APU students triumph in CMT investment challenge

Two students from the Asia Pacific University of Technology & Innovation (APU) have emerged victorious in the prestigious CMT Association‘s February 2024 Investment Challenge.

Lai Shu Juan and Paveedra Devi secured the top positions in the lowest Max Drawdown category, showcasing their exceptional skills in financial analysis and investment strategies.

CMT Association: A platform for practical learning

The CMT Association’s biannual Global Investment Challenge provides a valuable platform for participants to hone their technical analysis skills in a simulated real-world environment.

Mentored by Dr Ahmad Danial Zainudin, Lai (Investment and Risk Management) and Paveedra (Financial Technology) competed against 552 participants from 27 countries and 32 universities.

Throughout the eight-week virtual competition, the students utilised financial analysis software to simulate real-world investment scenarios.

Their strategy involved a thorough analysis of the NASDAQ-100 stock index, considering both macroeconomic and microeconomic factors influencing share prices.

They also focused on understanding investment risk tolerance and effective money management practices.

Lai opted for a strategy favoring sectors with lower volatility, such as retail and consumer staples, aiming for stability during market fluctuations.

Paveedra, on the other hand, employed a diversified approach, allocating funds across technology, healthcare, finance, and consumer goods sectors.

This balanced strategy sought to achieve growth potential while incorporating dividend-yielding stocks, reflecting Paveedra’s strong risk management skills.

The competition emphasised adherence to technical analysis principles.

APU sets high bar for students

Participants were required to submit trade ideas with detailed justifications, including entry points, target prices, and stop-loss orders, all supported by comprehensive chart analyses demonstrating the rationale behind their decisions.

A key metric in the challenge is the Max Drawdown, which measures portfolio risk by analysing the maximum decline in value before reaching a new peak.

A lower drawdown signifies a more stable and resilient investment strategy. Lai and Paveedra achieved a remarkable Max Drawdown of 0.67%, surpassing prestigious institutions like the University of Toronto’s Rotman School of Management (2.28%) and Taylor’s University (2.57%).

Both students expressed gratitude for the opportunity to participate. “The competition deepened my understanding of professional investment strategies,” said Lai.

Paveedra echoed this sentiment, highlighting the practical insights gained in decision-making, risk management, and trading essentials.

Dr Ahmad Danial Zainudin, their mentor, applauded their dedication and commitment. “Despite limited trading experience, their eagerness to learn and apply theoretical knowledge was evident throughout,” he remarked.

Associate Professor Dr Chong Lee Lee, Head of APU’s School of Accounting and Finance, emphasised the significance of this achievement.

“Their success underscores the effectiveness of our curriculum, which bridges the gap between theory and practical application,” she stated.

Dr. Lee concluded by noting that Lai and Paveedra’s triumph signifies the talent nurtured at APU and sets a high bar for future finance professionals.