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About GeWorko Method and PCI

Author: Araik Zohrabyan
by Araik Zohrabyan
Posted: Mar 29, 2016

GeWorko Method lets you create and trade an innovative class of new instruments known as PCI (personal composite instruments). The synthetic instrument is made from existing financial instruments. The concept of PCI is completely based on forex trading, where the trading instruments are made of B/Q parts. However, the latest class of instruments that are based on this concept has an important distinction—instead of single assets in quoted and base parts, the instruments are made of the base and quoted portfolios.

In GeWorko Method, portfolios can have instruments from different classes, such as stocks from different markets, currencies, indexes, and commodities. Each aspect can have over one asset and assets from other financial sectors. Moreover, every component asset will have an individual impact on the overall structure of the instrument, so that you can make instruments based on your trading strategies. Nevertheless, you may choose to make instruments that contain only a single currency in every part of the instrument to make the PCI the standard currency pair.

The physical explanation of PCI = P1/P2 is the exchange rate of a financial portfolio expressed in another portfolio's units. The purpose of this method is to help you analyze financial markets and study the complicated interrelations between the assets and their combinations. Through GeWorko, you should be able to technically analyze complex asset portfolios and study their behavior based on historical data. The method is designed to be flexible and easy to implement on trading platforms like NetTradeX when you provide an individual weight for each asset in the total structure.

Through GeWorko Method and PCI, you should be able to realize your trading strategies and ideas using your own composite instruments. Likewise, you should be able to check your instruments' behavior based on historical data to determine the optimal ratio of projected profitability and the risk tolerance. In practice, the method lets you transfer ideas to a trading-analytical system and estimate them, and it lets you trade your personal instruments, too. There are no limits to the number of financial instruments, so you can make as much as you want based on your trading ideas. This way, you can transform two asset portfolios into an innovative and new trading instruments.

GeWorko Method is applicable in a good number of ways, such as conversion of the quoted currency, simple portfolio of assets, spread trading and pair trading, and structure of two portfolios. Practice and study revealed that it can be exclusively useful for many different investment strategies and ideas.

About the Author

Araik Zohrabyan is the Public Relations Officer at IFC Markets He provides current and summarized information to enhance business awareness.

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Author: Araik Zohrabyan

Araik Zohrabyan

Member since: Mar 09, 2016
Published articles: 9

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