BACHELOR IN BUSINESS ADMINISTRATOR (Hons)

FUTURE

FIN 645

FUTURE AND OPTIONS

INDIVIDUAL ASSIGNMENT 1

FUTURE TRADING PLAN (FTP)

PREPARED BY : NURUL SHAHIRAH BINTI AZMI

STUDENT NUMBER : 2014900005

PREPARED FOR : DR. MD. KHAIRU AMIN BIN ISMAIL

SUBMISSION DATE : 11 DECEMBER 2021

 TABLE OF CONTENTS

CONTENTS PAGE
Acknowledgement 3
1.0 Introduction
 Types of Future Trade 4
 Trading Plan of Future Trading
 Strategies for the Future Trading
2.0 Technical Analysis
2.1 Technical Indicator 5-10
2.1.1 VOLUME (Explain + Chart)
2.1.2 MACD
2.1.3 STOCHASTIC RSI
2.1.4 RSI
2.1.5 MOVING AVERAGE (MA)
3.0 Fundamental Analysis
3.1 Fundamental Analysis 1 11
3.2 Fundamental Analysis 2
4.0 Expert Opinion 12
5.0 Conclusion 13-15
6.0 References 16
7.0 Appendices 17-18

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ACKNOWLEDGEMENT

Assalamualaikum, In the name of Allah, the Mighty and Merciful, I implore his
blessings to enable me to complete my future trading simulation report successfully. The
success and eventual completion of this project will need a great deal of leadership and
collaboration from a large number of people. I'd want to express my heartfelt appreciation to
the several individuals who are assisting me with this endeavour. We've been informed on
this project since the beginning of the semester. To begin, I'd want to express my gratitude
to my lecturer, Dr. Md. Khairu Amin bin Ismail, for his advice. If I do not get an adequate
instruction, I will be in the dark and unable to complete my assignment on time. I'd also want
to express my gratitude to Universiti Teknologi Mara (UiTM) Kota Bharu for providing me
with the opportunity to study Futures and Options this term.

This topic has helped me improve my capabilities and knowledge base, which will
benefit me in the future. Which I can use to my advantage when I enter the trading sector.
Second, I'd want to convey my thanks to all of my mentors. Without everyone's aid, I may
not be able to accomplish my assignment on time.

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1.0 INTRODUCTION
A futures contract is an agreement to buy or sell a certain quantity of an asset
at a specified price at a specified future date. Due to the uniformity of its terms, futures
contracts for any commodity or asset may be traded on an exchange. The only variable
is the price. Futures contracts currently represent commodities and financial instruments
like as oil, corn, gold, major stock indexes, and foreign currencies that you are already
familiar with and hear about in the news on a regular basis. Futures trading occurs on
federally regulated exchanges that serve as both a marketplace and a clearinghouse for
post-trade settlement. With each futures transaction, the buyer and seller create a new
contract, and the number of contracts generated is limitless. On the other hand, each
publicly listed firm has a finite number of shares of stock available for trading. I'm going
to employ two distinct sorts of futures traders for this project. To begin, there are FCPO-
Crude Palm Oil Futures. FCPO is actively employed as a risk management tool by
companies in the edible oil and fat sectors, as well as fund managers and financial
institutions, to restrict market price fluctuations. FCPO is a structured instrument that
provides access to the crude palm oil market for retail investors. Buy low and sell high to
maintain an optimistic attitude on crude palm oil price movement, and vice versa to
maintain a pessimistic viewpoint. Second, futures trading is available for the FKLI-FTSE
Bursa Malaysia KLCI. FKLI employs a Ringgit Malaysia "MYR" denominated FTSE
Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) Futures Contract supplied
by Bursa Malaysia Derivatives "BMD" to expose market participants to the underlying
FBM KLCI components. It is employed in the trading portfolios of both institutional and
individual investors.

