BACHELOR IN BUSINESS ADMINISTRATOR (Hons)

FUTURE

FIN645 – FUTURE AND OPTIONS

INDIVIDUAL ASSIGNMENT 1 - FUTURE TRADING PLAN

(FTP)

PREPARED BY : ASMAA ATIKAH BT. ISMAIL

STUDENT NUMBER : 2020118679

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 for Future Trading
 Strategies for The Future Trading
2.0 Technical Analysis
2.1 Technical Indicator
2.1.1 VOLUME (Explain + Chart)
5-10
2.1.2 MACD
2.1.3 STOCHASTIC RSI
2.1.4 RSI
2.1.5 MOVING AVERAGE
3.0 Fundamental Analysis
3.1 Fundamental Analysis 1 11-12
3.2 Fundamental Analysis 2
4.0 Expert Opinion 13
5.0 Conclusion 14-23
6.0 References 24
7.0 Appendices 25-26

2
 ACKNOWLEDGEMENT

Assalamualaikum, In the name of Allah, the Mighty and Merciful, I beg for his
blessings to allow me to successfully finish my future trading simulation report. The success
and ultimate conclusion of this project need a considerable amount of direction and
cooperation from a vast number of individuals. I'd want to offer my sincere gratitude to
various people who are aiding me with this project. Since the beginning of the semester,
we've been briefed on this work. To begin, I'd want to offer my appreciation to Dr. Md. Khairu
Amin bin Ismail, my professor, for his guidance. I will be in the dark and unable to finish my
task on time if I do not get an acceptable lesson. I would also want to thank Universiti
Teknologi Mara (UiTM) Kota Bharu for giving me the chance to study Futures and Options
this term.

This subject has assisted me in broadening my abilities and knowledge base, which
will be beneficial in the future. Which I can apply to my entry into the trading industry.
Second, I'd like to express my gratitude to all of my friends who have guided me. Without the
assistance of everyone, I may be unable to complete this task on time.

3
1.0 INTRODUCTION
A futures contract is an agreement to purchase or sell a certain amount of an
asset at a certain price at a later date. Futures contracts for any commodity or asset may
be exchanged on an exchange due to the standardisation of their terms. The price is the
only thing that fluctuates. Futures contracts now reflect commodities and financial
instruments such as oil, maize, gold, major stock indexes, and foreign currencies that
you are acquainted with and hear about on a daily basis in the news. Futures trading
takes place on federally controlled exchanges, which act as both a marketplace and a
clearinghouse for post-trade clearing. The buyer and seller generate a new contract with
each futures deal, and the number of contracts formed is endless. Each publicly traded
corporation, on the other hand, has a limited amount of shares of stock accessible for
trading.

This project, I'll use two different types of futures traders. There are FCPO-
Crude Palm Oil Futures to begin with. FCPO is actively used by edible oil and fat sector
players, as well as fund managers and financial institutions, as a risk management
instrument to limit market price variances. FCPO is a structured product that allows
ordinary investors to engage in the crude palm oil market. To have an optimistic view on
crude palm oil price movement, buy low and sell high, and vice versa to keep a bearish
outlook.

Second, futures trading for the FKLI-FTSE Bursa Malaysia KLCI is offered. To
expose market participants to the underlying FBM KLCI components, FKLI uses a
Ringgit Malaysia "MYR" denominated FTSE Bursa Malaysia Kuala Lumpur Composite
Index (FBM KLCI) Futures Contract provided by Bursa Malaysia Derivatives "BMD." It is
used by both institutional and individual investors in their trading portfolios.

4
2.0 TECHNICAL ANALYSIS
2.1 TECHNICAL ANALYSIS
Traders utilise chart analysis to learn about asset generation and consumption,
as well as market psychology. The interplay of these indicators is the cornerstone
of value investing. Trading volume, for example, may be used to predict how long
a rate rise would last. Indicators will be used to produce trading opportunities in
this situation. From this list, I'll discover seven new chart patterns that I can use in
my trading. It's conceivable that I won't need all of them. Instead, I may choose a
handful that I feel will assist me in making better financial choices.

When appraising an object, traders often employ a range of technical indicators.

With so many indicators to pick from, investors must understand how to utilise
them and choose the ones that are best for their needs. Traders may generate
future selections using analytical methods such as more discretionary kinds of
data analysis, such as analysing technical indicators. Technical indicators may be
used in price discovery systems because of their statistical character.

5
2.1.1 VOLUME
I utilise technical analysis as a trading method to help me succeed. In
my trade, I utilise volume as an indication. The number of shares of
stock exchanged on a securities exchange or bourse over a certain
time period is referred to as volume. Volume is a prominent metric that
is usually represented by coloured columns, with green indicating
increasing volume and red indicating reduced volume. Because
volume verifies trend direction, it is essential to incorporate it in a
trading plan.

