DSF : Digital tools and trading strategies

Catalogue des cours de Institut Mines-Télécom Business School

Code

MGFE FIN 6203

Niveau

M2

Discipline

Finance

Langue

Anglais/English

Crédits ECTS

2

Heures programmées

16

Charge totale étudiant

40

Coordonnateur(s)

Département

  • Data analytics, Économie et Finances

Equipe pédagogique

Introduction au module

This course introduces students to the use of digital tools for financial market analysis and trading strategy design. It covers financial markets, fundamental and technical analysis, market psychology, chart analysis, indicators, volatility, intermarket analysis, international markets and an introduction to quantitative trading. Students apply these tools individually through the management of a virtual portfolio. Each student is provided with an individual account on the ProRealTime platform, which is used for technical analysis, market monitoring and the execution of simulated trading orders. Students document and justify their investment and trading decisions throughout the course.

Bloc de compétences

  • 6. Concevoir et/ou piloter des solutions de gestion innovantes en veillant à garantir une création de valeur soutenable pour toutes les parties prenantes

Compétences du bloc

  • 6.2 - Optimiser l'usage d'outils adaptés aux différents domaines de gestion, et définir et interpréter les KPI pertinents, afin de mesurer et garantir une création de valeur durable et soutenable pour toutes les parties prenantes.

Objectifs d'apprentissage du cours

By the end of this PGE M2 course, students will be able to:
1. Analyse the role of financial markets and distinguish fundamental analysis from technical analysis in investment and trading decisions.
2. Interpret price charts, market trends and major chart patterns by relating them to market psychology and investor behaviour.
3. Use a technical analysis platform to configure market indicators, monitor financial instruments and support trading decisions.
4. Apply technical indicators, oscillators and volatility measures to analyse market dynamics across different time horizons.
5. Combine technical analysis, fundamental analysis and intermarket analysis to formulate investment and trading strategies.
6. Manage an individual virtual portfolio by applying market analysis tools, defining and executing trading decisions, managing risk, and monitoring portfolio performance.
7. Present and justify a trading strategy and portfolio management approach using structured financial arguments and appropriate digital tools.
8. Explain the basic principles of quantitative and systematic trading and understand how trading rules can be translated into testable or automated strategies.

Contenu : structure du module et agenda

1. Introduction to Financial Markets, Fundamental Analysis and Technical Analysis
2. Technical Analysis of Financial Markets
2.1 Historical overview
2.2 Market psychology
2.3 Price representation
2.4 Main chart patterns and their psychological meaning
3. ProRealTime Trading and Technical Analysis Platform
3.1 Introduction to the ProRealTime platform
3.2 Individual account setup and platform configuration
3.3 Charts, indicators, watchlists and market monitoring
3.4 Order types and execution of simulated market orders
3.5 Introduction to individual portfolio management
4. Technical Analysis of Financial Markets: Further Topics
4.1 Indicators and oscillators
4.2 Volatility
4.3 Fractal structure of markets
4.4 Time in financial markets and the psychology of time
5. Intermarket Analysis
6. Technical Analysis and International Markets
7. Combining Technical and Fundamental Analysis
7.1 Use of technical analysis alongside fundamental analysis
7.2 Application to investment approaches
7.3 Application to trading strategies
8. Introduction to Quantitative Trading
8.1 From discretionary trading to rule-based trading
8.2 Basic principles of quantitative trading: signals, trading rules, backtesting and risk management
8.3 Introduction to the design and testing of simple systematic trading strategies
8.4 Optional extension: motivated students may code indicators, trading tools and simple automated trading strategies using the programming capabilities available on ProRealTime
9. Live Financial Market Session
9.1 One live trading day on financial markets
9.2 Individual market analysis and discussion of trading decisions during key market moments
9.3 Debriefing of the market analysis and trading decisions
10. Advanced Technical Analysis and Trading Room Practice
10.1 Presentation of the speaker's trading room
10.2 The right-hand side of the chart
10.3 Contrarian analysis
10.4 Financial press, market consensus, professionals and retail investors
11. General Conclusion

Contribution à l'atteinte des ODD (Objets du Développement Durable)

SDG 9 – Industry, Innovation and Infrastructure: This course contributes to SDG 9 by developing students’ ability to use digital financial-market tools and data-driven analysis methods to support innovation in investment and trading practices.

Nombre d'ODD abordés parmi les 17

1

Apprentissage

synchrone

Méthode pédagogique

Before the first class, students will be provided with links to preparatory videos and/or documents that they are required to review in advance.

The course combines lectures, demonstrations and individual practical work. Each student is provided with an individual ProRealTime account and manages a virtual portfolio throughout the course.

Lectures introduce the concepts, tools and analytical frameworks used in financial market analysis and trading. Practical sessions require students to apply technical analysis, fundamental analysis and market-monitoring tools to real-time or simulated market situations, formulate trading hypotheses, execute simulated orders and monitor the resulting positions.

Students are expected to document and justify their trading decisions and portfolio-management choices throughout the course. Their individual portfolio and work will be reviewed regularly in order to provide feedback on their analysis, decision-making process and risk management.

An introductory section on quantitative trading will also expose students to systematic and rule-based approaches. Students with a particular interest in the subject will have the opportunity to develop simple coded indicators, trading tools or automated trading strategies.

