FACULTY OF BUSINESS AND MANAGEMENT

BACHELOR OF BUSINESS ADMINISTRATION (HONS.) FINANCE (BA242)

FUTURES AND OPTIONS (FIN645)

FUTURES TRADING PLAN (FTP) REPORT

TRADING PERIOD : 24th APRIL 2024 – 16th JUNE 2024

INDIVIDUAL ASSIGNMENT
BY :
AHMAD ‘AQIL BIN ABDUL HALIM (2022856092)

PREPARED FOR :
DR. FLICIA RIMIN

SUBMISSION DATE :
23rd JUNE 2024
INDIVIDUAL TRADING DIARIES

I chose to trade in the Futures contracts for FCPO and FKLI throughout the duration of
the simulation, as their market price are quite volatile and both contracts are actively traded.
Both contracts have a very similar trends starting from the start of May 2024, but there was
clear difference on the trends as the trading progressed through May 2024 until June 2024.

One of the clear differences between the trends was the volatility of both commodities.
While both the FCPO and FKLI contracts were slowly on a rise in the beginning, there was a
sudden shift in the FCPO commodity where the price experienced a deep fall only on the 10th
day of May, while FKLI’s commodity continues to reach higher price and stayed on the same
price for the rest of the month until June 2024.

Due to the volatility in price, It was hard to have a general overview of the price changes
as the stocks update their price daily, and within every 15 minutes there are changes based on
the graph in Bursa Malaysia. Hence it was important in drawing support lines and resistance
lines to minimize risk of loss if possible. I mainly capitalized on the price trends and was able
to gain profit based on big trend changes ongoing within the week, as the price would be linear
where it will continue to rise when the trend is rising or fall when the trend is falling within the
time frame of a ‘week’.

In trading, although relying on technical analysis would be beneficial it does not

determine whether a new trader would quickly be successful, another important part in trading
is risk management. One of the challenges in this trading was in expecting whether the price
would fall or rise, an instance was when I bought 6 Short FCPO contract of July, August and
September 2024 as the previous trend was that after a steady rise in price, the next day there
would be a fall in price momentarily before they would rise higher again. I had incurred a loss
of RM2,500 on that day 20th of May.

Overall, 90 contracts are closed from May 2024 until June 2024. I had made a total net
profit of RM 67,650 during the trade which is an approximate profit of 1.353 return on
investment, meaning that for each RM1 transaction I gained RM2.353.
DAILY TRADING DIARIES

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
1 03.05.2024 FCPO MAY/2025 3,901.00 1 3,895.00 SHORT 150.00
2 03.05.2024 FKLI MAY/2024 1,585.50 1 1,586.00 LONG 25.00
3 03.05.2024 FKLI MAY/2024 1,588.00 1 1,594.00 SHORT - 300.00
4 03.05.2024 FKLI MAY/2024 1,591.00 1 1,594.00 LONG 150.00

At the start of the trading simulation within a time of 3 days, It was more of an
exploration in the price volatility of the futures commodities. I experimented with the contracts
hence took 1 short FCPO May/2025 contract, 2 long FKLI May/2024 contract and 1 short FKLI
May/2024 contract. The price trend for FCPO was bearish hence I gained a profit while it was
bullish for FKLI, hence I got a profit and loss as I bought both Long and Short contracts.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
5 07.05.2024 FKLI MAY/2024 1,599.00 1 1,610.00 LONG 550.00
6 07.05.2024 FCPO MAY/2024 3,950.00 1 3,955.00 LONG 125.00
7 07.05.2024 FKLI MAY/2024 1,611.00 1 1,610.00 LONG - 50.00

On this day, I gained profit in trading for both FCPO and FKLI commodities, although
I still experienced a loss in my 2nd consecutive contract purchase at the time for FKLI. This
incurred as I had bought it at the time of day where the price is high. I had expected the price
to reach higher, but It stayed hence a small loss.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
8 08.05.2024 FCPO MAY/2024 3,955.00 1 3,965.00 SHORT - 250.00
9 08.05.2024 FKLI MAY/2024 1,607.00 1 1,607.50 SHORT - 25.00
10 08.05.2024 FKLI MAY/2024 1,608.50 1 1,608.00 LONG - 25.00

This was a good experience, as I learned more about the general price changes on this
day and became a bit more acquitable to the daily and general market trends. This loss was due
to a wrong prediction in price change on opening of market.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
11 10.05.2024 FKLI MAY/2024 1,604.00 1 1,604.50 SHORT - 25.00
12 10.05.2024 FCPO MAY/2024 3,860.00 1 3,925.00 LONG 1,625.00
13 10.05.2024 FKLI MAY/2024 1,604.50 1 1,605.50 LONG 50.00

