CMC Markets University of Auckland Trading Challenge

Young traders enjoy crypto rally in 2019 CMC Markets
University of Auckland Trading Challenge

New Zealand – Wednesday, 29th May, 2019

The ninth
annual CMC Markets University of Auckland Trading Challenge
has come to a close, with third-year students James Lilley
and Ben Julian securing first place from among a field of
more than 160 teams.

The three-week challenge, hosted
in association with the University of Auckland’s
Management Consulting Club (MCC), provides students with the
opportunity to put their investment strategies to the test
and experience real-world trading via the CMC Markets online
trading platform.

The teams (comprised of one or two
people) went head to head in a quest to secure the best
return on investment (ROI).This year’s challenge saw teams
each given a NZD$50,000 CMC Markets virtual fund –
increased from NZD$10,000 in previous years, in order to
enable students to build a more diversified portfolio.

This year also marked the first-time students could trade
on a number of cryptocurrencies, including Bitcoin, Cardano
and Ethereum – in addition to the usual range of financial
derivative instruments such as shares, global indices, and
commodities such as gold and oil.

A combination of
factors, including US President Donald Trump’s trade
tariffs, the RBNZ’s recent cuts to the official cash rate,
and the unpredictability of cryptocurrencies, resulted in
high levels of volatility throughout the competition – and
a constantly changing leader board.

In the end, the
Lilley-Julian duo came out on top with an ROI of 85.54
percent and final account balance of over NZD$92,800.

Lilley says, “The competition allowed us to gain an
interesting insight as to just how fast-paced and
ever-changing the markets can be. We learnt that you can
lose it all just as fast as you make it, and sometimes
it’s important to take a guaranteed win although it may be

Julian, a student who entered from the
Victoria University of Wellington, says, “Having to
closely follow current events and discuss what their impacts
on the market might be was hugely enjoyable for us both.
Locking in profits and minimising losses were key given the
volatility of markets in the past few weeks.”

Third-year Engineering student, Lachie Calder, achieved
his second-place getting a 78.7 percent ROI using a
high-risk strategy.

Calder says, “The competition
was a great way to experience trading with real stakes and
rewards. It gave me an incentive to keep up with world news,
in particular how global markets react in different ways.
What was particularly useful on the CMC Markets platform,
was the ability to trade from my phone. I was able to adjust
my positions and their limits to news immediately while at
university or work, rather than delay and miss a peak.”

Coming in third-place were second-year Commerce and
Science conjoint students, Reeshan Kishore and Andy Yang,
with a ROI of 73.24 percent, mainly traded on currencies and

Kishore says, “Our plan was to
spend the first week making small trades with different
types of products to determine which were the most volatile
and potentially profitable. From the second week onward, we
focused mainly on those.”

Yang says, “The
highlight of our trading experience was sticking through
trades that were making losses, but we felt still had
potential for profits – and then later successfully closing
these trades with significant profits.”

Barton and Zach Withers, Finance Events Co-Leads of MCC says
the competition is a great chance for students to trial what
they’ve learnt in class and take risks in a realistic, yet
safe environment.

“Having the benefit of practical
experience is indispensable when it comes time for students
to enter the industry and start their careers. The
volatility of the markets in the week the challenge started
created an added element of unpredictability, which meant
participants really had to think strategically in order to
gain a competitive advantage over the other teams,” Barton

Chris Smith, General Manager of CMC Markets
New Zealand says this year’s round of competitors were
active risk-takers, making the Challenge incredibly

“Like many traders in the real world, we
saw the students enjoy the highs and lows that come with
trading on volatile products like cryptocurrencies. We’re
proud to continue facilitating an experience where these
future traders, stockbrokers and investors feel comfortable
putting their knowledge to the test.”


© Scoop Media


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