3rd Annual Texas A&M Undergraduate & Graduate Foreign Exchange Trading Competition

1. 3rd Annual Texas A&M Undergraduate & Graduate Foreign Exchange Trading Competition

2. Competition • The competition is for undergraduate and graduate finance and business majors interested in fundamental trading, technical trading and foreign exchange rates • The competition is being coordinated through the Reliant Energy Trading Center, Texas A&M University

3. Competition • All questions, concerns and ideas should be addressed to: • Detlef Hallermann – Texas A&M University • Email: dhallermann@mays.tamu.edu • All decisions made regarding questions, concerns, penalties and outcome for the competition are at the discretion of Dr. Hallermann and are final • By entering the competition, students waive the right to contest penalties or outcome to any authority outside of the competition

4. The Competition

5. Competition Time Frame • Sign Up – Sign up begins Thursday September 20 at 5:00 pm (CST) • GFT Website • Mays Portal • Competition Time Frame: • Session 1 – October 1 – October 15 (CST) • Session 2 – October 16 – October 31 (CST)

6. Competition Warm Up • If students wish to practice trading before October 1: • Students are encouraged to learn the DealBook 360 system • We encourage students to trade small amounts as they get comfortable with the system (1 lot). This is to practice on the system, not to try to get ahead in the competition. • If students enter trades and gain/lose on those trades before the competition: • It will affect the starting amount for the competition • it will not affect their percentage return score for the competition • Thus, it is unnecessary to reset accounts on October 1

7. Competition Changes • This year there are two divisions • Individual • University • Universities with a minimum of 10 competitors (combined graduate and undergraduate) are eligible to compete in the university competition • The university with the highest average return will receive a trophy

8. Prize Pool Distribution Example Competition Brackets & Prize Money • After Session 1: • Those having traded less than five trade strategies will be removed from the competition • After Session 2: • The top ten traders will be rewarded prize money based on their percentage of return among the total prize pool. • The number of prizes and the prize pool may be adjusted upward according to the number of competition participants

9. Overall Grand Prize $10,000 GFT FUNDED ACCOUNT • NOTES • The overall winner of the Second Annual Texas A&M University Undergraduate & Graduate Inter-University FX Competition will have the opportunity to trade an account at GFT with an initial funding of $10,000 for a total of six months, and GFT will pay the winner the total net profit, if any, earned in the account in that timeframe. If there is a net loss, it will be borne by GFT. Normal GFT account opening processes are required, but GFT will retain ownership of the account, and no withdrawals will be permitted. • The net profit or loss will be calculated from the time and date the account is opened until six months from that date, and the customer will be permitted to trade the account with unlimited round-turn transactions between the two dates, subject to applicable margin requirements. A round-turn is defined as one complete trade – a transaction comprising the buying and selling of a standard lot size of 100,000 for one currency pair. The account must be self-traded by the winner and may not be traded by any other person. Base 10 Trading™ transactions under the standard lot size of 100,000 will not be permitted. • Only one winner will be eligible for this prize. For non-U.S. accounts, the net profit, if any, will be converted from U.S. dollars in accordance with a then-current exchange rate, as determined by GFT. For tax reporting purposes, a 1099 form may be issued at year-end to a recipient of a net profit. This is not an offer or solicitation in any jurisdiction where such an offer or solicitation is not authorized. GFT reserves the right in its sole discretion to amend, restrict or revoke this offer at any time.

10. Team Competition Notes • University teams will compete for a trophy (sorry…no cash) • A university must have ten (10) participants to qualify for the team competition. • Team competition winner is determined by the highest average percentage return of the total competing university team (all competitors for the team are included in the average calculation)

11. CompetitionParameters

12. Trading Platform: GFT DealBook FX 360 • Students will complete trades using a demo account starting with $50,000 on the GFT Forex Trading Platform: DealBook FX 360 • It can be downloaded at their website (more on this later): • www.gftforex.com/mays • NOTE: Make certain that you use this website versus their main website. Otherwise salesmen will telephone you and potentially drop your account! • Students may trade any currency pair available on the DealBook Platform

13. Competition Parameters Required Trading • In each trading session, students will perform a minimum of five (5) trade strategies to be eligible for prizes • Trading sessions: • Oct 1 – 15 (CST) • Oct 16 – 31 (CST) • A trade strategy consists of: • Entering into a trade or series of trades on a particular currency pair • Setting your exit strategies • See strategy examples on the following slide • There is no maximum number of trades per trading session • If a student does not complete five trade strategies per session, they will be dropped from the competition