There was an indication of a bullish using technical indicators for FCPO hence I bought
long contracts for both FCPO and FKLI. But I tried to play it safe and bought a short contract
for FKLI in case the prices fell instead. I quickly closed the Short contract as I saw the price
market going up.
NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
14 13.05.2024 FKLI MAY/2024 1,608.00 1 1,609.50 LONG 75.00
15 13.05.2024 FKLI MAY/2024 1,610.00 1 1,611.50 LONG 75.00
16 13.05.2024 FKLI MAY/2024 1,610.00 1 1,611.50 LONG 75.00

The prices started to stagnant and only rose in small amounts, I correctly predicted the
increase in price and quickly closed the contract as the price remained unchanged.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
17 14.05.2024 FKLI MAY/2024 1,608.00 1 1,611.50 SHORT - 175.00
18 14.05.2024 FCPO JUN/2024 3,872.00 1 3,835.00 SHORT 925.00
19 14.05.2024 FCPO JUN/2024 3,872.00 1 3,835.00 SHORT 925.00
20 14.05.2024 FCPO MAY/2024 3,906.00 1 3,873.00 SHORT 825.00
21 14.05.2024 FKLI MAY/2024 1,611.50 1 1,615.00 LONG 175.00
22 14.05.2024 FCPO MAY/2024 3,873.00 1 3,800.00 SHORT 1,825.00
23 14.05.2024 FCPO JUN/2024 3,835.00 1 3,815.00 SHORT 500.00
24 14.05.2024 FCPO JUN/2024 3,835.00 1 3,815.00 SHORT 500.00
25 14.05.2024 FCPO JUN/2024 3,835.00 1 3,815.00 SHORT 500.00
26 14.05.2024 FKLI MAY/2024 1,608.50 1 1,608.50 LONG -
27 14.05.2024 FCPO JUN/2024 3,835.00 1 3,834.00 SHORT 25.00

On 9th of May 2024, Bernama news disclosed an article stating a decline in The Crude
Palm Oil (CPO) futures contracts. I bought multiple Short FCPO contracts ranging from May
and June Futures contracts. I bought 1 FKLI short contract in the early market opening, and
closed when the price was rising.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
28 15.05.2024 FCPO JUN/2024 3,875.00 1 3,834.00 SHORT 1,025.00
29 15.05.2024 FCPO JUN/2024 3,877.00 1 3,877.00 LONG -
30 15.05.2024 FCPO JUN/2024 3,869.00 1 3,834.00 SHORT 875.00

I continued to buy Short contracts for FCPO as the price was steadily decreasing.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
31 16.05.2024 FCPO JUN/2024 3,837.00 1 3,856.00 LONG 475.00
32 16.05.2024 FCPO JUN/2024 3,815.00 1 3,834.00 LONG 475.00
33 16.05.2024 FCPO JUN/2024 3,829.00 1 3,856.00 LONG 675.00
34 16.05.2024 FCPO JUL/2024 3,804.00 1 3,821.00 LONG 425.00
35 16.05.2024 FCPO JUL/2024 3,804.00 1 3,808.00 SHORT - 100.00
36 16.05.2024 FCPO JUL/2024 3,808.00 1 3,847.00 LONG 975.00
37 16.05.2024 FCPO JUL/2024 3,808.00 1 3,847.00 LONG 975.00
38 16.05.2024 FCPO JUL/2024 3,808.00 1 3,847.00 LONG 975.00

There was a slight change in the FCPO price, as they experienced a small increase in
price. According to Bernama newspaper, Due to the stronger soybean oil market during Asian
hours, the Bursa Malaysia Derivatives crude palm oil (CPO) futures contract recovered from
its losses from yesterday to close higher today.
NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
39 20.05.2024 FCPO JUL/2024 3,897.00 1 3,914.00 SHORT - 425.00
40 20.05.2024 FCPO JUL/2024 3,897.00 1 3,914.00 SHORT - 425.00
41 20.05.2024 FCPO AUG/2024 3,903.00 1 3,918.00 SHORT - 375.00
42 20.05.2024 FCPO AUG/2024 3,903.00 1 3,918.00 SHORT - 375.00
43 20.05.2024 FCPO SEPT/2024 3,907.00 1 3,925.00 SHORT - 450.00
44 20.05.2024 FCPO SEPT/2024 3,907.00 1 3,925.00 SHORT - 450.00

