Software Requirements Specification

for

Stock Market Simulator

Version 1.0 approved

Prepared by Divesh Mirchandani, Abhishek Oturkar, Sumit Kriplani, Kedar Nadkarni

30-01-2015

Table of Contents

Table of Contents ii
Revision History ii
1. Introduction 1 1.1 Purpose 1 1.2 Document Conventions 1 1.3 Intended Audience and Reading Suggestions 1 1.4 Product Scope 1 1.5 References 2
2. Overall Description 2 2.1 Background 2 2.2 System Context 2 2.3 System Capabilities 3
3. Behavioural Requirements 4 3.1 System Inputs & Outputs 4 3.2 Detailed Output Behaviour 4 3.3 Software Interfaces 4 3.4 Communications Interfaces 4
4. Quality Requirements 12
5. Fundamental Assumptions 12
6. Expected Changes 12
7. Appendices 13

Introduction

1 Purpose

To fully document the expected functionality and requirements for our Stock Market Simulation Game.

2 Document Conventions

• Concept of Operations gives a user-oriented, high-level overview of our Stock Market Simulator. • Behavioral Requirements gives a more-detailed vision of the simulator's operations, which is better suited to developers and those interested in the technology.

3 Intended Audience and Reading Suggestions

The set of stakeholders includes the team members, the project and overseeing managers, and potential users of our stock market simulation. • Team Members - can use this document to gain a detailed understanding of the requirements needing to be met by our product from both user-centric and design-centric viewpoints. • Managers - can use this page to assess the level of detail the group is working from to guide development. • Potential Users - can view this page to gain deeper insight into the program specifications if they are interested in the development process.

4 Product Scope

The main goal of this project is for potential investors to gain a fundamental knowledge of the stock market, how it works and how to invest, using a simulation program. Throughout the duration that the simulation will run we will learn about the different types of funds and the strategies in investing in them. We plan on doing this by each taking our initial two-hundred fifty thousand dollars and investing it according to our pre-decided methods. After the course has expired we will analyze our methods and come to a conclusion as to why or why not they fared well.

Potential investors must also be made aware of the different types of stocks such as blue-chip stocks, income stocks, growth stocks, value stocks, cyclical stocks, defensive stocks, speculative stocks, penny stocks, foreign stocks, capital stocks, hedge funds, etc.

5 References

1. Schwager, Jack D. Getting Started in Technical Analysis. New York : John Wiley, 1999.

2. Kaplan, Inc. Level 1 Book 1: Ethical and Professional Standards, and Quantitative Methods. s.l. : Kaplan Schweser, 2009.

3. Thomson Reuters. Financials. Reuters. [Online] 2010 February. http://www.reuters.com/sectors/financials.

4. Boyd, John H, Levine, Ross and Smith, Bruce D. The Impact of Inflation on Financial Sector Performance. 2001, Journal of Monetary Economics, pp. 221-248.

5. Thomson Reuters. Stocks. Reuters. [Online] 2010 February. http://www.reuters.com/finance/stocks.

6. StockCharts.com. Charting Tools. StockCharts.com. [Online] 2010 April. http://stockcharts.com/charts/.

7. Moon, Beth Gaston. State Street (NYSE: STT) Overcomes Resistance. ONN.tv. [Online] 2010 19-February. [Cited: 2010 20-February.] http://www.onn.tv/need-to-know-basis/statestreet-nyse-stt-overcomes-resistance/.

8. Google Finance. Google Finance. Google. [Online] 2010 February. http://www.google.com/finance.

9. Investopedia. Game: Investopedia Stock Only Game 2009 - No End. Investopedia. [Online] 2010 February - April. http://simulator.investopedia.com/Portfolio/.

Overall Description

1 Background

This intention of this project is to simulate a stock exchange environment for users to learn the basics of stock exchange. This learning process can be simple, stress free, and enjoyable in a gaming environment. This environment allows players to hone their skills through competition with other players using virtual money to buy and sell stocks based on a real stock market. Each player can to formulate their own strategy and assess their performance through our user-friendly, web based stock exchange simulator. Through experience, players will gain confidence in their investing abilities using a variety of stock exchange techniques, which have been implemented in our software. We hope to make the difficult task of learning to invest in a high risk, stock exchange market an enjoyable experience.

2 System Context

• Web based application – HTML based application written using the Django web framework. • Includes: o Registration/ Login system o Game cycles o User history - all data saved for user portfolio available for reference during a login session o User interface- for viewing portfolio, watch list and making transaction o Real world stock data- downloaded from Yahoo Finance through the Yahoo API

• Compatible with major web browsers.

• Server side database system for information storage.

3 System Capabilities

Users will find the following capabilities present in our stock market simulator based on the currently released version. The first publicly available version will be Version 1.5.