6
2.1.2 Moving Average Convergence Divergence (MACD)
The Moving Average Convergence Divergence (MACD) indicator is a
trend-following momentum indicator that shows how two price moving
averages join. The MACD is calculated as the difference between the
26-period EMA and the 12-period EMA. The MACD indicator may be
used to determine if a bullish or bearish market trend is strengthening
or weakening.

The difference between the MACD and signal lines is shown by the
histogram for this indicator. It is time to purchase when the MACD line
(blue) crosses and crosses over the signal line (orange), as seen in
circle A below. This indicates that stock prices are rising. When the
MACD line crosses and goes below the signal line, as in circle B,
bearish momentum is present.

Using the MACD Divergence approach, the indicator that gives buying
and selling signals may also be used to spot changes in oncoming
trends. When the highs and lows of the MACD line do not correspond
to the highs and lows of the stock price, this is known as MACD
Divergence. Bullish and bearish divergence are the two types of
MACD Divergence.

7
2.1.3 Stochastic (RSI)
A stochastic RSI may be found by analysing a construal. Overbought
is defined as a number more than 0.8, while oversold is defined as a
number less than 0.2. Anything beyond 80 is considered overbought,
while anything below 20 is considered oversold on a scale of 0 to 100.
Aside from that, we're using the Stochastic Relative Strength Index,
which shows how volatile the market is. The use of RSI readings in
the stochastic formula tells traders if the current RSI value is
overbought or oversold. As a consequence, the stochastic RSI has
been trending lower. As a consequence, the market has reached an
overbought condition. To summarise, the conditions that signify a
futures contract's selling signal are as follows:

8
2.1.4 Relative Strength Index (RSI)

The relative strength index (RSI) is a technical analysis indicator that shows if
a stock is overbought or oversold. The RSI is shown as a line graph that
oscillates between two extremes, with a value ranging from 0 to 100. The
RSI reading of 30 or below suggests the market is oversold or undervalued.

9
2.1.5 Moving Average (MA)

In technical analysis, investors typically use a moving average to

begin the process of price research. A moving average is a statistical
approach that constructs a succession of averages in different subsets
of the complete data set to interpret data points. The moving average
indicator is crucial since it smooth’s out the price information. A single
moving average or a chart with a variable time period might be used
by the investor. Developing Fluency Moving averages, for example,
often use time spans of 13,20,50, and 200 days. The average gets
more sensitive when a shorter day range is utilised to compute it. To
meet their trading goals, the investor may choose a time period with a
flexible length. For short-term trading, it usually uses a shorter moving
average, such as 13 days.

10
3.0 FUNDAMENTAL ANALYSIS
3.1 FUNDAMENTAL ANALYSIS 1
Title : Top Buyer India likely to favour Malaysian palm oil as Indonesian price rise
Source : The Business Time
Date : Friday, 03 December 2021
News contents
This news mentions that India is likely to buy more Malaysian Palm Oil after
export levies imposed by top producer Indonesia hit record highs in the past year.
Indonesia had imposed higher export taxes and levies in the past year, making
prices of palm oil, which had already reached record high this year that will be
more costly of the top buyer.

This news also mentions that Indonesia started taxing crude palm oil exports
again after three years absence in February last year, while exports levies for the
edible oil reached a record high of US$255 per tonne in February earlier this
year.

11
3.2 FUNDAMENTAL ANALYSIS 1
Title : Palm edge higher, but set for weekly drop on lower exports
Source : The Business Time
Date : Friday, 15 October 2021
News contents
This news mentions that Malaysian Palm Oil futures were set for their first weekly
drop in four even as prices recovered slightly on Friday (Oct 15) on the back of a
weaker Ringgit and gains in rival oils.

The benchmark palm oil contract for December delivery on the Bursa Malaysia
Derivatives Exchange rose 24 Ringgit, or 0.5 per cent, to 4,901 Ringgit
(S$1,591.02) a tonne in early trade, after a near 3 per cent drop in the previous
session. This news also mention that it is due to overnight gains in external
markets and weak ringgit.

