BACHELOR IN BUSINESS ADMINISTRATION (Hons)

FINANCE (BA242)

FIN 645 FUTURE AND OPTIONS

INDIVIDUAL ASSIGNMENT 1
FUTURE TRADING PLAN (FTP)

PREPARED BY : MUHAMMAD DZAHIRULHAQ BIN ZUHAIDI

ID NUMBER : 2019800186

PREPARED FOR : DR. MD. KHAIRU AMIN BIN ISMAIL

SUBMISSION DATE : 11 December 2021

TABLE OF CONTENTS

Contents Page
Acknowledgement 3
Introduction
 Types of Future Trade 4
 Trading Plan For Future Traders
 Strategies For The Future Trading
Technical Analysis
Technical indicator
i. MOVING AVERAGE
5-9
ii. RSI
iii. STOCHASTIC RSI
iv. MACD
v. VOLUME (Explain + Chart)
Fundamental Analysis 10-11
Expert Options 12
Conclusion 13-22
References 23
Appendices 24-25

2
ACKNOWLEDGEMENT

Assalamualaikum, In the name of Allah, the mighty and the merciful, with his help I
can finish this report on future trading simulations. It took a lot of help and guidance from a
lot of people to make this assignment go well and finish on time. I want to say thank you to a
lot of people who are helping me with my project. Before this semester even began, we were
given a briefing about this assignment. The first thing I want to say is thank you to my
teacher, Dr.Khairu Amin bin Ismail. He helped me a lot. There is no way I will know how to
do this assignment on time without a good class. University Technology Mara (UiTM) Kota
Bharu is also to thank for giving me the chance to learn Futures and Options this term.

This lesson has helped me improve my skills and learn more things that will help me
in the future. Which, I can use this knowledge to get into the trading market, as well. To
thank my friends who help me, I want to say "thank you." I might not be able to finish this
assignment on time if I don't get help from everyone.

3
INTRODUCTION

A futures contract is a obligation to buy or sell a certain amount of an asset at a

certain price at a certain time in the future, at a certain date. As long as the terms of futures
contracts for each commodity or asset are the same, they can be traded on a market like the
stock market. The only thing that changes is the cost. In the modern world, futures contracts
are made up of commodities and financial instruments that you hear about in the news every
day. These things include oil, gold, popular stock indices, and currencies from other
countries. Futures trading takes place on federally regulated exchanges. These exchanges
help buyers and sellers find each other, as well as help with post-trade clearing. In futures
trading, the buyer and seller make a new contract with each trade. There are no limits on
how many contracts can be made, so there are always new contracts being made. Each
company that is publicly traded has a limited number of shares of stock that can be bought
and sold.

TYPES OF FUTURE TRADERS

Futures traders come in two types: long-term and short-term. Crude Palm Oil Futures
is the first thing to look at. Crude Palm Oil Futures Contracts traded on Bursa Malaysia
Derivatives (BMD) are traded in Ringgit Malaysia 'MYR' dollars. This gives market
participants a global price benchmark for the Crude Palm Oil Market, which is why FCPO is
used. FCPO is used by people in the edible oils and fats industry as a risk management tool,
as well as by fund managers and financial institutions to keep prices stable in the market.
FCPO is a way for people who don't have a lot of money to get into the Crude Palm Oil
market. For a bullish view on the movement of Crude Palm Oil prices, buy low and sell high.
For a bearish view, buy low and sell high, or the other way around.

FKLI- FTSE Bursa Malaysia KLCI futures is the second trade we're going to make. It
uses a Ringgit Malaysia "MYR"-denominated FBM Kuala Lumpur Composite Index Futures
Contract that is traded on the Bursa Malaysia Derivatives 'BMD' exchange. The FBM KLCI is
the FTSE Bursa Malaysia Kuala Lumpur Composite Index. It is used by both institutional and
small-time investors in their trading portfolios.

4
TECHNICAL ANALYSIS

i) VOLUME

I use technical analysis as a way to be more successful when I trade. Volume is the
indicator I use when I trade. On a securities exchange or bourse, volume can be used to
measure how many shares of stock are traded in a given amount of time, such as one
day. If you look at volume, it's usually shown in coloured columns. Green is for more
volume, and red is for less volume, so the green colour shows more volume and the red
colour shows less. There are a lot of reasons to put volume in your trading strategy. It
helps you figure out which way the market is going.

5
ii) Moving Average Convergence Divergence (MACD)

MACD is a momentum indicator that shows the relationship between two moving
averages of a stock's price. It shows how these two moving averages are related to each
other. The MACD is made by subtracting the 26-period EMA from the 12-period EMA.
There is a tool that can help investors figure out whether or not prices are moving in a
bullish or bearish direction. It's called MACD.

The difference between the MACD line and the signal line is represented by the
histogram for this indicator. When the MACD line (coloured blue) crosses and goes above
the signal line (coloured oranges), as seen in circles A below, it is time to buy. This
suggests that stock prices are trending upward. When the MACD line crosses and travels
below the signal line, such as circle B, it indicates the occurrence of bearish momentum.

