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University Trading Challenge:  A Competition for Finance, Economic and Math Students

The University Trading Challenge (UTC) is open to full-time students in Finance, Economics, Math and Business programs at any university. The competition has three main components: Long-Term Portfolio, Short-Term Trading, and Case-Study Presentation. The live portion of the competition (Short-Term Trading and Case-Study Presentations) will take place December 9, 2011 at the Wasserman Trading Floor at Baruch College in New York.

Participants experience an incomparable simulation of real-world trading while demonstrating their abilities to analyze, strategize, make decisions, and give presentations. They get an invaluable glimpse into the real world of the capital markets as well as true insight into themselves and their suitability to a finance career.

The UTC lets finance students compete in intense, interactive competitions.

GET NOTICED: The University Trading Challenge is supported and attended by the who’s who of the industry. You’ll meet the leaders of the finance world, who are there looking for you. You are the young talent they want to employ. The UTC is your opportunity to show them you’re ready by demonstrating your trading abilities and showcase your potential to the right people.

LEARN BY DOING: Classroom study is the core of any education, but we learn best by doing. Students who compete in the University Trading Challenge, a simulated real-market competition, gain intense insight into the real world of commodities trading—and their own talents and abilities.

TAKE FLIGHT: You and your fellow student participants are tomorrow’s finance leaders. After taking part in the UTC, you will hit the ground running, thanks to everything you’ve learned and experienced, and all the influential people you’ve met.

For More Information, please visit www.UniversityTradingChallenge.com

Now that you’ve decided to use simulations in your programs, let’s look at some best practices for evaluating simulation results.

A well-designed simulation will only be effective if you are able to evaluate the results – and pass those results on to the participants. As we’ve discussed, immediate feedback is a benefit of simulations, so the evaluation of final outcomes should be fairly immediate so that participants can quickly apply what they’ve learned. Let’s discuss some ways to create simulation evaluations in a way that makes them useful to both the organization and the participants.

The first step in creating effective simulation evaluations is to look closely at the delivery method. Obviously if the simulation is a complex, computer-based operation, then the programming should also deliver an evaluation in an immediate context. For example, a flight simulator will create a plane crash if the pilot has made grave mistakes. Action-based simulations, like putting out a fire or building a piece of furniture should not only be based on the quality of the final outcome but also on the time it took to reach the outcome. If the fire has been extinguished, how much time did it take and how much structural damage was done? Or, if the chair has been assembled, how long did it take and will it collapse when someone sits in it? Case study simulations should be based on the outcomes and, like all of the other simulations, on the consequences of wrong actions. We will examine this in just a moment. Finally, if a group is involved, be sure to evaluate how well the group worked together as well as the contributions of individual members.

For any simulation, whether complex or not, take the time to list the desired outcomes. For example, a financial simulation could have outcome levels, such as cash savings of $100,000, $75,000, and so on. An HR-based simulation could have outcomes of successfully delivering permanent pay cut notices with a minimum of attrition. No matter what the topic of the simulation, the evaluation has to start with the desired outcomes.

Reaching a successful outcome is one aspect of simulation, but participants should also know if they have taken the preferred steps for those outcomes. The preferred steps should coincide with applicable laws, natural phenomenon, organizational procedures, and even organizational culture. For instance, the HR simulation may end with a low attrition number but what happens if the participant tells simulated employees that their pay will rise back to its original point within a few months, when the cut was permanent?

Not only is it necessary to examine the preferred steps for evaluation, it is also necessary to look at the consequences for wrong actions. One way to design this part of the evaluation is through the use of a decision tree that maps out the right steps, the wrong steps, and the consequences. Consequences for wrong steps are a big part of simulation, because they help the participants learn and apply knowledge to the situation. With that in mind, remember to explain consequences in terms that are correlated with the simulation, such as lost dollars, lost time, or potential attrition rates. The ability to compare right steps with wrong steps using the same units is invaluable in application. Along these lines, though, be sure to have moderators point out correct thought processes even if the eventual step is incorrect. This may be especially true in group simulations, where some group members wanted to take the correct step or process.

Finally, create a matrix or rubric that shows the criterion for the evaluation so that it is useful to both the moderator and the participants. For example, if a participant or group chooses a right step but makes errors along the way, their partial credit should reflect this and point out what was correct in their thought processes. In addition, weights in the evaluation should coincide with weights in the real world. In other words, a loss of dollars that causes an organizational bankruptcy should be weighted much heavier than a loss of dollars that barely causes a shudder. Both are wrong, but, as in the real world, sometimes the wrong choices carry degrees of consequence. Keep in mind that choices that are contrary to organizational culture or applicable law should be heavily weighted, as well.

Here is one final tip on evaluation: if the simulation has multiple parts, be sure to create an evaluation for each part.

Now that you’ve decided to use simulations in training interventions, let’s look at some of the components of successful simulations

As we’ve discussed, a simulation can take many forms, from real-life case studies to an engine failure on a passenger jet. But no matter what the topic, a simulation will be effective if it makes use of several important components. Let’s examine those components step-by-step so that you can build effective simulations for any group or desired outcome.

First, and possibly most obvious, a simulation must be realistic. Many times, we want to accept a case study or role-play during training as a simulation. But the key aspect we want to examine is the realism of the simulation, something that is sometimes lost in cases and role-plays. A simulation must make use of current external and internal forces that will act on any decision made in real life. In fact, each simulation for each group and for each time period probably needs to be different. Are the needs of your organization the same as they were six months or a year ago? They probably are not, so your simulations should match. Be as realistic as possible in order to create the real world in a simulated and controlled environment. (more…)

Simulations are also useful in online learning. Let’s look at some ways to use simulation concepts with virtual training.

Training has come a long way since the existence of only classrooms and on-the-job interventions. Online learning has changed the way we impart knowledge to participants all over the world, but it has also created some unique problems. A simulation can be part of your online learning program, so let’s discuss how you can do this without running into the issues that online learning may create.

Online learning is highly effective in so many situations, especially if your target audience is spread over a wide geography. But online learning can also have the effect of putting learners out there completely alone, with no interaction with fellow learners or the facilitators. In some cases this is fine, but in some cases a simulation would be an excellent way to go against the norm of isolating learners. (more…)

We’ve discussed some good reasons to implement simulations in your organization. Let’s take a look at the distinct advantages of simulations over other types of training interventions.

When you take the time to consider the methods for implementing a simulation, such as online, written, gaming, group participation, or individual, it’s easy to see that simulations can fit with any type of program. But it’s also a good idea to think about the specific benefits and advantages of simulations, especially if you are going to have to justify an increase in cost or time for an overall training program.

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In this series of articles, we will look at the use of simulations in effective training interventions. First, let’s find out why an organization would want to use simulations in its training program.

In the past, the mention of training simulations brought pictures of high-tech cockpit mock-ups and controlled burning buildings to mind. But in today’s environment, a training simulation can occur in a classroom or online with just about any line of professionals. We know that simulations in highly technical or dangerous situations are necessities, but why should we consider using simulations in various aspects of business training, such as strategy, operations, or even leadership? The answers are fairly simple, so in this series we will discuss simulations and how you can effectively implement them in your organizations. (more…)