Not one, but two SMU teams have done us proud at the prestigious CME Group Commodity Trading Challenge 2013!  They beat teams from renowned institutions such as Duke University and Imperial College London to emerge seventh and 16th in the final ranking of the competition.  They were also the only Asian team to be in the top 30!  (see final results here)

Ranking 4^th in the preliminary round and 7^th in the Championship round was Team Merchant 2, comprising Lim Tern Poh (leader), Akshat Kukreja, and Peh Ying Jie.

Ranking 12^th in the preliminary round and 16^th in the Championship round was Team Merchant 1, comprising Alex Fong Jun Kang (leader), Song Jia Shun, Heng Jin Hau, Wee Wei Lee, and Tan Wei Li.

The teams worked hard and exhibited great teamwork, sharp analyses, prudent risk management, and sound understanding of the futures market.  All team members are from SMU Lee Kong Chian School of Business, and several are currently taking the International Trading Concentration at SMU’s International Trading Institute (ITI@SMU).

The CME Group Commodity Trading Challenge is a four-week electronic trading competition where teams of undergraduate and graduate students competed in the trading of Crude Oil, Gold and Corn Futures in a simulated trading environment on a real-time professional trading platform provided by CQG.

Started more than a decade ago, the Challenge has seen an increasing number of institutions participating through the years, with 179 institutions from 26 countries in over 320 teams competing this year.  The competition offers a unique opportunity for student teams of three to five members each to pitch their trading skills against their global counterparts, as they learn pick up new techniques for trading futures.

Over a month of intense competitions, the SMU teams successfully emerged as the top 5% in the preliminary round to advance to the Championship round.  In the process, they triumphed over teams from prestigious institutions such as Duke University, Harvard University, Imperial College, London School of Economics, as well as top universities in the Asia.  Both teams were invited to Chicago for a networking dinner on 12 April.

“This competition has given great exposure for our students.  I am heartened that the training that the students received while on the International Trading Concentration provided them with the added advantage that enabled them to distinguish themselves from the other teams around the world,” said Christopher Chow, Associate Director of ITI@SMU.

Team leader of Team Merchant 2 and third-year business undergraduate, Lim Tern Poh, will be representing SMU at the CME Group’s Day of Market Education in Chicago on 12 April 2013.  Still excited about the win, he shared: “My trading experience in the competition was amazing and I am glad that my team achieved great result in our first attempt.  In SMU, we learn about the fundamentals of the different commodities through non-credit courses, and the competition has helped us to better appreciate the training we received.”

“Besides knowledge of the commodities, our risk management (position sizing), psychology (mentality), and trading system (methodology) were also tested.  To be a successful trader, I believe that the way we respond to losing and winning positions is as important as being knowledgeable about the commodities.  It is human nature to keep losing positions and pray that they will reach the breakeven points, and sell winning positions to realise quick profits.  To be a successful trader, we need to reverse them,” he added.

Well done, teams!

[Featured photo: Back row: (from left) Akshat Kukreja, Lim Tern Poh, Tan Weili, Song Jia Shun. Front row: (from left) Pierre Peh, Wee Wei Li, Heng Jin Hau, Alex Fong]