risk Management
Final Topics: The VIX (what it is / is not)
“Good” trading programs