SCU Stock Market Simulation Model
Contents
1. If you wish to end it early click the End Game button in the Administrator Option box on the index page The trading screen will immediately be replaced by the results of the game with traders 29 4 2 4 2 1 1 2 3 sorted by their net worth and the winning trader displayed in red at the top of the list Traders First Time Setup Navigate to the main page and enter a username and password of your choice Click Create New Account Once you have created your account you can log in with the username and password you created anytime you return to the site to play the game 4 2 2 l Playing the Game Login with the username and password you created 2 Click the Trading Page link in the Login box 3 4 To submit a buy or sell limit order Your cash and stock holdings are shown in the Portfolio box a Findthe Order box on the trading screen b Select the security you want to buy or sell from the dropdown menu c Enter the price you want to sell at and the number of shares you want to sell gt Click either the Buy or Sell button e Your order will appear shortly in your Pending Transactions box Note that it may not appear if it is immediately completed f When all or a portion of your order is completed the completed portion will appear in the Completed Transactions box 5 To gain information about the true price of a security2. eee opens eio QUARE reU Ep dU DU TC 7 23b Browser Compatibility oet D e EC ADR 7 AIN PHP 7 2 6 Database 5 8 DD Ew KD mS 11 2 8 TESNE me M Y 12 Sectiom3 Implementattom bae ore ere dettes EE ENTE 14 User Interface PEE 14 3 2 Technical Setup Prerequisites ARE RU ue e E Axe 27 Section User s Masala Sed cundo ERES Ere And Penso eae CEDERE EE ERN LAS 28 4 1 PGMS ALOE i 28 2 2 AN Traders tede baud 30 sections Societal Issues cre ERE 31 Section Concluston eee ER pu ah ee EE XN EE IA MES 32 codo nive v tod E ONE oT Su dr 33 EET 36 List of Figures Figure 2 1 High Level Technology 5 Figure 2 2 Entity Relationship Diagram e e eR eee Ni eee IE 9 Figure 2 3 Schema Instance 5 ev est sacs eee pei e qeu anuo NER Een ans as Kus codecs tenes 10 Figure 2 4 coeur rex EI tenia eR Eve x ERE hee VIA ua e ea ELEC Cad 11
3. a Select the bid ask graph corresponding to the security by selection it from the dropdown menu in the Market Information box b Read recent news releases relating to the security in the News box 4 2 3 Specialists Specialists should follow all the normal trading guidelines in Section 4 2 2 in addition to the following 30 1 To view the limit order book for your security a Click the Click Here to View Limit Order Book link at the bottom left of your trading screen b A popup box will appear that shows all pending transactions for all the securities that you are the specialist for c Click the close link to close this box and resume trading 4 2 4 End of Game At the end of the game the trading screen will immediately be replaced by the results of the game with traders sorted by their net worth and the winning trader displayed in red at the top of the list Section 5 Societal Issues The societal concerns of the SCU Stock Market Simulation Model are negligible The simulation is more environmentally friendly than the NYSE in the sense that there is no need for a physical stock exchange the orders and transactions are recorded electronically and trading can be done from any computer with Internet access thus eliminating the need for travel to a specific location for trading Another concern for appraisal was that students might become overly confident in their ability to manage stock marke
4. The server side language can then send that information back to the Javascript which then renders it wherever it chooses on the web page that the user sees is a small piece of their web site change such as their list of pending orders The rest of the page stays completely static We used AJAX to update all of the information on the trading interface the trader s portfolio the trader s pending orders the trader s completed orders the bid ask graph of each security and the trader s list of news releases Since AJAX allows multiple functions to be called concurrently we could simulate a real time environment by having our Javascript update all of these pieces of the trading screen every few seconds 2 8 Testing Several methods of testing were used throughout the development process of the trading game First we broke down the processing that was required of the PHP into small logical pieces then wrote a PHP function to perform each of these tasks Some of these were so small and or trivial that it was easy to hand test the function or simply observe its behavior to ensure that it was performing correctly Other functions such as the one responsible for realizing transactions were more complex and required an automated testing framework For this we used a utility called PHPUnit This utility allows the programmer to write individual tests for a function then group numerous tests into a test suite and finally group sev
5. 87 4 Jorge 1000 00 32666 87 33666 87 5 Dave 1000 00 32666 87 33666 87 6 Albert 1000 00 32666 87 33666 87 7 Allen 1000 00 32666 87 33666 87 8 Bob 1000 00 32666 87 33666 87 9 Chris 1000 00 32666 87 33666 87 10 Steve 1000 00 32666 87 33666 87 11 admin 1490 00 31993 79 33483 79 Done o 26 32 Technical Setup Prerequisites In order to setup the Stock Market Simulation Model the administrator must have a web server running the following software 1 Apache with support for 5 2 5 3 MySQL In addition PHP5 must have the following libraries installed 1 MDB2 usually installed with the following commands pear upgrade mdb2 pear install MDB2 Driver mysql 2 APC Cache usually installed with the following command pecl install apc The following lines should then be added to the PHP5 configuration php ini file apc enabled 1 apc shm segments 1 apc shm size 128 apc optimization 0 apc num files hint 1000 apc ttl 0 apc gc ttl 3600 apc cache by default On apc slam defense 0 apc file update protection 2 apc enable cli 0 apc stat 1l Then the administrator should install the database using the script in the db folder of the trading game cd path to game root dir db mysql u root source seniordesign sql Next the webapp directory of the trading game should be copied to the web server s public directory Sites on