12
4.0 EXPERT OPINION
1)

2)

13
5.0 CONCLUSION
TRADING PLAN CHART
Trading Plan 1
Position : Short
Data Entry : FKLI DEC 2021
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly

Expert opinion: -
Trading Plan 2
Position : Long
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
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 FEB 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FCPO FEB 2022
because draw the support and
resistance line correctly

Expert opinion: -

14
 TRADING PLAN CHART
Trading Plan 4
Position : Short
Data Entry : FCPO FEB 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly. So I trade again

Expert opinion: -
Trading Plan 5
Position : Long
Data Entry : FCPO MAR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it

Expert opinion: -
Trading Plan 6
Position :Long
Data Entry : FKLI DEC 2021
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FKLI DEC 2021
because draw the support and
resistance line correctly

Expert opinion: -

15
 TRADING PLAN CHART
Trading Plan 7
Position : Short
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly. So I trade again

Expert opinion: -
Trading Plan 8
Position : Long
Data Entry : FCPO FEB 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it

Expert opinion: -
Trading Plan 9
Position :Long
Data Entry : FCPO MAY 2021
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FCPO MAY 2021
because draw the support and
resistance line correctly

Expert opinion: -

16
 TRADING PLAN CHART
Trading Plan 10
Position : Long
Data Entry : FCPO APR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly. So I trade again

Expert opinion: -
Trading Plan 11
Position : Long
Data Entry : FKLI DEC 2021
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it

Expert opinion: -
Trading Plan 12
Position :Long
Data Entry : FKLI MAR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FKLI MAR 2022
because draw the support and
resistance line correctly

Expert opinion: -

17
 TRADING PLAN CHART
Trading Plan 13
Position : Long
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly. So I trade again

Expert opinion: -
Trading Plan 14
Position : Long
Data Entry : FCPO FEB 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it

Expert opinion: -
Trading Plan 15
Position :Long
Data Entry : FCPO MAR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FCPO MAR 2022
because draw the support and
resistance line correctly

Expert opinion: -

18
 TRADING PLAN CHART
Trading Plan 16
Position : Long
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly. So I trade again

Expert opinion: -
Trading Plan 17
Position : Long
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it.
I also trade same trade to get
more profit.

Expert opinion: -
Trading Plan 18
Position :Long
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FCPO JAN 2022
because draw the support and
resistance line correctly. I also
trade same trade to get more
profit.

Expert opinion: -

19
 TRADING PLAN CHART
Trading Plan 19
Position : Long
Data Entry : FCPO FEB 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly.

Expert opinion: -
Trading Plan 20
Position : Long
Data Entry : FCPO MAR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it.
also trade same trade to get
more profit.

Expert opinion: -
Trading Plan 21
Position :Long
Data Entry : FCPO MAR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FCPO MAR 2022
because draw the support and
resistance line correctly. I also
trade same trade to get more
profit.

Expert opinion: -

20
 TRADING PLAN CHART
Trading Plan 22
Position : Long
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly.

Expert opinion: -
Trading Plan 23
Position : Long
Data Entry : FCPO FEB 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it.
also trade same trade to get
more profit.

Expert opinion: -
Trading Plan 24
Position :Long
Data Entry : FCPO MAR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FCPO MAR 2022
because draw the support and
resistance line correctly. I also
trade same trade to get more
profit.

Expert opinion: -

21
 TRADING PLAN CHART
Trading Plan 25
Position : Short
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly.

Expert opinion: -
Trading Plan 26
Position : Short
Data Entry : FCPO JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it.
also trade same trade to get
more profit. I also trade same
trade to get more profit.

Expert opinion: -
Trading Plan 27
Position :Short
Data Entry : FCPO FEB 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FCPO FEB 2022
because draw the support and
resistance line correctly.

Expert opinion: -

22
 TRADING PLAN CHART
Trading Plan 28
Position : Short
Data Entry : FCPO MAR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I gain
of profit because I draw the
support and resistance line
correctly.

Expert opinion: -
Trading Plan 29
Position : Short
Data Entry : FCPO APR 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : I have
the profit because I discipline in
the time when to buy and sell it.
also trade same trade to get
more profit.

Expert opinion: -
Trading Plan 30
Position :Short
Data Entry : FKLI JAN 2022
1. Time Frame : 15
Minutes
2. Major Treat : bullish
3. Indicators : Volume,
Stochastic RSI, Moving
Average, MACD
Fundamental Analysis : Gain of
profit in FKLI JAN 2022
because draw the support and
resistance line correctly.

Expert opinion: -

23
6.0 REFERENCES
1. https://www.businesstimes.com.sg/energy-commodities/top-buyer-india-likely-to-
favour-malaysian-palm-oil-as-indonesian-prices-rise
2. https://www.businesstimes.com.sg/energy-commodities/palm-edges-higher-but-set-
for-weekly-drop-on-lower-exports
3. https://www.bursamarketplace.com/mkt/mygames/game/10708
4. https://www.tradingview.com/chart/CDr5TmTP/

24
7.0 APPENDICES

25
26