This indicator providing signals for buying and sells, may also be used to detect changes
in forthcoming trends by employing the MACD Divergence method. MACD Divergence
occurs when the high and low movements of the MACD line do not correspond to the
high and low movements of the stock price. MACD Divergence is classified into two types
which are bullish divergence and bearish divergence.

6
iii) Stochastic RSI

A Stochastic RSI can be found by looking at readings above 0.8 and below 0.2. A
reading above 0.8 is called overbought, and a reading below 0.2 is called oversold.
People who buy more than 80 and sell less than 20 on a zero to 100 scale are called
"overbought." Other than that, we are also using Stochastic RSI, which shows us how
the market is moving over time. Use RSI values in the Stochastic formula to figure out if
the current RSI value is too high or too low. Thus, the Stochastic RSI is going down. So,
the market is in an overbought state. To put it simply, the conditions that signal that
someone is ready to sell the futures contract.

7
iv) Relative Strength Index (RSI)

Technical analysis use the relative strength index to figure out if a stock is too high in
price. It looks at how much the price of a stock has changed recently to figure out if it's
too high in price. Between two extremes, the RSI is shown on a line graph that moves
between them. It can be read from zero all the way up to 100. An RSI reading of 30 or
less means that a stock is oversold or undervalued, which is bad news for the stock.

8
v) Moving Average

In technical analysis, moving averages are also used by investors to start the process of
price analysis. Moving average is a way to look at data points by setting up a series of
averages in different parts of the whole data set. It is important to use the moving average
indicator because it helps to smooth out the price details. They can put one moving
average on their chart or have a chart with many different time frames. In order to
calculate an average, an investor can choose any time period they want to use. 13 to 20
day, 50 to 200 day are some of the most used moving average time ranges. When you
use a shorter range of days to make an average, the more sensitive the average would
be. People who invest can choose a time frame that fits their own trading goals. Use a
shorter moving average for short-term trading, like one that has 13 days on it. This is
usually the case.

9
FUNDAMENTAL ANALYSIS

FA 1

Title :Better planning needed to attract millennial talent in palm oil industry

Source :New Straits Time

Date :Friday, 12 November 2021

News Contents
This news mention that few would deny that the palm oil industry has labour pains. the
labour shortage has denied the industry of billions of ringgit in potential revenue. It is even
more painful knowing that the world price of palm oil has hit that rare level of RM5,000
per tonne. The pandemic has disrupted the supply of foreign labour to the industry.

It, therefore, came as a relief recently when the government had given the go ahead to
bring in some foreign labour. It is time for better planning to secure a sustained supply of
workforce for the industry. Labour is important in the sustainability equation.

10
FA 2

Tittle :FGV passionate about changing Malaysian palm oil narrative - CEO

Source :The Edge Markets

Date :Wednesday, 24 November 2021

News Contents
This news mention that FGV Holdings BHD is passionate about changing the narrative for
Malaysian palm oil by taking a holistic view and approach towards sustainability to ensure
that environmental, social and governance (ESG) considerations continue to take the
centre stage in all of oil palm plantation company FGV’s undertakings, according to FGV
group chief executive officer (CEO) Mohd Nazrul Izam Mansor.

This news also mentions that the strategy to improve access to healthcare for our
workers, FGV has established 13 clinics in our plantations that are located in remote
areas, with the guidance and approval of the Ministry of Health. Furthermore, they are
establishing mobile shops to make it more convenient for our workers to have constant
access to fresh fruits and supplies.

11
EXPERTS OPTIONS

12
 CONCLUSION

TRADING PLAN CHART

Trading Plan 1
Position : Short
Data Entry : FCPO DEC 2021
Technical :
i. Time Frame : 15 Minutes
ii. Major Treat : bullish
iii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 2
Position : Short
Data Entry :FCPO JAN 2022
Technical :
i. Time Frame : 15 Minutes
ii. Major Treat : bullish
iii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 3
Position : Short
Data Entry :FCPO FEB 2022
Technical :
i. Time Frame : 15 Minutes
ii. Major Treat : bullish
iii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line

13
very carefully and correctly.

Expert Opinion :-
TRADING PLAN CHART
Trading Plan 4
Position : Short
Data Entry : FCPO MAC 2022
Technical :
iv. Time Frame : 15 Minutes
v. Major Treat : bullish
vi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 5
Position : Short
Data Entry :FCPO APR 2022
Technical :
iv. Time Frame : 15 Minutes
v. Major Treat : bullish
vi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 6
Position : Short
Data Entry :
Technical :
iv. Time Frame : 15 Minutes
v. Major Treat : bullish
vi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

14
Expert Opinion :-

TRADING PLAN CHART

Trading Plan 7
Position : Short
Data Entry : FKLI DEC 2021
Technical :
i. Time Frame : 15 Minutes
ii. Major Treat : bullish
iii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 8
Position : Short
Data Entry : FKLI DEC 2021
Technical :
iv. Time Frame : 15 Minutes
v. Major Treat : bullish
vi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 9
Position : Long
Data Entry : FCPO JAN 2022
Technical :
i. Time Frame : 15 Minutes
ii. Major Treat : bullish
iii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

