Rotman Market Simulation Challenge x CMU 2024
Getting Started Resources
Support Documents
RIT Market Simulator
NOTE: RIT must be downloaded on a Windows-based machine. Mac users can install a virtual lab on their computer for free. Click on the Installation Instructions link above to learn how.
NOTE: We strongly recommend using the Client-Based Algorithm instead of the RIT DMA Algorithm during the competition. This algorithm has proven to be more stable, reliable, and easier to implement, allowing you to focus on strategy rather than troubleshooting technical issues.
The Client-Based Algorithm has shown better stability across various scenarios, reducing the risk of disruptions. It’s simpler to set up and use, ensuring fewer complications and smoother operation during the competition.
Also, It’s crucial to start with the base algorithm provided, as it forms the foundation for all enhancements and customizations you may wish to implement.
If you need guidance on implementing the Client Based Algorithm, please refer to the Algorithm Guides available in the “Getting Started” section of the competition resources. These guides provide step-by-step instructions and troubleshooting tips to help you set up the algorithm correctly.
Should you encounter issues that cannot be resolved through the provided resources, feel free to reach out to our team at financelab@rotman.utoronto.ca and we will be happy to assist you further.
We highly encourage you to follow this recommendation for a seamless competition experience, and we wish you the best of luck as you finalize your preparations!
Case Package
Liability Trading Case
The Liability Trading Case challenges participants to test their critical thinking and analytical skills in an environment where they must evaluate the liquidity risk associated with various tender offers. Throughout the case, participants will encounter multiple tender offers, requiring quick decisions on whether to accept and execute, or reject each offer based on their profitability. Profits can be achieved by exploiting price differentials between market prices and private tender offers. Once a tender is accepted, participants should focus on efficiently closing out their large positions to maximize returns and minimize liquidity and market risks.
Algorithmic Market Making Case
The Algorithmic Market Making Case is designed to introduce participants to algorithmic strategies for market making, where the objective is to earn the bid-ask spread while providing liquidity for an individual stock. Participants will need to use their programming skills to develop algorithms with the RIT API to automate trading strategies and respond to changing market conditions. Throughout the case, these algorithms will submit orders to profit by earning the bid-ask spread and pursuing rebates through competitive limit orders that get filled. Given the high-frequency nature of the case, participants are encouraged to develop algorithms that can quickly adapt to rapid changes in market dynamics using their preferred programming languages.
Access Credentials
When registration closes, we will send you an email including your unique RIT Trader IDs & Password for the competition.
Your RIT Trader IDs are like tickets to a movie. Your team is given two tickets, you may sit where you like.
For Example:
- Seat (Trader ID) #1: ABCD-1
- Seat (Trader ID) #2: ABCD-2
- Team Password: apples
RIT Credentials give your team access to:
- Practice Server
- Practice Sessions
- Competition Day
Roles
- Some cases require team members to play specific roles. Teams can decide which team members will play which roles.
- For cases that have roles, only specific Trader IDs will be in operation, and they will be tied to a specific role.
- To use our movie analogy, for each case with roles, only certain seats will be available.
- Teams can decide which team members have a seat, and which team members watch from the aisle.
Liability Trading Case (All team members participate in this case, and all have the same role.)
- Role of Trader #1
- Role of Trader #2
- Role of Trader #3
Liability Trading Case example seat and role allocation
- ABCD-1: Role of Trader #1
- ABCD-2: Role of Trader #2
- ABCD-3: Role of Trader #3
Algorithmic Trading Case (Any one member may represent the team in the single role in this Case.)
- Role of Trader #1
Competition Day
Schedule
November 2nd, 2024
- 09:00 am - 09:30 am | Registration, Light Breakfast
- 09:30 am - 10:15 am | Welcome, Briefing Session
- 10:30 am - 12:00 pm | Case Study #1
- 12:00 pm - 01:00 pm | Lunch
- 01:00 pm - 02:30 pm | Case Study #2
- 02:30 pm - 03:30 pm | Networking Session
- 03:30 pm - 04:00 pm | Award Ceremony
Carnegie Mellon University
5000 Forbes Ave,
Pittsburgh, PA 15213,
United States
Competition Day
Instructions
- Use your RIT credentials to connect to the server and port above (Trader ID and Password).
- Once you are connected, messages on your RIT will keep you informed throughout the session about the next steps.
- We will briefly explain the platform and run a few practice rounds of the case.
- We will run the competition rounds, save the results, aggregate them and share during the Awards Ceremony.
- The server port is only active during the competition day.
Server Details
- Server host name: flserver.rotman.utoronto.ca
- Server port: 16600
Practice Server
- The Practice Server allows you to explore RIT prior to the Competition Day.
- The Practice Server will be disabled on Competition Day. Some cases require team members to play specific roles. Teams can decide which team members will play which roles.
- To log into any Practice Server port, please use the access credentials that were provided to you via email.
- The case structure on practice servers and during the competition will be the same, but market dynamics may be different depending on the participants’ trading behaviour. Price paths will also be different during the competition. In addition, market parameters during the competition may be adjusted to better account for over 100 live traders.
- Trading Cases will have new, randomized sets of security paths each time they are run on the practice server.
Practice Server Details
Practice Servers will be enabled from October 21st, 2024 by 12:00 pm until the day of the competition.
Liability Trading Case practice server details
- Server host name: flserver.rotman.utoronto.ca
- Server port: 16510
Algorithmic Market Making Case practice server details
- Server host name: flserver.rotman.utoronto.ca
- Server port: 16520
Practice Session
Please join us for a mandatory virtual practice session on Zoom. The meeting link will be emailed to you by your organization.
- October 30, 2024 at 5:00 pm - 6:00 pm (EST)