14. Competition Parameters Strategy Examples • Entering into a trade strategy on a particular currency pair and exiting the strategy followed by a subsequent trade in the same currency pair will typically be considered multiple strategies. This will be determined by trade justification given in the student’s trade journal • Example 1: (3 strategies) • Day 1: Buy 5 contracts Euro/US$ (Open Strategy 1) • Day 2: Sell 5 contracts Euro/US$ (Close Strategy 1) • Day 3: Buy 5 contracts Euro/US$ (Open Strategy 2) • Day 4: Buy 5 contracts GBP/US$ (Open Strategy 3) • Example 2: (2 strategies) • Day 1: Buy 5 contracts Euro/US$ (Open Strategy 1) • Day 2: Sell 10 contracts Euro/US$ (Close Strategy 1 & Capture a Reversal (Strategy 2)) • Litmus Test: • If the second position is a continuation of the initial strategy, this is not a new trade strategy • If the second position is justified because of a significant parameter change since the initial strategy, this is considered a new trade strategy

15. Trade & Position Sizes • Minimum trade size is one (1) contract • One spot contract represents $100,000 of currency • Margin for a spot contract is 1:100 ($1,000) • Maximum trade size is eight (8) contracts per strategy • A strategy consists of a spot position in any currency pair • Students can use multiple entry & exit strategies per currency pair to maximize return or minimize risk. • However, staggered entry and exit strategies are not multiple trade strategies (see previous slide). • Maximum Holdings for any one currency pair is eight (8) contracts at any one time • Penalty for going over 8 contracts is a 1.0% deduction to your final percentage return score • Administrators will randomly enter accounts to check position sizes throughout the competition

16. Competition Parameters Initial Trade Reporting • Upon completing a trade: • Students will maintain a trade journal of their transactions. • The Trade Journal Includes: • Trade (currency pair and if you went long or short) • # of contracts • Entry price with exit strategies • Justification for the trade • Journal can be in Word, Power Point or Excel • Prize money winners will be asked to submit their trade journal before receiving awards. Students not submitting a Journal will lose their place in the individual competition

17. Competition Parameters Subsequent Journal Reporting • When a trade strategy hits an automated exit, students should post their results in their journal • If a student alters their strategy or exits a trade strategy manually, the student should post the trade strategy changes and justification in their journal

18. Journal Recording of Executed Trade Strategies

19. Journal Reporting Executed Trades: Example

20. Competition Parameters End of Session Reporting • Students will submit their account and passwords on the Competition website at the beginning of the competition. Those that do not do so are removed from the competition but count towards the team competition • At the end of each session (October 15 & October 31), competition administrators will enter student accounts to check trade activity, historic position volume size and equity positions • We will use these reports to determine competition placing

21. Registration Process

22. Registration • Competition registration consist of two (2) parts: • GFT Forex Trading • Create a user demo trading account • Download the trading software platform (DealBook F/X 360) • Students will use the platform develop and implement trading strategies • Mays Portal (Two separate sign ons for current A&M students) • Sign onto the Mays Portal • Submit resume on the Portal • Familiarize yourself with the information available • Submit the following: • User GFT account and password • Resume Drop (for those interested in our sponsor receiving your resumes) • At the end of the competition, prize winners will submit their trade journals on the Mays Portal website

23. GFT Forex RegistrationWebsite • At www.gftforex.com/mays : • Sign up for a demo account • Download the DealBook FX 360 software

24. GFT Website & Download Create Demo Account Download Demo Software

25. Trade Platform – The Start

26. Trade Platform - Customized

27. DealBook FX 360 Tutorials & Help • You will find information of how to customize your trade platform at: • The DealBook FX 360 Users manual and other helpful documents posted on the Mays Portal • The Help File in the DealBook FX 360 software • http://www.stitrader.com/freetrial/ for help with trading strategies • Numerous trading-related books at retail bookstores

28. Your Mays Portal Account(s)

29. The Mays Portal Front Page • Participants will also “register” on the Mays Portal at http://maysportal.tamu.edu/ • Click onto the F/X Trading Competition link in the Main Menu:

30. Last Year’s Participants • If you participated in the competition last year, you can use the SAME username and password as last year’s

31. New Participants • If you are a new participant, you must create a NEW account

32. Texas A&M Team • If you are a current Texas A&M student and already have a Mays Portal username, you MUST log on to BOTH the F/X Competition link on the main menu AND through your user name on Mays Portal • Sign on to the Mays Portal: • Click on FINC 267 FX/Trading • The enrollment key for the competition is: delta

33. Submitting Resumes • As part of the competition, we will be creating a resume book to provide to the competition sponsors • To submit your resume: • Have your resume prepared in a an MS Word document • Go to May’s Portal site and click on the resume link. • Browse your computer for your resume file and submit.

34. Submitting Account numbers and Passwords • As part of the competition, you need to submit your account number and password via the Mays Portal • We will use it to check account positions and determine trading returns