6. OSX 27 Finally the config xml file in the webapp directory should be edited with the appropriate parameters for the particular web server An example configuration is shown below config dbHost localhost dbHost lt dbName gt seniordesign lt dbName gt lt dbUserName gt sd lt dbUserName gt lt dbPassword gt pwd lt dbPassword gt lt phpPath gt usr local php5 bin php lt phpPath gt lt config gt Section 4 User s Manual 4 1 Administrator 4 1 1 First Time Setup 1 Follow the directions above to install the Stock Market Simulation Model on your web server 2 Navigate your browser to the index page 3 Create a user with the name admin and a password of your choosing This user will be the only administrator for the game 4 You now have an extra box on the main page called Administrator Options 4 1 2 Configure Game Parameters The following steps must be followed before each run of the game 1 Login as admin if not already 2 Click the Configure Game Parameters link in the Administrator Options box on the index page 3 Decide on the number of securities you want to have in the game and click these securities 4 Now specify the various game parameters you would like each security to have Default values are provided but you are free to change any of them that you wish 5 Set the start time end time and traders starting cash 28 4 1 3 Click Sub
7. and has a special link at the bottom of his screen because of this e XT a a http concerto engr scu edu seniordesign SeniorDesign webapp home php gt amp ex 4 Stumble F Sendto Channek 207 fe Gh wh Favorites Friends Tools Welcome Clayton sign out Go to Home Hide This Menu Bar Selectone v Price Shares Set Security Shares Price Type Cancel csco 10 52 00 buy Cancel csco 100 100 00 sell Cancel csco 40 50 00 buy Cancel Security Shares Price Type Time csco 10 49 00 buy 02 58 05 You are the specialist for CSCO Click Here To View Limit Order Book s Price oo 6 74 6 55 8 33 224 Iz Bid Ask Spread for CISCO Tine 92 58 42 News Time Analysts expect AAPL to be worth at least 8 73 02 58 27 Analysts expect CSCO to be worth at least 22 43 02 57 24 Analysts expect AAPL be worth at most 163 45 02 57 24 Analysts expect AAPL to be worth at least 42 56 02 56 24 24 3 1 8 Trading Screen Specialist Window Since the trader who is currently logged in is a specialist for Cisco he can view Cisco s limit order book This book shows all the pending transactions for Cisco A screenshot of this is shown below 2 http concerto engr scu edu seniordesign SeniorDesign webap
8. her to configure various game parameters It also has a button which allows the administrator to instantly end the currently running game Market Trading Game Developed by Joe Mastroieni amp Clayton Hoefer Mozilla Firefox EISE File Edit View History Bookmarks Tools Help e T 2 e QI ft http concerto engr scu edu seniordesign SeniorDesign webapp index php gt Google 49 Bank of America SC Weather Google SCU 77 Thefacebook M MapQuest 9 Originate Mail G UsedGirlfriend phpMyAdmin SeniorDesign G CSRWare 4 stumble D F Sendto Chane 1 O fm Gh Al wh Favorites Friends Tools SCU STOCK MARKET GAME HOEFER amp J MASTROIEN You are logged in as admin Welcome to the SCU Stock Market Trading Game designed by Clayton Trading Page Hoefer and Joe Mastroieni as a senior design project in 2007 Special Sign out thanks goes to Darren Atkinson for advising us on this project This game gives a real time simulation of NYSE trading Features include Trading in up to 15 securities Individualized news for each trader Stock price generation Real time bid ask price graph Game variables configurable by administrator Ranks all traders at end of game Configure Game Parameters Assign Security Specialists More Administrator Options end game Game is currently in progress Note This page
9. of America SC Weather G Google SCU 7 Thefacebook MapQuest 9 Originate Mail UsedGirlfriend phpMyAdmin G SeniorDesign CSRWare Stumble Sendto 2 Channek B O Gh K Al Favorites Friends Tools SCU STOCK MARKET GAME HOEFER amp J MASTROIENI Game parameters have been set successfully x S Ro S a Mie dollars number percent percent seconds percent percent APPLE AAPL 50 250 5 2 60 50 5 CISCO CSCO 50 250 5 2 60 50 5 DELL INC DELL 50 250 5 2 60 50 5 EBAY EBAY 50 250 5 2 60 50 5 GOOGLE GOOG 50 250 5 2 60 50 5 Game Start 2007 06 05 14 43 13 Game End 2007 06 05 15 43 13 Market Orders Allowed NO Starting Cash per Trader 1000 Home Play Game Confiqure Game Parameters Assign Security Specialists More Administrator Options 20 3 1 5 Administrator Options 2 Assign Security Specialists As mentioned above a security specialist is allowed special privileges He or she gets to see all of the pending trades for his or her security The administrator has to assign security specialists from the list of all registered traders Shown below is the page which allows the administrator to do this and the subsequent confirmation page which appears once the choices have been submitted CKO AL kU File Edit View History Bookmarks Tools Help KE T Y e fit a http concerto engr scu edu senio
10. of the main page once a typical user student has logged in The user now has the option to play the game http concerto engr scu edu seniordesign SeniorDesign webapp index php M gt Gl Google amp SC Weather Google SCU 77 Thefacebook M MapQuest 9 Originate Mail G UsedGirlfriend phpMyAdmin G SeniorDesign G CSRWare Stumble Ilikeit Chame B O G wp Favorites Z Friends Tools HDEFER amp J MASTROIEN You are logged in as Clayton Welcome to the SCU Stock Market Trading Game designed by Clayton Trading Page Hoefer and Joe Mastroieni as a senior design project in 2007 Special Sign out thanks goes to Darren Atkinson for advising us on this project This game gives a real time simulation of NYSE trading Features include Trading in up to 15 securities Individualized news for each trader Stock price generation Real time bid ask price graph Game variables configurable by administrator Ranks all traders at end of game Game is currently in progress Start Tue 05 Jun 2007 14 34 24 0700 End Tue 05 Jun 2007 15 34 24 0700 Note This page is best viewed using Firefox 2 0 or IE 7 16 3 1 3 Main Page Logged In as Administrator The following shows the main page when the user logs in as the administrator The user now has a special box containing extra options which allow him or