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2.0 TECHNICAL ANALYSIS
2.1 TECHNICAL ANALYSIS
Chart analysis is used by traders to get knowledge about asset creation and
consumption, as well as market psychology. Value investing is founded on the
interaction of these indicators. For example, trading volume may be used to
forecast the duration of a rate hike. In this case, indicators will be employed to
provide trading chances. I'll learn seven new chart patterns from this list that I can
include into my trading. It is possible that I will not need all of them. Rather than
that, I may chose a few that I believe will aid me in making sound financial
decisions.

Traders often apply a variety of technical indicators while evaluating an asset.

With so many indications available, investors must learn how to use them and
choose the ones that are most appropriate for their circumstances. Traders may
create futures choices via the use of analytical techniques such as more
discretionary types of data analysis, such as technical indicator analysis. Due to
the statistical nature of technical indicators, they may be employed in price
discovery systems.

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2.1.1 VOLUME
I use technical analysis as a trading technique to assist me in
achieving success. In my trading, I use volume as a barometer.
Volume refers to the number of shares of stock traded on a securities
exchange or bourse during a certain time period. Volume is a popular
statistic that is often represented by coloured columns, with green
indicating increased volume and red denoting decreased volume.
Because volume serves as a barometer of trend direction, it is critical
to include it into a trading strategy.

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2.1.2 Moving Average Convergence Divergence (MACD)

The Moving Average Convergence Divergence (MACD) indicator is a

trend-following momentum indicator that depicts the point of
intersection of two price moving averages. The MACD is derived as
the difference between the 26- and 12-period exponential moving
averages. The MACD indicator may be used to identify the strength or
weakness of a bullish or bearish market trend.

The histogram for this indicator illustrates the difference between the
MACD and signal lines. When the MACD line (blue) crosses and
crosses over the signal line (orange), as seen in circle A below, it is
time to buy. This suggests that the stock market is increasing in value.
Bearish momentum exists when the MACD line crosses and falls
below the signal line, as seen in circle B.

By using the MACD Divergence strategy, the indicator that generates

buying and selling signals may also be utilised to identify changes in
upcoming trends. When the MACD line's highs and lows diverge from
the stock price's highs and lows, this is referred to as MACD
Divergence. MACD Divergence is classified into two types: bullish and
bearish divergence.

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2.1.3 STOCHASTIC (RSI)

By analysing a construal, a stochastic RSI may be determined.

Overbought is defined as a value more than 0.8, and oversold as a
value less than 0.2. On a scale of 0 to 100, anything over 80 is
considered overbought, while anything below 20 is considered
oversold. Apart from that, we're using the Stochastic Relative Strength
Index, which indicates the market's volatility. The stochastic formula's
usage of RSI readings informs traders if the current RSI value is
overbought or oversold. As a result, the stochastic relative strength
index has been drifting downward. As a result, the market has become
overbought. To summarise, the following factors indicate a futures
contract's selling signal:

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2.1.4 Relative Strength Index (RSI)
The relative strength index (RSI) is a technical analysis indicator that
indicates if a stock is excessively overbought or excessively oversold.
The RSI is represented graphically as a line graph that oscillates
between two extremes and has a value between 0 and 100. A reading
of 30 or less on the RSI indicates that the market is oversold or
undervalued.

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2.1.5 Moving Average (MA)
In technical analysis, investors often begin their price study with a
moving average. A moving average is a statistical technique that
interprets data points by constructing a sequence of averages in
various subsets of the whole data set. Moving averages are important
because they level out the price information. The investor may utilise a
single moving average or a chart with a customizable time period.
Acquiring Fluency Moving averages, for instance, often use time
intervals of 13,20,50, and 200 days. When a shorter day range is used
to calculate the average, it becomes more sensitive. To accomplish
their trading objectives, the investor may choose a time period with a
variable duration. It often employs a shorter moving average, such as
13 days, for short-term trading.

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3.0 FUNDAMENTAL ANALYSIS
3.1 FUNDAMENTAL ANALYSIS 1
Title : Era of cheaper cooking oils is over, says industry
Source : Economic times
Date : Thursday, 10 December 2021
News Contents
This news mentions that India has seen cooking oil prices crossing Rs 200/kg in
2021, which has led to the election that going state of Uttar Pradesh to distribute
sunflower and soya bean oils free costs of the poor till March.