1. Basic System Capabilities (Included in Version 1.5): 1) Users are able to sign in and view the contents of their profile. 2) Upon signing in, users can view the current status of their assets (stocks + money) they currently own as well as their interested stocks(track list). 3) A search bar will be available to users so they can search for stocks that they wish to purchase, view, or track. 4) Upon viewing a stock item, users can decide to purchase shares of stocks, sell their currently owned shares of stock, and track the stock if they do not own any shares of said stock. 5) User sessions are saved so that when viewing other elements of the page, they will not be logged out unless they wish to.

2. Advanced Features (Included in Version 2.0): 1) Players can start games with their own customized settings. 2) Dartboard Agents will provide randomized competitors for the user to compete against. 3) Virtual stock market will have varying stock trading strategies to compete with the user. 4) An API available for users to test various stock buying strategies. 5) Stock strategy analysis will be available based on overall user performance.

Behavioral Requirements

1 System Inputs & Outputs

1 Inputs

• Pre-processed, HTML formatted document. • Username and login information stored in database. • Previous session data, which shows the changes the user has made during the previous login. • User inputs: o Stock ticker names for search. o Clicking on a stock element would display more information about the stock. o Specify the buy of a stock. o Specify the amount of certain stocks they wish to sell from their assets. o Enter game creation information.

2 Outputs

• Processed stock returned from Yahoo API. • Processed transaction based on buy and sell from the user. • Game created and its information is stored in the database.

2 Detailed Output Behaviour

1 Use Case: Registration

Actors: User
Preconditions: User at homepage
Triggers: User clicks the sign up link
Flow of Events:

1 Basic Flow: Registration

1. User clicks "sign up for a new account" 2. User inputs required information 3. Clicks "create the username"

3.2.1.2 Alternative Flow 1. Click the "Sign In" tab 2. Click the "Create an account" 3. User inputs required information 4. Click "create the username"

2 Exceptions

1. User creates username/password combination outside the stated limitations Post conditions: User taken to their profile page

2 Use Case: Login

Actors: User
Preconditions: User has an account and is not currently logged in.
Triggers: User clicked the "Sign In" tab.
Flow of Events:

1 Basic Flow: Logging in

1. User inputs account information(Username: Password) 2. Clicks the login button.

2 Alternative Flow

1. User is a homepage. 2. User clicks “Login to your account”. 3. Inputs login information(Username: Password) 4. User clicks the login button.

3 Exceptions

1. If user does not have an account. 2. User input name/password wrong, will prompt to re-enter log information. Post conditions: User taken to their profile page

3 Use Case: Searching Stock

Actors: User
Preconditions: User is at site.
Triggers:
Flow of Events:

1 Basic Flow: Stock Search

1. At any point of browsing the site, user clicks the “Stocks” tab at the top. 2. A popup module appears. 3. Enter the stock you want to search with its Ticker name in the “Ticker” field. 4. Hit Search to be redirected to the information page related to that stock.

2 Exceptions

1. None, user clicks wrong tab? 2. Ticker name not defined, error will be generated.

Post conditions: User taken to a page that displays information relevant to the searched term.

4 Use Case: Stock Buying

Actors: User
Preconditions: User is logged in.
Triggers: User has searched the stock
Flow of Events:

1 Basic Flow: Buying

1. User selects “Buy” at transactions drop-down menu in the “Buy/Sell” tab on the page. 2. Enters the quantity to buy. 3. Click Trade 4. Shares brought added to User’s assets. 5. Money deducted from user’s account.

2 Alternative Flow

1. User is at their portfolio page 2. Next to the stock they wish to purchase, click the “Trade” button. 3. A popup module will show up. 4. Select “Buy” at transaction drop down menu, and then input its quantity to buy. 5. Click “Trade” button within the module to complete its transaction.

3 Exceptions

3. If user does not have an account. 4. User does not have enough money to purchase stated share amount. Post conditions: User taken to their profile page

5 Use Case: Tracking Stock

Actors: User
Preconditions: User is logged in.
Triggers: Stock detail displayed upon search.
Flow of Events:

1 Basic Flow: Tracking a stock

1. User clicks the “watch” button in the “Buy/Sell” panel. 2. Stock added to the user’s track list.

2 Exceptions

1. If user does not have an account. Post conditions: User taken to their profile page

6 Use Case: Selling Stock

Actors: User
Preconditions: User owns shares of a given stock and is logged in.
Triggers: User has searched the stock or User is in portfolio page.
Flow of Events:

1 Basic Flow:

1. User selects “Sell” at transaction drop-down menu in “Buy/Sell” panel. 2. User enters the desired share amount to sell. 3. User clicks the “Trade” button. 4. Stated amount of shares is deducted from user’s accounts. 5. Money added to user’s total money pool.

2 Alternative Flow

1. Trade button is clicked next to stock(in portfolio). 2. Select “Sell”. 3. Enter quantity to sell. 4. Submit the transaction.