11. upgradeable Possible upgrades include the addition of market orders and option and bond trading The software will come with an installer The game will be moderately secure This means an experienced hacker could probably break it but a general computer user would be unable to tamper with the game Trading Specific Requirements Traders can submit limit orders to buy or sell securities Traders can view their account balance of both securities and cash Traders can view their pending orders Traders can cancel their pending orders Traders can view the bid ask spread for a given security Traders can view a price graph for a given security this is the graph of transactions involving the given security that have occurred over the course of the game Traders designated as specialists can view the limit order book for their security this includes all of the orders that have been placed for that security The game will realize orders automatically when matches are found Traders accounts will be updated automatically when transactions are realized The game administrator can set the start and end time of the game The game will simulate a trading day the market will only be open for trading during fixed time periods e The game will set the real price for each security using the stock value tree algorithm provided by Professor Das e The game will create news events and release this news to a subset of traders e The administra
12. 3 Schema Instance 10 27 AJAX Asynchronous Javascript and XML AJAX is grouping of technologies commonly used to support dynamic functionality on web pages It allows a web site to mimic behavior that in the past could only be accomplished on a desktop application The following diagram shows how the flow of data in an AJAX based web page compares to a more traditional web site classic web application model synchronous user activity user activity user activity g 5 g 5 S 8 S 8 S 5 5 5 c c E 5 5 8 5 5 S S o o 2 D 3 D system processing system processing Ajax web application model asynchronous user activity dient side processing uoissiulsueJ data transmission uoissiwsuey data transmission 55 5 data transmission data transmission uoissiuusue4 server side server side server side server side processing processing processing processing Figure 2 4 Ajax Diagram AJAX allows a client side scripting language Javascript in our case to make calls to functions written in a server side scripting language PHP in our case Javascript also has the capability 11 to change individual pieces of a webpage without having to refresh the entire page With AJAX Javascript can ask the server side script to perform some processing such as querying the database for the latest list of pending orders
13. Bookmarks Tools Help 2 z a M e KI ft http concerto engr scu edu seniordesign SeniorDesign webapp admin_page php gt Google amp 4b Bank of America SC Weather G Google SCU 7 Thefacebook MapQuest 9 Originate Mail UsedGirlfriend phpMyAdmin G SeniorDesign CSRWare 4 Stumble F Sendto 2 Channek B O Gh K Al Favorites Friends Tools Configure game parameters below Traders News Get Info News Error Trader s Growth Std Dev Security Symbol Price of Shares Rate Growth Interval dollars number percent percent seconds percent percent APPLE 50 250 5 2 6 50 5 1 cisco csco 50 250 5 2 e 50 5 DELLINC DELL 50 250 5 2 60 50 5 EBav 50 250 5 2 6 50 5 Goocle 6006 50 250 5 2 60 50 5 Start Time 2007 06 05 14 43 13 End Time 20070605154313 Market Orders Allowed Trader s Starting Cash 1000 Submit Game Parameters Home Play Game Configure Game Parameters Assign Security Specialists More Administrator Options 19 Cini a File Edit View History Bookmarks Tools Help 2 a e KI ft http concerto engr scu edu seniordesign SeniorDesign webapp processAdmin php gt Google amp 4b Bank
14. Figure 2 5 Stock Price Generation 1 of 2 i extis eee boo Us REIN X EN ae ceive RU Rp VE PRESE 34 Figure 2 6 Stock Price Gereration 2 OE 2 ries eee olor bind tiw eben ee d aded 35 Section 1 Introduction 1 1 Objectives Purpose and Goals The objective of our senior design project was to create a web based stock market simulation model for use by Professor Sanjiv Das in the Santa Clara University Finance department This simulation model will mimic the NYSE environment by producing realistic real time information and feedback to traders At the same time we can benefit from this project by learning new technologies We will also get the experience of creating and delivering a fully functional product for our customer the Finance Department and real world users finance students The main purpose of creating a stock market simulation model is for stock market analysis This can be beneficial for finance students who will get the chance to study market trading without risk It can also benefit those teachers who wish to study stock market behavior by giving them the opportunity to manage a controlled environment This is possible because the system accepts various administrative parameters which are fully adjustable Our main goal is to provide a fully functional system that meets all the requirements set forward by our customer These requirements include real time information and updates a real time stock p
15. Santa Clara University DEPARTMENT of COMPUTER ENGINEERING Date June 14 2007 I HEREBY RECOMMEND THAT THE THESIS PREPARED UNDER MY SUPERVISION BY Clayton Hoefer and Joseph Mastroieni ENTITLED SCU Stock Market Simulation Model BE ACCEPTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF BACHELOR OF SCIENCE IN COMPUTER ENGINEERING THESIS ADVISOR DEPARTMENTCHAIR SCU STOCK MARKET SIMULATION MODEL by Clayton Hoefer and Joseph Mastroieni SENIOR DESIGN PROJECT REPORT Submitted in partial fulfillment of the requirements for the degree of Bachelor of Science in Computer Engineering School of Engineering Santa Clara University Santa Clara California June 14 2007 SCU Stock Market Simulation Model for Classroom Analysis Clayton Hoefer and Joseph Mastroieni Department of Computer Engineering Santa Clara University 2007 ABSTRACT Analyzing stock market behavior and learning stock trading techniques can be valuable assets The financial cost and risk attributed to trading stocks on the stock market often makes this impossible for college students However a simulated stock market model would generate the same result without financial risk In the Santa Clara University SCU Stock Market Simulation Model we created a real time trading environment that would imitate the New York Stock Exchange NYSE model This project is designed for use in a classroom setting enabling the professor to manip