The days of cheap cooking oil may not return soon for Indian consumers. The
new normal base level price of the kitchen essential is expected to be in the Rs
100 to 105/kg range next year, up by up to 30% from 2019 levels.

However, consumers are likely to get a relief of 7-8% from the present price
levels from March 2022, when the country will harvest the winter crop of mustard.

3.2 FUNDAMENTAL ANALYSIS 2

Title : China Edible Oil Import Analysis Report 2021-2030
Source : Business Wire
Date : Wednesday, 9 December 2021
News Contents
This news mentions that China’s domestic edible vegetable oil production cannot
fully address that demand for the domestic market. Therefore, Chinese
companies will meet the market need by importing edible vegetable oil. China’s
edible vegetable oil import volume continued to rise from 5.54 million tons in 2016
to 9.834 million tons in 2020, with a CAGR of 15.43%.

In 2021, from January to August, China imported 8.217 million tons of edible
vegetable oil, up 14.4% YOY, and the import value was USD 8.09 billion =, up
54.2% YOY. The analyst expects that China will continue to import large
quantities of edible oil each year from 2022 to 2030.

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4.0 EXPERT OPINION

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 5.0 CONCLUSION
TRADING PLAN CHART
Trading Plan 1
Position : Long
Data Entry : FKLI JAN 2022
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : I gain of
the profit because I draw the
support and resistance line
correctly.

Expert Opinion :-
Trading Plan 2
Position : Long
Data Entry : FCPO DEC 2021
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : I have the
profit because I discipline in the
time when to buy and sell it

Expert Opinion :-
Trading Plan 3
Position : Long
Data Entry : FCPO JAN 2022
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : Gain of
profit in FCPO JAN 2022 because
draw the support and resistance
line correctly

Expert Opinion :-

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 TRADING PLAN CHART
Trading Plan 4
Position : Long
Data Entry : FCPO FEB 2022
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : I gain of
the profit because I draw the
support and resistance line
correctly.

Expert Opinion :-
Trading Plan 5
Position : Short
Data Entry : FCPO DEC 2021
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : I have the
profit because I discipline in the
time when to buy and sell it

Expert Opinion :-
Trading Plan 6
Position : Short
Data Entry : FCPO JAN 2022
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : Gain of
profit in FCPO JAN 2022 because
draw the support and resistance
line correctly

Expert Opinion :-

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 TRADING PLAN CHART
Trading Plan 7
Position : Short
Data Entry : FKLI DEC 2021
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : I gain of
the profit because I draw the
support and resistance line
correctly.

Expert Opinion :-
Trading Plan 8
Position : Short
Data Entry : FCPO DEC 2021
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : I have the
profit because I discipline in the
time when to buy and sell it

Expert Opinion :-
Trading Plan 9
Position : Short
Data Entry : FKLI JAN 2022
Technical :
1. Time Frame : 15 minutes
2. Major Treat : bullish
3. Indicator : volume,
Stochastic (RSI), Moving
Average, MACD strategy
Fundamental Analysis : Gain of
profit in FKLI JAN 2022 because
draw the support and resistance
line correctly

Expert Opinion :-
P/S : From this report just have 9 trades because of the system Bursa Marketplace has been problem. So, cannot be open
perfectly.

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6.0 REFERENCES
1. https://www.bursamarketplace.com/
2. https://www.businesswire.com/news/home/20211209005902/en/China-Edible-Oil-
Import-Analysis-Report-2021-2030---ResearchAndMarkets.com
3. https://economictimes.indiatimes.com/industry/cons-products/food/era-of-cheaper-
cooking-oils-is-over-says-industry/articleshow/88200674.cms
4. https://www.tradingview.com/chart/s8icwAKe/

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7.0 APPENDICES

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P/S : The system shows login success, but the system stuck cannot be open. I wait for long time
to open but always same on anytime.

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