Système de notation et modalités de rattrapage

Attendance is mandatory for this course.
The assessment is entirely individual and evaluates students' ability to use digital tools for financial market analysis, manage a virtual portfolio, formulate and execute trading decisions, apply technical and fundamental analysis, and critically assess their investment and trading strategies.
The final grade is composed of four components:
• ProRealTime platform proficiency assessment - 10%: A practical assessment will take place during the second session to verify that students are able to use the ProRealTime platform independently and correctly execute basic market orders.
• Continuous assessment - 30%: Students' individual work and virtual portfolios will be reviewed approximately once or twice per month. Assessment will take into account the regularity and quality of the work, the relevance of market analysis and trading decisions, portfolio monitoring, risk management and the student's ability to justify decisions.
• Final oral presentation - 20%: Each student will present and defend their portfolio-management approach, selected trading decisions and the main lessons drawn from the course.
• Individual work report - 40%: Each student will submit an individual report documenting the work carried out during the course, the evolution of the portfolio, the analyses and strategies used, selected trading decisions, results obtained and a critical assessment of the approach followed.
Portfolio performance alone is not a grading criterion. Assessment focuses primarily on the quality and consistency of the analytical process, risk management, execution, monitoring and justification of trading decisions.
Unjustified absences will result in a penalty equal to 20% of the module grade.
The second-chance assessment, CF2, consists of a written in-class exam.

Règlement du module

1. Professor-Student Communication
The professor will communicate with students through their institutional school email address (IMT-BS/TSP) and/or the Moodle portal. No communication will be sent to personal email addresses. Students are responsible for regularly checking their IMT-BS/TSP mailbox and Moodle announcements.
Students may contact the professor by email using the professor's institutional email address. When necessary, students may meet the professor during office hours or by appointment.
2. Students with Accommodation Needs
Students who have a disability or any specific accommodation need that may affect their ability to complete the required work must inform the professor during the first class, in order to facilitate the necessary arrangements in accordance with the school's applicable procedures.
3. Class Attendance and Behaviour
Students are expected to attend class, arrive on time and behave respectfully throughout the session.
Unless explicitly authorised by the professor, the use of electronic devices, including computers, mobile phones and tablets, is prohibited during class. Students are not allowed to take photos, videos or audio recordings in the classroom without the professor's explicit consent.
Students must avoid disruptive or disrespectful behaviour, including arriving late, leaving early, sleeping, reading non-course material, using inappropriate language, speaking over others, eating or drinking during class, or engaging in any behaviour that disturbs the class. A warning may be given for a first violation. Repeated violations may lead to penalties, exclusion from the class and/or disciplinary proceedings.
A delay of up to 10 minutes is tolerated at the beginning of class. Attendance will be recorded on Edusign during this 10-minute period using a QR code provided by the professor at the start of each session.
Leaving the classroom before the end of the session without the professor's approval will be considered an absence.
In the case of remote learning, students must keep their camera on unless instructed otherwise by the professor.
4. Exams and Assessments
Students must arrive on time for exams and other assessments. A delay of up to 10 minutes is tolerated.
No student may continue the exam once the allocated time is over. No student may leave the room during an examination unless they have finished the exam and handed in all required documents.
Only the following items are allowed during exams:
• pens;
• student card;
• a non-programmable calculator, or a programmable calculator with activated EXAM mode.
All other items are prohibited.
Possession of any unauthorised electronic device, even if turned off, will be considered cheating.
Possession of a programmable calculator without activated EXAM mode, even if turned off, will be considered cheating.
A random check may be carried out after students are instructed to activate EXAM mode. Failure to prove that EXAM mode has been activated after this instruction will be considered cheating.
Students are responsible for knowing how to activate EXAM mode on their calculator before the exam.
Any violation of the instructions given by the professor or the examination supervision team will be reported to the Discipline Committee.

Références obligatoires et lectures suggérées

1. Murphy, J. J., Technical Analysis of the Financial Markets. Available at the school's media library.
2. Kirkpatrick, C. D. and Dahlquist, J. R., Technical Analysis: The Complete Resource for Financial Market Technicians. Available at the school's media library.
3. Pring, M. J., Technical Analysis Explained.
4. Edwards, R. D., Magee, J. and Bassetti, W. H. C., Technical Analysis of Stock Trends.
5. Bodie, Z., Kane, A. and Marcus, A. J., Investments.
6. Grinold, R. C. and Kahn, R. N., Active Portfolio Management.
7. Chan, E. P., Algorithmic Trading: Winning Strategies and Their Rationale.
8. Lo, A. W. and MacKinlay, A. C., A Non-Random Walk Down Wall Street.

Mots-clés

Digital trading tools; ProRealTime; financial markets; technical analysis; fundamental analysis; market psychology; chart patterns; indicators; oscillators; volatility; intermarket analysis; trading strategies; virtual portfolio; portfolio management; market timing; contrarian analysis; quantitative trading; systematic trading; algorithmic trading; backtesting; automated trading; risk management.

Prérequis

ACC 3403 EN (equivalent ACC 3003 FR), FIN3409 EN (equivalent FIN 3009 FR), INF 3403 EN (equivalent INF 3003 FR), LinkedIn Learning - Statistics Foundations 1 and 2, Business Math