16. at will also serve you well in the stock market the ability to piece together information on a stock to determine its value and then act accordingly Knowing whether to buy or sell a security is the key to making money on stocks and the only way to gain this knowledge is through utilizing the information available 1 2 1 The Security Specialist Certain traders called specialists are historically hired to make transactions by matching trades on the floor of the New York Stock Exchange As specialists these traders are given more information than other traders in order to do their job This leads to a situation where specific traders possess inside information all the prices at which other traders are willing to trade the stock Whether specialists can effectively use this information to make more intelligent decisions in the simulation is a factor of their analytical skill Regarding the simulation the administrator can choose up to one specialist for each stock Game behavior will remain the same with or without specialists in the game 1 3 Requirements The Stock Market Simulation Model must meet the following requirements Many of these requirements have been set by our customer Professor Das 1 3 1 General Requirements The trading game will be Web based The trading interface will be aesthetically pleasing and easy to use The trading interface will be fast and responsive to user input The software will be designed to be
17. ck Market Simulation model neared completion it was important to test how the game would respond under the strain of 20 to 30 users trading simultaneously While it would have been ideal to implement an automated stress test framework to measure performance the limited scope of this project did not allow time for this Instead we simply used four computers with five to ten browser windows opened on each all logged in as a different user on the trading game This was sufficient to show us bottlenecks in our system most of which were related to PHP Apache and MySQL configurations not allowing enough connections We were able to modify these configurations in order to better optimize the performance of the trading game 13 Section 3 Implementation 3 1 User Interface The following is a look at the Stock Market Simulation Model s user interface It includes screenshots of all of the screens a typical user student would see as well as the additional screens an administrator professor would use to configure the game parameters 14 3 114 Main Page This is main or splash page of the trading game It is the first screen that all users see when navigating to the game web site with their browsers From there users can create a user name and password or log in to the game if they have already done so The main page also has a box which tells the user that status of the most recently played game which might still be in pr
18. customer and stress testing with 20 30 users Week 15 Build MAC OS X installer Weeks 16 18 Make any final changes based on customer requests and stress test results Retest as necessary Weeks 17 20 2 2 Phases of Development Phase One The first phase will contain all of the necessary elements required in the bare bones operational system The game will have a fully functioning database limit orders trading in a single security no graph and no news releases Phase Two The game will be enhanced by adding the following trading in multiple securities graph of each security and news releases The GUI will also be enhanced with AJAX features in this phase 2 3 Graphical Layout We used a combination of Extensible HyperText Markup Language XHTML and Cascading Style Sheets CSS to implement our user interface These two technologies are commonly used together to implement professional web pages because of the convenient separation of content and layout declarations that they provide An XHTML file contains only the content of a web site along with some simple containers for that content The CSS then tells the web browser exactly how to render those containers This allows the programmer to completely change the look and feel of a web page simply by changing the CSS file associated with it Using XHTML and CSS allowed one person in our group to work on the content of our user interface while the second person separately developed
19. database schema to help with the layout of our relational database We also built a HTML mock up to visualize the eventual page layout Once we had completed this analysis the choice of technologies was fairly simple We decided to build our user interface using XHTML and CSS which allow complete separation of content and layout declarations making it easy for us to change the design of the web interface on the fly without affecting the content We chose Javascript as our client side scripting language because it is used as a part of a technology called AJAX which we planned to use to implement the dynamic functionality we wanted in our user interface After evaluating a number of server side scripting languages we chose PHP for its dynamic capability and for its easy interface with relational databases namely MySQL PHP is also open source well documented and freely accessible We picked MySQL for our relational database MySQL is open source and is fully supported in PHP Finally Apache was chosen as our web server it is another highly popular open source program and also comes installed on Mac OS X our customer s target platform The following is a high level diagram showing how each of above mentioned technologies fits together User Interaction Server Layer Database Layer Layer Built with PHP Implemented with Users interact with MySQL this layer Consists of XHTML CSS and Javascript Communicates wit