The price continued to rise in the market, I wrongly expected the price to fall as the
news stated the overall palm oil products shipped was still on a decline.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
45 21.05.2024 FCPO JUL/2024 3,914.00 1 3,961.00 LONG 1,175.00
46 21.05.2024 FCPO AUG/2024 3,918.00 1 3,964.00 LONG 1,150.00
47 21.05.2024 FCPO JUL/2024 3,914.00 1 3,961.00 LONG 1,175.00
48 21.05.2024 FCPO JUL/2024 3,914.00 1 3,961.00 LONG 1,175.00
49 21.05.2024 FCPO JUL/2024 3,914.00 1 3,961.00 LONG 1,175.00
50 21.05.2024 FCPO JUL/2024 3,914.00 1 3,961.00 LONG 1,175.00
51 21.05.2024 FCPO AUG/2024 3,918.00 1 3,964.00 LONG 1,150.00
52 21.05.2024 FCPO AUG/2024 3,918.00 1 3,964.00 LONG 1,150.00
53 21.05.2024 FCPO AUG/2024 3,918.00 1 3,964.00 LONG 1,150.00
54 21.05.2024 FCPO JUN/2024 3,897.00 1 3,937.00 LONG 1,000.00
55 21.05.2024 FCPO AUG/2024 3,918.00 1 3,964.00 LONG 1,150.00
56 21.05.2024 FCPO JUN/2024 3,897.00 1 3,937.00 LONG 1,000.00
57 21.05.2024 FCPO JUN/2024 3,897.00 1 3,937.00 LONG 1,000.00
58 21.05.2024 FCPO JUN/2024 3,897.00 1 3,897.00 SHORT -
59 21.05.2024 FCPO JUN/2024 3,897.00 1 3,937.00 LONG 1,000.00
60 21.05.2024 FCPO JUL/2024 3,914.00 1 3,961.00 LONG 1,175.00
61 21.05.2024 FCPO JUL/2024 3,961.00 1 3,925.00 SHORT 900.00
62 21.05.2024 FCPO JUL/2024 3,961.00 1 3,925.00 SHORT 900.00

Because of the growing price of soybean oil, CPO futures close higher, said Bernama
news on 20th of May 2024. Hence using these and analyzing the graph for FCPO, I bought 19
contracts, 3 short, 16 long ones.
NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
63 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
64 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
65 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
66 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
67 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
68 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
69 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
70 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
71 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
72 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
73 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
74 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
75 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
76 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00
77 23.05.2024 FCPO MAY/2027 3,959.00 1 3,907.00 SHORT 1,300.00

The trend was indicative of a bearish, hence I readied and bought 15 short contracts.
NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
78 24.05.2024 FCPO MAY/2027 3,907.00 1 3,948.00 LONG 1,025.00
79 24.05.2024 FCPO MAY/2027 3,907.00 1 3,948.00 LONG 1,025.00
80 24.05.2024 FCPO MAC/2027 3,907.00 1 3,948.00 LONG 1,025.00
81 24.05.2024 FCPO MAC/2027 3,907.00 1 3,948.00 LONG 1,025.00
82 24.05.2024 FCPO MAC/2027 3,907.00 1 3,948.00 LONG 1,025.00

The news was praising the CPO for having ended higher on 23rd May, Thursday.

NO. DATE SECURITY OPEN PRICE (RM) VOLUME CLOSING PRICE (RM) ACTION GROSS P/L (RM)
83 28.05.2024 FCPO MAY/2025 3,986.00 1 4,036.00 LONG 1,700.00
84 28.05.2024 FCPO MAY/2025 3,986.00 1 4,036.00 LONG 1,700.00
85 28.05.2024 FCPO MAY/2025 3,986.00 1 3,986.00 SHORT -
86 28.05.2024 FCPO MAY/2025 3,986.00 1 4,036.00 LONG 1,700.00
87 28.05.2024 FCPO MAY/2025 3,986.00 1 4,036.00 LONG 1,700.00
88 28.05.2024 FCPO MAY/2025 3,986.00 1 4,036.00 LONG 1,700.00
89 28.05.2024 FCPO MAY/2025 3,986.00 1 4,036.00 LONG 1,700.00
90 28.05.2024 FCPO MAY/2025 3,986.00 1 4,036.00 LONG 1,700.00

FCPO contract continued to experience a high rise in prices, for the last few weeks, and
there was no indication of it falling down, hence I bought 8 contracts with 7 Long and 1 Short.
I initially bought 2 longs and 1 short, and ended up changing my mind and adding the long
contracts and closing the short one.

In conclusion, I had learned through this simulation trading on the price volatility on
the futures contracts of FCPO and FKLI, albeit, a part of their true nature.
APPENDICES
Items traded
FCPO & FKLI Trend

FCPO

FKLI