1 / 18

FEC Financial Engineering Club

FEC Financial Engineering Club. What is Financial Engineering?. Multidisciplinary field applying mathematics, engineering methods, and programming techniques to financial theory. Traditionally, mathematical modelling of financial phenomena that is implemented via some programming language.

hasad-perkins
Download Presentation

FEC Financial Engineering Club

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. FECFinancial Engineering Club

  2. What is Financial Engineering? • Multidisciplinary field applying mathematics, engineering methods, and programming techniques to financial theory. • Traditionally, mathematical modelling of financial phenomena that is implemented via some programming language. • Nowadays, can refer to any application of technical tools to finance. • Traders • Quants • Software Developers

  3. Mean Reversion • Idea – If two securities are co-integrated and they diverge in price, they should eventually converge to their normal ratio. • Mean Reversion strategies capitalize on this idea by buying the underpriced security and shorting (selling) the overprice security. • We assume that the overprice security will fall in price and/or the underprice security will rise in price. • When this happens, liquidate your position. • $$$ • The strategy is market neutral, such that the trend of the overall market will not result in huge losses or gains.

  4. Mean Reversion

  5. About The FEC

  6. About the FEC • We are a society of students interested in quantitative trading. • We come from a variety of challenging majors that include undergraduate and graduate students. • We have worked at / have contacts at banks, trading firms, hedge funds, and technology firms.

  7. FALL SEMESTER Plans

  8. Interview Preparation • Prepare for technical interviews through workshops and mock trading sessions. • What is the probability that if you role two six-sided dice, their product is a perfect square? • 2/9 • What is the expected value of the product of number of heads and tails of ten randomly flipped coins. • 22.5

  9. Educational Lectures and Workshops • Learn the material of restricted upper level finance courses. • Lectures given by our members or posted online for your reference. • Workshops on strategies to teach you how to trade by yourself! • Hands-on workshops on software tools and trading platforms.

  10. Opportunities to Get Involved • Projects • Education Committee • Information Committee • Develop valuable programming experience! • Research projects • https://github.com/FEC-UIUC/ • Help create lectures on academic and industrial topics. • Help maintain the FEC news blog.

  11. Education Committee • Master students • Undergraduate students • Create and present lectures • Great opportunity to improve presentation and communication skills • Create online education materials • Work with master students with lecture preparation • Have basic knowledge in finance or programming Check email for application!

  12. Projects • The FEC will source project ideas, provide templates for, and lead teams on projects: • Examples: • Develop an automated trading strategy • Build a poker playing bot. • Develop a trading platform. • https://github.com/FEC-UIUC

  13. Research Opportunity • Form a Group • Create Your Own Project • Several topics to choose from. • Utilize the knowledge in quantitative trading to lead undergrad students to explore. • FEC will provide you a platform to share your idea for potential projects!

  14. Information Committee • See financial applications in the real world • Weekly newsletter/blog on finance related news articles • Inform members of campus events • Talks, presentations, recruiting • Present current event topics • Give short talks on relevant material, i.e. HFT • Website managment and development Check email for application!

  15. Trading Competitions • MIT Fall Intercollegiate Trading Competition—Nov 2014 (sign-ups open!) • RottmanTrading Competition – Spring 2015 • U-Chicago Midwest Algo-Trading Competition – Spring 2015

  16. DUE Paying MEMBERSHIP BENEFITS $10 per semester

  17. UPComing Events

  18. Thank you! • Website: http://www.fec.ec.Illinois.edu/ • Facebook: http://www.facebook.com/UIUCFEC • LinkedIn: http://www.linkedin.com/financialengineeringclub • Email: uiuc.fec@gmail.com

More Related