20. ding model will depend on an underlying stochastic process followed by the stock price This may be represented in discrete time as a tree that enumerates all the possible scenarios of stock prices It is in fact easier to represent this without a tree especially from the view point of the software engineer The subroutine required would comprise 2 basic elements 1 Generate the next stock price for the subsequent epoch on the tree 2 Generate information about this stock price to be disseminated to the traders We present some notation to represent the above We assume that the game will be played over a trading horizon T specified in minutes We also specify the number of news releases we wish to have during the game denoted n Hence the news release interval is specified as h T n We index the time periods by variable t such that t 1 2 We define the initial stock price on the tree Sp The game administrator will specify also the growth rate of the stock and the standard deviation of the growth rate c as expected over the life of the game For example we may set 0 10 i e 1096 and 0 30 i e 30 Finally we specify a the fraction of traders that will receive an information signal each period denoted m and b the information error 7 expressed as a Figure 2 5 Stock Price Generation 1 of 2 34 standard deviation For example the fraction of traders may be m 0 55 i e 55 and the i
21. eral test suites together into a complete test run PHPUnit also has a nicely formatted web based output that makes it easy to see if tests are passing or failing The following figure is an example test run output in which you can see that several tests failed The tool tells us what the expected result was and what the actual result was allowing us to easily find bugs in our code 12 PHP Unit Results File Edit View History Bookmarks Tools Help e i IE http localhost xampp SeniorDesign webapp test runt Google IS Bank of America SC Weather Google SCU Thefacebook M MapQuest 9 Originate Mail UsedGirlfriend QU Stumble Sy Sendto Channek A gt mj EL wp Favorites aa Friends Tools Tests Test Checkutilities test CheckPendingUtility Pass Test Checkutilities test CheckCompletedUtility Pass Test ListLimitOrderBook Function test nonSpecialist Pass Test SubmitBuySellSecurity test lorderSubmit Pass Test SubmitBuySellSecurity test 1000rdersSubmit Pass Test UpdateCashFunction test TraderCashValue Summary 6 tests run 2 failures Failure Details 1 test CheckCompletedUtility Pass Expect 1 completed and 1 pending not pending 2 and completed 0 2 test TraderCashValue 9 Cash is not 250 If you ve just set game parameters or if you ve reloaded this page numerous times this may be normal behavior Finally as the Sto
22. h Server Layer via CGI POST and GET requests and AJAX HTTP requests Intermediary between User Interaction Layer and Database Layer Will respond to CGI and HTTP requests performing calculations and querying Database Layer as necessary Figure 2 1 High Level Technology Diagram Storage of persistent game data Responds to SQL queries from Server Layer 22 Development Timeline The following is a timeline which lays out the high level tasks involved in building the system and a proposed completion date for each Note that Weeks are in reference to the start of winter quarter 2007 Description of Task Timeframe Phase One Setup file server and SVN repository to allow concurrent development of project from remote locations December 2006 Design and implement database in MySQL using the PHP MyAdmin interface Weeks 1 2 Build GUI with XHTML and CSS based on existing HTML mockup Weeks 2 3 Add JavaScript client side input validation to HTML forms in GUI Week 4 Implement Phase One server side functionality with PHP Weeks 5 7 Meet with customer to discuss initial operational system Week 8 Phase Two Enhance PHP functionality and add AJAX features such as page refresh to GUI Weeks 8 12 Create automated test harness to test PHP functionality and write tests Weeks 12 13 Modify code as needed based on test results Weeks 13 14 Perform acceptance testing with
23. is best viewed using Firefox 2 0 or IE 7 Start Tue 05 Jun 2007 14 34 24 0700 End Tue 05 Jun 2007 15 34 24 0700 17 3 14 Administrator Options 1 Configure Game Parameters The following screenshot shows the first administrative page which allows the administrator to configure the game parameters This page has three parts first the administrator has to choose the number of securities that he or she wishes to have in the game Next the administrator sets the various game parameters associated with each security Finally a confirmation page is displayed showing the submitted game parameters Set Game Parameters Mozilla Firefox File Edit View History Bookmarks Tools Help gt e QI fit http concerto engr scu edu seniordesign SeniorDesign webapp admin_page php gt Google Bank of America SC Weather Google SCU 77 Thefacebook MapQuest 3 Originate Mail UsedGirlfriend phpMyAdmin SeniorDesign G CSRWare 4 Stumble dy llikeit Z Sendto Chane A O g K y Favorites Friends Tools s STOCK MARKET GAME HDEFER amp J MASTROIENI Set the number of securities here Create these securities Home Play Game Configure Game Parameters Assign Security Specialists More Administrator Options 18 File Edit View History
24. ist 7 lastTransaction priceVariable GameVariables marketOrders Figure 2 2 Entity Relationship Diagram 2 6 2 Schema Instance The following tables are the representation of a particular instance of the schema defined by the E R diagram above This schema instance should suggest the proper contents of each attribute as well as show the relationship between tables Traders name cash johnson 15000 tremain 10000 Portfolios foreign traderName secName shares tremain Apple 500 johnson Linux 750 tremain Microsoft 250 PendingOrders orderNo trader secName timePlaced marketOrder lype price shares 1234 tremain Apple 5 10 12 No Buy 15 75 20 1235 johnson Linux 5 12 34 Sell 17 50 CompletedOrders orderNo secName timeCompleted shares salePrice orderType trader 1232 Apple 5 05 00 500 20 Buy tremain 1233 Microsoft 5 00 04 250 30 Buy tremain 1231 Apple 5 05 00 500 20 Sell johnson 1230 Microsoft 5 00 04 250 30 Sell johnson Securities secName symbol specialist priceVariable lastTransaction askPrice bidPrice Apple APPL tremain 5 20 15 75 Microsoft MSFT johnson 3 30 Linux LNUX johnson 10 _ 17 GameVariables startTime endTime newsPercentage newslnterval marketOrders 5 00 00 6 00 00 10 25 Yes Figure 2
