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Competition Rules

Investment groups are expected to follow the Investment Competition rules stated in this website. Failure to comply with these rules will result in a warning and/or disqualification depending on the severity of the infringment.The board of B&R Beurs reserves the rights to change the rules of the competition.

Rules Simulation Competition | November 14th - January 6th

  1. The competition is about investing in American listed securities. The competition takes place on the MarketWatch platform.

  2. On MarketWatch, you can start trading from the 26th of November 2021 and the competition lasts until the 6th of January 2022. 

  3. Only investment groups registered with B&R Beurs are allowed to participate.

  4. Each investment group will start with simulated capital of $10.000 cash. Reseting one's account is not allowed. 

  5. Each investment group must make an account on the MarketWatch platform with their gmail account via their email that has been to sent their account. 

  6. The deadline for opening an account is the 3rd of December, otherwise the investment group is not taken into account for the final leaderboard.

  7. All groups must have made their first trade by the 10th of December. 

  8. The ranking of a competitor is updated automatically on the MarketWatch platform. 

  9. Investment groups compete against each other on the MarketWatch platform to acquire the highest return on their portfolio. The current value of the portfolio is computed as marked-to-market.

  10. ​​During this simulation competition, a fair-play policy applies. If you generate returns by making trades that are in principle not possible in real-life scenarios, you will be taken out from the competition.

  11. The winner of the simulation competition will receive a cash prize of €500.

Rules Flow Traders Investment Competition | January 6th 2022 - July 12th 2022
  1. The Investment Competition is about financial securities available in financial markets.
  2. The Investment Competition for the academic year 2020/2021 starts on Thursday, November 5th 2020 and ends on Thursday, July 1st 2021.
  3. The Investment Competition is only between investment groups registered with B&R Beurs and at the Chamber of Commerce.
    1. New Investment Groups need to be formed before the start of the Investment Competition.
    2. New Investment Groups need approval from the board to participate in the Investment Competition.
  4. The Investment Competition is exclusively accessible to B&R Beurs members which are members of an investment group.
  5. Each Investment Group has to define an initial deposit per person before the official start of the Investment Competition. This amount can be different for each group (e.g. 200, 250, 300, 400).
  6. An Investment Group has to make their first investment before March 1st, 2021 to be included in the ranking.
    1. The board can authorize an exception to this rule if it is well-argued.
  7. In order to be included in the ranking, the board of an Investment Group has to participate in the Introductory Investment Training provided by the board of B&R Beurs.
    1. The board of B&R Beurs can authorize an exception to this rule.
  8. The weekly ranking is based on risk-adjusted returns (Modigliani Risk-Adjusted Performance). The weekly ranking is computed during the weekend, once the North American markets are closed. The following benchmarks will be included in the ranking: Dutch AEX, Eurostoxx 200 Large and the S&P500 denominated in Dollars. The board can also decide to include partner investment societies into the ranking as a benchmark.
  9. The weekly ranking consists of risk-adjusted return, total return, change in total return and volatility.
    1. The risk-adjusted return will be the Capped M2 Measure, defined as:
      1. Rfcml,T The cumulative risk-free rate that investors can get by investing in the risk-free asset at the beginning of the competition and rolling over on a weekly basis. 
        RTT The cumulative return of the portfolio.
        DT RT- Rfcml,TThe excess return of the investment portfolio over the cumulative risk-free rate at the time of measuring. 
        The standard deviation of the weekly excess returns of the benchmark.
        The standard deviation of the weekly excess returns of the investment portfolio.
        f A floor on the volatility that an investment group can have. Combined with the maximum function, this essentially says that investment groups cannot have volatility lower than this floor.
        c Cap which equals 3.
    2. The benchmark is the Ishares MSCI World Eur Hedged UCITS ETF
    3. The risk-free rate will be based on the yield of German government bonds matching the maturity of the Investment Competition, 9 months
  10. Returns are calculated by the following formula: (1 + old cumulative return) * (1 + this week’s return) – 1. This week’s return is calculated as follows: (Current value of the portfolio – last week’s value of the portfolio -/+ cash inflows/outflows) / last week’s value of the portfolio. In this formula, any deposits or withdrawals are accounted for in the cash inflows/outflows. 
    1. If there is extra money on the bank account, the quantity of money will be noted and subtracted from the current value of the portfolio. It will not count as extra profit. E.g. a group of 15 students at 300€ each could have 4600€ instead of 4500€ on the bank account because of leftovers. The return will be calculated on 4500€ and not 4600€, the difference will be constantly subtracted from the current value of the portfolio to calculate the group’s return. Thus, extra deposits will not count.
  11. Members joining later than the official start of the Investment Competition will have to pay the initial amount agreed upon by the group, minus the loss, or plus the profit, at the time of the joining. The initial capital will then increase by the initial amount, and by paying the profit or loss, the group’s return stays the same. E.g. if the initial amount is 300€, a member wants to join in January, the group is at +10%, the new member will pay 330€. The initial group’s endowment will increase by 300€, maintaining thus the group’s return of +10%. This logic applies also to losses, and if a member leaves a group during the Investment Competition.
    1. If a member gets expelled from an investment group, he/she will receive his/her initial investment plus the profit or minus the loss at the time of the suspension, as shown in article 10. The initial investment of the member will be removed from the group’s initial capital, and the group’s return recalculated.
    2. Each investment group is free to add a clause to the situation, such as a fine for joining later or leaving earlier. A fine will not influence the returns.
  12. Trading bank accounts of Investment Groups have the sole purpose of trading. All money removed from the account during the year for other purposes will be accounted for as a loss (e.g. dinners), except if a member gets expelled.
  13. Any potential trading cost credit received from the broker is not counted in the group’s return. Such free costs will thus be compensated for in the calculation of returns by subtracting them from the portfolio value. a. This rule was agreed upon during the half-yearly general assembly of members in January 2015.
  14. An Investment Group needs at least 10 unique members when it is formed, but needs a minimum of 7 when it continues after one year. The maximum is 30 members. Members are allowed to join a maximum of 1 Investment Group. 
    1. The board can authorize an exception to the lower bound of 7 with regards to the continuation of an Investment Group if it is well-argued.
  15. An Investment Group’s minimum initial total deposit is 2,000€.
  16. Investment Groups have to use a broker accepted by the board. The board needs to have access to the account to calculate the return.
  17. Investment groups must respect the Dutch law. Restrictions include:
    1. Maximum deposit of 9075.60€ per member,
    2. Professional investing is not allowed,
    3. Not allowed to use extra deposits to cover losses, don’t invest more than 100% of the capital (e.g. leverage restriction, no naked short-selling, no credit line), this means investments are only allowed with the money in the 'free space',
    4. The initiative to found an investment group didn’t come from the financial institution where the group has its trading account.
  18. Only the following investments are allowed:
    1. Buying a stock, ETF or Turbo.
    2. Buying a call and/or put options.
    3. Writing options is never allowed.
  19. Investment Groups need to be registered with their current chairman and treasurer at the Chamber of Commerce by the end of the Investment Competition.
  20. If an Investment Group does not comply with the rules above, its participation will not be considered in the Investment Competition and its return not calculated. It will have the status N/A until the compliance is effective.