GeWorko Method is an innovative approach to study of financial markets and analysis of their dynamics. In fact, it is based on Forex concept, according to which, one financial asset is quoted by another. According to GeWorko Method, the concept is expanded for portfolios that stand for base and quoted parts. More precisely saying, one combination of assets is quoted by another combination.
Only with IFCM Group you can create and trade new financial instruments from a variety of available assets.
What is GeWorko Method?
GeWorko Method is a method of creating and trading a new class of instruments called PCI (personal composite instruments). This synthetic instrument is created from the available financial instruments. The concept of the new class of instruments is fully based on Forex trading, where trading instruments are composed of B/Q parts.
However, the new class of instruments, being based on this concept has a significant distinction – instead of single assets in both base and quoted parts these new instruments are composed of base and quoted portfolios. The portfolios can contain instruments from completely different classes – currencies, stocks from different markets, indexes, commodities, and many more. This means that each part can contain not only more than one asset, but also assets from various financial sectors. Moreover, each component asset has an individual weight in the total structure of the instrument, which results in creating instruments in accordance to the user’s trading strategies.
Nevertheless, investors may prefer creating instruments containing only one currency in each part of the instrument that will make the PCI a standard currency pair (as usual, a new cross rate).
Advantages of GeWorko Method
Personal composite instruments, created by GeWorko Method, are used for analyzing financial markets, studying complex interrelations between assets and their combinations on historical charts. Moreover, traders instantaneously obtain the opportunity for trading the created instruments.
- Create and trade your own unique instruments, which are stable to the volatility of the markets for a long period of time
- Compose and trade positional portfolio (consisting of long and short positions) and make its graphical analysis
- Analyze deep price history of the created instruments both in absolute terms and in relation to any other asset or portfolio
- Quote one portfolio (base portfolio) in the units of another (quoted portfolio)
- Build both simple and complex portfolios, including dozens and even hundreds of financial assets
- Use different trading strategies like Pair trading/Spread trading, arbitrage trading, etc.
- Utilize ready PCI, created by professional analysts
- Trade unlimited amount of financial instruments based on your taste and understanding of the market
- Simplify portfolio rebalancing: analysis and rebalancing of the portfolio is integrated in the trading platform
- Ideal opportunity for looking at market trends from a different angle. Analyze different markets, its segments or world markets’ relationships with powerful analytical tools
- Create and trade new cross rates on fly with a few mouse clicks
- Absolute flexibility, as each component of the portfolio has an individual weight, expressed in percent
- Scalability, flexibility and universality which open up new horizons for analysis and trading
- Reduce long-term risks
Each user of trading-analytical terminal NetTradeX gets access to a unique technology, providing an opportunity to create unique Personal Composite Instruments (PCI).
The purpose of the Method
The method is primarily for the analysis of financial markets, the study of complex interrelations between assets and their combinations. The method provides convenient technology for technical analysis of complex asset portfolios, the study of the behavior of portfolios, based on historical data. Absolute flexibility of the method and its practical implementation on NetTradeX trading platform are achieved by giving each asset an individual weight in the total structure, including both long and short positions in the portfolio, using hundreds of different asset classes.
The method allows the trader to realize his trading ideas and strategies by personal composite instruments, to check the behavior of his instruments, based on long-term historical data, to find the optimal ratio of the projected profitability and risk tolerance.
GeWorko Method application in practice allows you not only to quickly transfer your ideas to trading-analytical system and to estimate them based on historical data, but also to trade created personal instruments – you can find the details of trading realization on Personal instruments page. In fact, the trader is not restricted by the number of available financial instruments any longer, getting an opportunity to create personal instruments, reflecting his own trading ideas and having its graphical history. The method allows to turn two asset portfolios into a new trading instrument, but there is a great variety of such compositions. As a result, practically unlimited number of new instruments for analysis and trading become available for the trader.
Uniqueness of GeWorko Method
The GeWorko Method was developed by IFCM Group, which is a sole proprietor of the method, so traders can only use the method within the companies of IFCM Group. It is important to note that the method is available only on professional trading platform NetTradeX.
IMPORTANT: While IFC Markets offers MetaTrader Platform for regular trading Forex, Stocks, Commodity, Indexes, the GeWorko Method and its implementation are not available there. It is due to the architectural and design limitation of MetaTrader platform.