25. mit Game Parameters The game is now started Review the parameters If any of them are incorrect restart the game by starting over at Step 1 in this section Assign Security Specialists The following steps can be followed before each run of the game if not followed no specialist s will be assigned for that game 1 2 4 1 4 Login as admin if not already Click the Assign Security Specialists link either at the bottom of the confirmation page from the last section or in the Administrator Options box on the index page Choose a user from the list of registered traders to be a specialist for each security you want to assign a specialist to Click Assign Specialists View the results on the confirmation page You may change specialists at any point during the game by repeating Steps 1 3 of this section More Administrator Options The following steps should be followed to remove traders from the game or clear the entire database 1 2 Login as admin if not already Click the More Administrator Options link in the Administrator Options box or at the bottom of any of the administrator pages 3 Click the button on this page that corresponds to what you want to do 4 1 5 If you chose Clear database data you must now repeat the steps in section 4 1 1 to reconfigure the game Administrator Ending the Game The game will end automatically at the time you specified
26. n be used to host a competition within the business school The practical experience and the competitive nature of this simulation mean that many other applications are possible We gained significant experience in developing the SCU Stock Market Simulation Model Specifically we learned the use of new technologies in AJAX MySQL and PHP It was also a very practical project since we had the chance to develop a product for a real world customer Professor Sanjiv Das while at the same time reporting to our faculty advisor Professor Darren Atkinson Finally we had the chance to present our project to industry judges and others at the Senior Design Conference in the spring quarter We are honored to have received the Best in Session and Best in Conference awards from the Conference Our primary goal for this project however was to realize all essential requirements and to deliver a robust attractive system to our customer In achieving this goal our project became a success 32 Appendix Stock Price Generation and News Release Algorithms The following are the algorithm descriptions provided by the customer They were implemented in PHP and used to generate both the true stock price and the news release stock price which was within an administrator specified percentage of the true stock price 33 Stock Process in the Trading Game Sanjiv R Das April 13 2006 1 Basic Set Up Information disseminated in the tra
27. nformation error may be 7 0 40 i e 40 2 Generating the stock price path Given a stock price at t the next stock price is generated using the following equation 1 exp 29 h ee where N 0 1 i e it is a standard random normal variable This equation is the classic one used in finance for modeling stock price movements in discrete time as approximations of geometric Brownian motions Next given S we generate the information for the fraction of traders that are to receive partial information about the stock price Suppose this number of traders is L Then for each i 1 L we do the following Generate a random variable N 0 1 e Compute y 5 31 e f y lt S1 then the trader receives the following information Analysts expect the stock price to be worth at least y If y gt S1 then the trader receives the following information Analysts expect the stock price to be worth at most y We can of course tack on some verbiage about the market conditions and so on within which we embed this statement Repeat this for all 2 over all periods Once the information has been broadcast then we allow the traders to trade over time interval t 1 which is of length h minutes before redoing the next stock price Hence as is apparent this is a simpler implementation of the true stock price process over the life of the trading game and does not need a tree The r
28. o prevent simultaneous access of XML files There are three major advantages to using a DBMS such as the open source MySQL First the data is arranged by a schema or structure Second there is built in capacity for queries to retrieve data Third a DBMS supports transaction management so that concurrent access to data can be made without the introduction of errors in the data No file locking is needed Transaction management involves these qualities Atomicity Consistency Isolation and Durability ACID This type of support does not exist for simple text files or XML files For these reasons it was decided to use a DBMS MySQL for the trading game 2 6 1 Entity Relationship Diagram The following diagram represents the tables entities and relationships necessary to support the Stock Market Simulation According to standard practice a table is represented by a rectangle a relationship with a diamond and an attributes as an oval An attribute which is also a primary key has its text underlined A relationship that is many to one is represented by an arrow pointing towards the entity that contributes one one to one relationship has an arrow pointing towards each of the two entities Note that the table Portfolios is a weak entity that is it relies not only upon its primary key and also the foreign key of Traders lt CompletedOrders Cars gt Caine orderNo Securities s3 aae special
