Currency Trading Strategy

Forming Groups:  This is strictly a group assignment. Group members are to be selected by the students themselves with the group size to be a minimum of 4 and a maximum of 6 students. Students do not have to be in the same tutorial classes.

  • Each group must email the completed Group Assignment Nomination Form (the MSWord file IFM Group Assignment – GroupNominationForm.docx) with the names and student numbers for each group member and the name and email address of the group coordinator/team leader, to subject coordinator by 5pm (C.O.B) on Friday 18 September 2020. Only emails from UTS student email accounts will be accepted.
  • You must use the one page template provided with this document (the ‘Group Assignment Nomination Form’). Each group will receive a unique group number to be used as a group identifier throughout the duration of the assignment.
  • Failure to comply with these requirements will result in an assignment mark of 0%. The assignment consists of two parts:
  • Writing a report on the movement of the four currencies and the five days’ trading, with detailed comments justifying the daily trades.
  • Trading a $10 million (starting value) simulated currency portfolio over five trading days.




  • Your objective is profit maximization through trading four currencies during the fiveday trading period Mon 28 Sept – Fri 02 Oct 2020.
  • Each group is allocated an AUD 10 million (AUD – Australian dollars) simulated (paper trade) portfolio at 9am on 28 Sept 2020.
  • By 5pm (at the latest) on 02 Oct 2020, you must sell whatever foreign currencies you hold in your portfolio and buy back our home currency, Australian dollars. You will then calculate your overall profit or loss for trading during this period. RULES
explicitly indicate the four foreign currencies
  • You must you have chosen, and justify your choices for each foreign currency in the report.
  • The trading period begins at 9am on Monday, 28 Sept and ends strictly at 5pm Friday, 02 Oct.
a minimum of one trade
  • You must conduct on each of the five trading days.
  • You can choose to trade only part of the currency/currencies you hold and keep the remaining currency/currencies. However, you cannot short sell currencies, i.e. you can only sell what you currently hold in AUD or foreign currencies purchased previously.
  • Each trade (or holding of the currency/currencies) must be well motivated and justified

(preferably linked to a source).                           



By 8pm on each of the five trading days the group leader must email the supplied spreadsheet with the subject title “Group XX: IFM Trading Update (Day YY)”:


  1. An excel spreadsheet updated with their group’s latest trades – use the provided Excel format for trade documentation (will be made available closer to the date).
  2. Proof of traded rates of the day – take a screen shot or PDF print of the exchange rates you decide to trade from above web sites as a proof of your recorded trade rate.


Important notes:

  • Only emails sent from UTS student email accounts will be accepted.
  • Documentation must be accurate and easy to understand.
  • It is your responsibility to ensure that the assessor has no difficulty to understand each trade and the calculations and the motivations for your trades.
  • If the assessor of your trades finds it difficult (or impossible) to understand the trades, the calculations and the motivations (i.e. it is not clear what you have done, how you have done it and why you have done it), your group will receive zero marks for the assignment.




You must write a report that covers the following areas:

  • Explaining the motivation of your choice of the four currencies
  • Justifying your currency trading strategy
  • Discussing the profit/loss of your trading strategy


The report will be marked on both its content (discussions, analyses and arguments) and the quality of its write-up (organization, concision, clarity, grammar and punctuation).  In summary, your report will consist of:


  • The cover sheet
    • All students’ names and SID numbers must appear on it
    • You must use the one page template provided with this document (the MSWord file IFM Group Assignment – CoverSheet.docx)
  • The main body of the report
    • The main body of the report MUST be no longer than 5 pages
  • Appendices
    • You may also include no more than 5 pages of appendices
    • Include references here

The total written document will be a maximum of 11 pages, including the Title Page. Everything beyond these pages will not be graded.



Think carefully about how to provide information: For example, including some graphs and tables can speak more loudly than a million words. Label the graphs and tables with titles or headers, write footnotes for table(s), label axes, etc., so it is clear what information you are presenting. A document that does not look professional, contains too many typos or grammatical errors or is incorrectly submitted will be penalised 10%.





1.  Executive Summary (2 marks)


Include a brief (half a page) summary of the contents of your report and highlight its major conclusions.


2.  Currency Market Overview and Forecast (11 marks)


2.1 Provide a table showing the monthly average exchange rate and a composite chart of daily exchange rates for each of the four currencies that you selected for the period 1 July 2020 to 25 Sept 2020. The history of the exchange rate can be found here.


2.2 Provide a brief summary of the currency market movements and activities from 1 July 2020 to 25 Sept 2020, such as international currency market movement; major events or announcements that may have caused noticeable movements in currency markets, etc.


2.3 Discuss the possible reasons for the exchange rate movements for the currencies relative to AUD, preferably linked to some analysis of fundamental economic policy or variables based on some sources of government policy announcement or press reports, e.g. Financial Times, Wall Street Journal etc.


3.  Trading Strategy Analysis (10 marks)


In this section you will analyse the trading strategy of your group and your financial results.

Your discussion in this section should include, but not be limited to, the following: motivation or fundamental analyses that justify the choice of currency purchase or sale for each day, discussion of the results of profit/loss from the trading, etc. preferably linked to some analysis of fundamental economic policy or variables based on some sources of government policy announcement or press reports, e.g. Financial Times, Wall Street Journal etc.


Quality of Report (2 marks).


1 bonus mark will be added to your total mark if your group achieves a net profit by the end of 5 days’ trading. The total maximum mark is capped at 25 marks.





Final report submissions

  • The group coordinator must email the final document in pdf or Word format and cc to all group members with email title of “Group XX: IFM Final Report”.
  • The assignment must be electronically submitted by email to the Subject Coordinator by 5pm (C.O.B) Friday 16 Oct 2020, preferably in MSWORD format or as a PDF file.
  • The group leader must email the electronic report using their official UTS email address.
  • A printed copy of the report is NOT required, due to the COVID-19 restrictions.
  • Penalties of 10% each day apply to late submissions.



Final Remarks:

  • For fair treatment to all students, questions related to the assignment should be raised on the UTSOnline Discussion Board. Questions through email will not be answered. The tutor should NOT be asked about the assignment.
  • Please consult the latest version of the UTS Business School Writing Guide.