3 Exceptions

1. If user does not have an account. 2. User does not own any shares of the stock. 3. User enters an amount that would exceed their current money.

Post conditions: User taken to their profile page

7 Use Case: Remove Stock from Track List

Actors: User
Preconditions: User has the stock marked as “Watched”
Triggers: User clicks the Un-watch button on portfolio page next to stock.
Flow of Events:

1 Basic Flow:

1. Stock listed under “Watched” is removed.

2 Alternative Flow

1. User buys shares of the stock. 2. Stock removed from their track list and moved to owned stocks.

3 Exceptions

1. If user does not have an account. 2. User is not currently tracking the stock. Post conditions: User taken to their profile page.

8 Use Case: Creating a Game

Actors: User
Preconditions: User is logged in.
Triggers: Game tab is selected at top panel.
Flow of Events:

1 Basic Flow:

1. Select “Create a new game!” 2. User redirected to game creation page. 3. User inputs desired parameters for the game. 4. Hit the “Create the game” button.

2 Exceptions

1. Wrong input format. 2. Game name already exists. Post conditions: Redirected game page for the newly created game, listing the user as a participant.

9 Use Case: Joining a Game

Actors: User
Preconditions: User not already in the particular game, and is logged in.
Triggers:
Flow of Events:

1 Basic Flow:

1. In the desired game information page, user clicks “Join this game” button.

2 Exceptions

1. None

Post conditions: User redirected back to their own portfolio page with the game listed under “Current Games”.

10 Use Case: Adding Agent to Game

Actors: User
Preconditions: Game already created, User is the one that created the game.
Triggers:
Flow of Events:

1 Basic Flow:

1. Select the game to add agent for under “Active Games”. 2. Input agent name. 3. Select the agent type. 4. Select the aggression level for the AI. 5. Hit the “Add agent”.

2 Exceptions

1. Agent name already exists(in any possible game). 2. User is not the game creator. Post conditions: Agent added to game and is listed under Participating Users

11 Use Case: Making Orders

Actors: User
Preconditions: User is logged in and has a portfolio linked to a game.
Triggers:
Flow of Events:

1 Basic Flow: Logging in

1. Search the stock to make an order. 2. Select Orders at the right panel. 3. Choose the “Order Type”. 4. Choose the “Trade Type”. 5. Input the “Trigger Price” and the “Quantity”. 6. Hit the “Place Order” button.

2 Exceptions

1. Selected “Stop Loss” + “Buy” combination. Post conditions: Order made, and redirected back to portfolio. (actions will occur when conditions for the order are met In the future of game play)

12 Use Case: Log Out

Actors: User
Preconditions: User has an account and is loggin in.
Triggers: User logged in.
Flow of Events:

1 Basic Flow:

1. User clicks the “sign out” tab.

2 Exceptions

1. User is not logged in. Post conditions: Logout message is displayed on page.

Quality Requirements

1. Security: 1. User's account information will stored so that each user can only view their profile 2. Login information will be stored as hash data 2. Consistency: 1. Previous changes will be available to users upon reentries to the system 3. Maintainability: 1. The code should be divided into modules based on expected changes. Functions that are expected to change together should be placed in the same module.

Fundamental Assumptions

• API may change in terms of syntax, functions, usability, etc.
• Commonly used web browsers will have no major changes in the near future
• Users will not have real-time data
• Data obtained from API will not be real-time data
• More modules will be added

Expected Changes

• The complexity of stock exchange: • Iteration 1: simple buy and sell • Iteration 2: more complex stock exchange techniques are available • Iteration 2: more markets available to trade in
• The display of information: • Iteration 1: simple and plain page(s) to display data and enter transactions • Iteration 2: better looking UI with more advanced organization and display of portfolio/historical data
• The complexity of AI: • Iteration 1: virtual player does simple tasks with a single stock (used as a simple example for compare their performance to) • Iteration 2: virtual player makes more complex transactions and can have more than one stock in its portfolio
• Database information storage formate
• UI views

Appendices

|Keyword |Definitions |
|Short-Sell |The trader borrows stock (usually from his brokerage which holds its clients' shares or its own shares on |
| |account to lend to short sellers) then sells it on the market, hoping for the price to fall. The trader |
| |eventually buys back the stock, making money if the price fell in the meantime and losing money if it |
| |rose. |
|Margin Buying |The trader borrows money to buy a stock |
|Brokerage |A service that offers advice and management of an individual's investment account |
|Stocks |Shares of a company that individuals can purchase for ownership claim to a company. Two types: Common |
| |Stocks, Preferred Stocks |
|Limit Order |An order placed with a brokerage to buy or sell a set number of shares at a specified price or better. |
| |Limit orders also allow an investor to limit the length of time an order can be outstanding before being |
| |canceled. |