Download assessing behaviour within an environment of uncertainty and risk

A practical exercise in
ASSESSING
BEHAVIOUR
WITHIN AN
ENVIRONMENT
OF UNCERTAINTY
AND RISK
Tablet Optimised
You can tell a great deal about a person by the way they
trade. Decision making within an environment of
uncertainty, pressure and risk allows for an accurate and
real analysis of human behaviour.
Piers Curran - Head of Trading
A PRACTICAL INSIGHT INTO
CANDIDATE BEHAVIOUR
This one day event is designed to explore how a
candidate’s behaviour may affect the way they make
decisions within an environment of uncertainty and risk.
After candidates receive a contemporary market
overview and platform demonstration they will take to
their live trading terminal to execute trading strategies
across multiple asset classes.
Candidates will be taken through three stages of
assessment which each in turn alter the scenario to
highlight different variables being measured. The
assessed variables could include the below but we would
expect to tailor these exactly to your institutions
specification:
•
Deviation of return | Are returns close or disperse to
the mean average of return?
•
Sharpe ratio | What is the volatility of returns?
•
Patience | Time spent in winning or losing positions
•
Variance Resilience | Ability of the trader to mitigate
positive or negative performance on future trading
decisions
•
Pragmatism* | Ability of the trader to book profit or
take a loss of the trade close to the maximum
potential profit or loss of that trade within the available
time period
•
Discipline | How fast does the trader rectify a
mistake made on any size or limit breaches?
•
Product Type | How does the trader perform in
products of varying volatility?
•
Trading Style* | How does the trader perform in
periods of different volatility?
•
Equity Curve* | How the traders equity curve
changes over time
*Variables being added to new heat map in 2016
FOUR STAGES OF TRADING
WITH UNCERTAINTY
AND RISK
UNDERSTANDING GLOBAL INDICATORS
09:00
Review: Contemporary market trends
Preview: Economic data and market expectations
PLATFORM DEMONSTRATION
Non-assessed trade execution and application of basic technical tools
TRADING SESSION ONE
11:00
Candidates execute trades across asset classes with a strict limit on
size of exposure but no limit on overall loss
TRADING SESSION TWO
Candidates execute trades across asset classes with a strict limit on
size of exposure and strict limit on overall loss
TRADING SESSION THREE
15:00
After lunch candidates execute trades with significantly increased size
of exposure and strict limit on overall loss
TRADING SESSION FOUR
Candidates log into a new licence showing large adverse positions in
volatile and illiquid products
SESSION REVIEW
16:00
Candidates receive their results and heat map reports highlighting
their performance variance
PERFROMANCE ANALYSIS
Our current technology records every decision candidates make, and the market
environment in which they made them. Our new performance heat map (not shown)
is expected to be completed by June 2016.
Our proprietary market simulations give
candidates an unprecedented experience
actually applying the key investment
concepts being taught with real market
data.
As candidates progress through this
unique practical day, performance at
each stage is recorded and reviewed to
give candidates a full insight into how
asset prices really move.
“Truly a highlight of the
training. The facilitators were
incredibly prepared and the
interface advanced. This was
simply the most important
part of the training.”
Kelly Burke, Bank of America Merrill Lynch
Amplify Trading delivers practical market training in over 15 Universities in the UK