29. ogress Finally the main page has a description of the game Market Trading Game D i File Edit View History Bookmarks Tools Help E I gt 2 e QI fit http concerto engr scu edu seniordesign SeniorDesign webapp index php gt Google 49 Bank of America SC Weather Google SCU 77 Thefacebook M MapQuest 9 Originate Mail UsedGirlfriend phpMyAdmin G SeniorDesign C CSRWare 4 Stumble dy llikeit Z Sendto Chame A O Ge K Favorites d Friends Tools se STOCK MARKET GAME HOEFER amp J MASTROIEN Username Welcome to the SCU Stock Market Trading Game designed by Clayton Hoefer and Joe Mastroieni as a senior design project in 2007 Special Password thanks goes to Darren Atkinson for advising us on this project This game gives a real time simulation of NYSE trading Features include Login Create New Account Trading in up to 15 securities Individualized news for each trader Stock price generation Real time bid ask price graph Game variables configurable by administrator Ranks all traders at end of game Game is currently in progress Start Tue 05 Jun 2007 14 34 24 0700 End Tue 05 Jun 2007 15 34 24 0700 Note This page is best viewed using Firefox 2 0 or IE 7 15 3 1 2 Main Page Logged In as Typical User The following is a screen shot
30. ole of the traders as a collective group will be to use their partial bits of information and trade thus sharing information through the process of trading resulting in eventual price discovery This exemplifies how markets really work Figure 2 6 Stock Price Generation 2 of 2 35 Works Cited Das Sanjiv Guest Lecture Software Engineering class Equity Markets Trading Game Spring 2006 Joe Mocerino Ajax the Way of the Future Zunch 2 Feb 2006 http images google com imgres imgurl http blog zunch com UserFiles Image ajaxD iagram png amp imgrefurl http blog zunch com archive 2006 2 amp h2879 amp w 698 amp sz 78 amp hl en amp start 1 amp um 1 amp tbnid2ndtSUhHIV2ekJM amp tbnhz146 amp tbnwz1 16 amp prev images 3Fq 3Dajax 2Bdiagram 26s vnum 3D 10 26um 3D 1 26h1 3Den gt 36
31. or GOOGLE Home Play Game Configure Game Parameters Assign Security Specialists More Administrator Options 22 3 1 6 Administrator Options 3 More Administrator Options The following is the last administrative page It allows the administrator to remove individual users remove all users or simply clear all data from the database if he or she wishes to start a game entirely from scratch Each has a simple confirmation page not shown which tells if the operation was performed successfully File Edit View History Bookmarks Tools M 2 e KI fat http concerto engr scu edu seniordesign SeniorDesign webapp removeTraders php Google IS 4b Bank of America SC Weather G Google SCU 7 Thefacebook MapQuest 9 Originate Mail UsedGirlfriend phpMyAdmin G SeniorDesign CSRWare 4 Stumble Q sendtor 2 Channek 1 O Gh K Al vp Favorites Friends Tools HDEFER amp J MASTROIEN More Administrator Options Removeuser Steve Clear database data Home Play Game Configure Game Parameters Assign Security Specialists More Administrator Options 23 3 1 7 Trading Screen The following is the trading screen that each trader including the admin sees Note that the user who is viewing this screen has been assigned to be the specialist for Cisco
32. p home php iG Google 4 8 QU Stumble G F Sendto D Chant 2 07 E GL sp Favorites Friends Tools Specialist Limit Order Book Price 50 00 100 00 60 00 52 00 25 3 1 9 End of Game Traders can only trade during the specified game window or trading day When the game ends all of the traders in the system are sorted by net worth and the results are displayed in place of the regular trading screen An example of this is shown below trader with the highest net worth is shown in red at the top of the list ene a To O a eS File Edit View History Bookmarks Tools Help e 4 gt Google 49 Bank of America SC Weather Google SCU 7 Thefacebook M MapQuest 9 Originate Mail C UsedGirlfriend phpMyAdmin G SeniorDesign CSRWare TP e Q ft http concerto engr scu edu seniordesign SeniorDesign webapp home php 4 Stumble Q likeit F Sendtor D Channek A O fe 0 00 Al Favorites Friends Tools Welcome Clayton sign out 1 e 11 TIL Go to Home SEU ST MARKET GAME Hide This Menu Bar HOEFER amp J MASTROIENI Trading game completed Game duration 2007 06 05 14 56 11 to 2007 06 05 15 00 34 Rank Name Cash Holdings Stock Holdings Total Value 1 Clayton 510 00 33339 95 33849 95 2 Fred 1000 00 32666 87 533666 87 3 George 1000 00 32666 87 533666
33. rdesign SeniorDesign webapp setSpecialist php Google E 4b Bank of America SC Weather G Google SCU 7 Thefacebook MapQuest 9 Originate Mail UsedGirlfriend phpMyAdmin G SeniorDesign CSRWare 4 Stumble likeit F Sendto Chame RX O G AI e 4 Favorites Friends Tools HDEFER amp J MASTADIENI Set Specialists Stock Specialist APPLE Albert CISCO Chris DELL INC EBAY admin GOOGLE Allen Assign Spec Bob Chris Clayton HEN m E Fred lay Game Confiqure Game Parameters Assign Security Specialists More Administrator Options George Jorge Steve 21 set Specialists Mozilla Firefox m gt mA Gh File Edit View History Bookmarks Tools Help Qm roo S nip concerto engrscu edu senicrdesign SenicrDesign webapp setSpecialist php e Cl amp 4b Bank of America SC Weather G Google SCU 7 Thefacebook MapQuest 9 Originate Mail UsedGirlfriend phpMyAdmin G SeniorDesign CSRWare 4 Stumble Q Sendto 2 Channek 1 O Gh K Al e sp Favorites Friends Tools Successfully set specialist for APPLE Successfully set specialist for CISCO Successfully set specialist for DELL INC Successfully set specialist for EBAY Successfully set specialist f
34. rice graph adjustable administrator parameters capability for easy setup to facilitate classroom use and robust code that correctly simulates NYSE rules Another vital goal was making the website fast easy to use and aesthetically pleasing In addition our goal was to fully document the project so that later groups could easily understand and make upgrades to our project 1 2 Concept The concept of the SCU Stock Market Simulation Model is directly linked to the concept of the New York Stock Exchange to estimate the true price of a stock from freely available information and to act on this information in such a way as to make money In the real market this information may come in the form of analysis by market experts news relating to a stock or the current bid ask spread The bid is the current highest buy order and the ask is the current lowest sell order In our model traders get information from two sources news which is displayed periodically on the trading screen and the bid ask spread which is shown via the stock price graph In our simulation just as in the real market quality of information may vary for different traders Some traders may get news that accurately predicts the stock s true price while others have to rely on less accurate information Note that the news is generated randomly with the administrator setting the overall accuracy of the news To succeed in our simulation you need an analytical skill th