15
Expert Opinion :-

TRADING PLAN CHART

Trading Plan 10
Position : Long
Data Entry : FCPO FEB 2022
Technical :
vii. Time Frame : 15 Minutes
viii. Major Treat : bullish
ix. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 11
Position : Long
Data Entry : FCPO MAR 2022
Technical :
x. Time Frame : 15 Minutes
xi. Major Treat : bullish
xii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 12
Position : Short
Data Entry : FCPO JAN 2022
Technical :
iv. Time Frame : 15 Minutes
v. Major Treat : bullish
vi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

16
Expert Opinion :-

TRADING PLAN CHART

Trading Plan 13
Position : Long
Data Entry : FCPO FEB 2022
Technical :
xiii. Time Frame : 15 Minutes
xiv. Major Treat : bullish
xv. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 14
Position : Long
Data Entry : FCPO MAR 2022
Technical :
xvi. Time Frame : 15 Minutes
xvii. Major Treat : bullish
xviii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 15
Position : Long
Data Entry : FCPO APR 2022
Technical :
vii. Time Frame : 15 Minutes
viii. Major Treat : bullish
ix. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

17
Expert Opinion :-

TRADING PLAN CHART

Trading Plan 16
Position : Short
Data Entry : FKLI MAR 2022
Technical :
xix. Time Frame : 15 Minutes
xx. Major Treat : bullish
xxi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 17
Position : Long
Data Entry : FCPO JAN 2022
Technical :
xxii. Time Frame : 15 Minutes
xxiii. Major Treat : bullish
xxiv. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 18
Position : Long
Data Entry : FCPO FEB 2022
Technical :
x. Time Frame : 15 Minutes
xi. Major Treat : bullish
xii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

18
 Expert Opinion :-

TRADING PLAN CHART

Trading Plan 19
Position : Long
Data Entry : FCPO MAR 2022
Technical :
xxv. Time Frame : 15 Minutes
xxvi. Major Treat : bullish
xxvii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 20
Position : Long
Data Entry : FCPO JAN 2022
Technical :
xxviii. Time Frame : 15 Minutes
xxix. Major Treat : bullish
xxx. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 21
Position : Long
Data Entry : FCPO JAN 2022
Technical :
xiii. Time Frame : 15 Minutes
xiv. Major Treat : bullish
xv. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

19
 Expert Opinion :-

TRADING PLAN CHART

Trading Plan 22
Position : Long
Data Entry : FCPO JAN 2022
Technical :
xxxi. Time Frame : 15 Minutes
xxxii. Major Treat : bullish
xxxiii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 23
Position : Long
Data Entry : FCPO FEB 2022
Technical :
xxxiv. Time Frame : 15 Minutes
xxxv. Major Treat : bullish
xxxvi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 24
Position : Long
Data Entry : FCPO FEB 2022
Technical :
xvi. Time Frame : 15 Minutes
xvii. Major Treat : bullish
xviii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

20
 Expert Opinion :-

TRADING PLAN CHART

Trading Plan 25
Position : Long
Data Entry : FCPO MAR 2022
Technical :
xxxvii. Time Frame : 15 Minutes
xxxviii. Major Treat : bullish
xxxix. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 26
Position : Long
Data Entry : FCPO MAR 2022
Technical :
xl. Time Frame : 15 Minutes
xli. Major Treat : bullish
xlii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 27
Position : Long
Data Entry : FCPO MAR 2022
Technical :
xix. Time Frame : 15 Minutes
xx. Major Treat : bullish
xxi. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

21
 Expert Opinion :-

TRADING PLAN CHART

Trading Plan 28
Position : Long
Data Entry : FCPO MAR 2022
Technical :
xliii. Time Frame : 15 Minutes
xliv. Major Treat : bullish
xlv. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 29
Position : Long
Data Entry : FCPO JAN 2022
Technical :
xlvi. Time Frame : 15 Minutes
xlvii. Major Treat : bullish
xlviii. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

Expert Opinion :-
Trading Plan 30
Position : Long
Data Entry : FCPO MAR 2022
Technical :
xxii. Time Frame : 15 Minutes
xxiii. Major Treat : bullish
xxiv. Indicators : Volume,
Stochastic RSI, RSI,
Moving Average (MA)
Fundamental analysis : I gain of
the profit because I draw the
support and the resistance line
very carefully and correctly.

22
Expert Opinion :-

REFERENCES

1. https://www.tradingview.com/chart/
2. https://www.bursamarketplace.com/mkt/mygames/game/10708
3. https://www.nst.com.my/opinion/columnists/2021/11/744659/better-planning-needed-
attract-millennial-talent-palm-oil-industry
4. https://www.theedgemarkets.com/article/fgv-passionate-about-changing-malaysian-
palm-oil-narrative-%E2%80%94-ceo

23
APPENDICES

24
25