35. t trading through the use of the simulation This overconfidence might lead to disastrous results if a student attempted to manage his stock market portfolio with little knowledge or experience beyond the simulation However we determined that in an undergraduate classroom setting at Santa Clara University this risk was negligible Certainly most students know there is a very real difference between playing a simulation with imaginary funds and risking your own savings There is a real benefit to society however that stems from the SCU Stock Market Simulation Model This benefit is the experience that students can gain trading stocks just as they would on 3l the NYSE They can learn valuable analytical skills without financial risk to themselves or others Section 6 Conclusion The SCU Stock Market Simulation Model has been completed in a manner that satisfies all essential requirements of our customer Professor Sanjiv Das of the SCU Finance Department Further upgrades are possible but we have built a fully functional simulation model ready for use in a classroom This simulation model is a valuable tool for all those who wish to study stock market behavior or to learn stock trading techniques without financial cost In the short term we expect that this simulation will be successful in giving SCU finance students a hands on experience of market trading Longer term this project can be used in a variety of contexts for example it ca
36. the style of the page 2 4 Browser Compatibility There are numerous web browsers on the market and we wanted the trading game to be accessible through as many of those as possible However due to the limited scope of this project we decided to limit our browser compatibility to the two most mainstream browsers Mozilla Firefox 2 0 and Microsoft Internet Explorer 7 2 5 PHP We considered several options for our server side scripting language and underlying persistent storage layer before deciding on the combination of PHP and MySQL PHP was very convenient for this project for several reasons First it can be embedded in HTML code making it easy to see the scripting logic along side the HTML that is rendering its output Second it has an easy to use MySQL API making interaction with MySQL database extremely simple In addition there are several AJAX libraries written for PHP which allowed us to generate the dynamic functionality we wanted Finally PHP has numerous pre written graph generation libraries We used one called pAplot to generate the bid ask graph 2 6 Database Management System There are two main database options for storing information simple text files or a more sophisticated Database Management System DBMS The obvious choice would be XML or Extensible Markup Language XML files are highly portable and have some degree of human readability files can be parsed by a web browser File locking would be required t
37. tor can specify the percentage of traders that receive news releases e The news stories will come from real news sources on the web the prices will be fictional and generated by the game as mentioned above e All data views prices transactions trend will be updated in real time on traders browsers e The trader screen will have a ticker tape containing stock prices e The game will have an administrator s page e The game will be robust and able to recover from crashers and or computer failures e Traders can trade in multiple securities e Each security will have its own specialist or specialists e Atthe end of the game the winner will be calculated and displayed Also displayed will be the final standings of all players who participated in the game sorted by net worth at the end of the game Section 2 Design Overview 2 1 Introduction Our approach to the design process was fairly straightforward We had clear requirements that had been set down by our customer and we chose our technology to best fulfill these requirements without compromising the time frame or scope of the design project From the requirements we deduced that the system must be web based and contain the following pieces a web server running a server side scripting language a relational database for data storage and client side component to render the user interface and run a client side scripting language We created entity relationship diagrams and a
38. ulate many variables and to launch the simulated stock market on his own time We had the opportunity through this project to design develop and deliver a product to our customer Professor Sanjiv Das of the Santa Clara University Finance Department We also experienced new technologies in the effort to best fulfill our customer s requirements Besides developing a product that would meet the customer s requirements and would function under stress another vital goal was to design our project for later upgrades We envision this project being used by the SCU Finance Department in many classes dealing with stock market behavior and further upgrades will increase the performance and customization of the SCU Stock Market Simulation Model Acknowledgements We would like to thank Professor Darren Atkinson and Professor Sanjiv Das for their advice and support throughout the development process of the SCU Stock Market Simulation Model Table of Contents Page Section 1 Rh id o e usta 1 1 1 Objectives Purpose and CO AIS yon ty oct vox EORR ARP ange accion xg ur 1 VED 80 cia sy E 1 1 3 reliure AaS 3 Secon 2 Desist OVerVIGW ano E quee eM ee econ ene 4 21 4 2 2 Development Limie life 30 teen eeu RUNE 6 2 3 Graphical
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