Personal Composite Instruments (PCI)
PCI technology is invented for practical realization of GeWorko Method. The principle of the technology is as simple as the concept of trading pairs on Forex Market where the value of the base asset is expressed in the value of the quoted one. The uniqueness of the method is that there are no limitations on portfolio composition: only the user may determine what assets to include in a portfolio and whether to create a simple or a complex portfolio for analysis and trading. That is to say, imagination is the only determinant here.
PCI trading execution is carried out only on NetTradeX analytical trading platform that grants access to the unique technology, providing investors, traders and analysts with an opportunity to individually make a PCI, with unlimited variations (new cross rates, correlations between various assets, currency indexes, stock portfolios, portfolios for pair trading and many more). A deep price history of each composite instrument is offered on the platform, alongside with a newsfeed. Moreover, the price history is obtained both in absolute terms and in relation to any other asset or portfolio. Technical analysis, with the help of the fundamental one help to better understand and adequately analyze the interrelations between various assets and their combinations, study the behavior of the instruments and create optimal Personal Composite Instruments. With the help of the Quick Guide traders may go through the detailed instructions and steps that help them to create their very own PCI in just a few minutes.
Advantages of PCI
The structure of PCI technology allows the following:
- Creating instruments in form of portfolios with various degrees of complexity, from very simple, including only two assets, to complex combinations, consisting of dozens and hundreds of instruments
- Simultaneous opening of short and long positions in base and quoted portfolios, respectively
- Giving each component (asset) an individual weight
- Specifying weights to components in units of the asset volume, expressed in the U.S. dollars. The weights are given in percents of the whole volume of the portfolio (of the base or quoted); the U.S. dollar, as an asset, can be included only in the quoted portfolio. Modification of the instrument is realized in a simple and user friendly interface.
- Instant receiving of deep price history of personal instruments for making accurate technical analysis
- Maintaining the database of the created personal instruments
First of all, personal instruments, created by GeWorko Method, are used for analyzing financial markets, studying complex interrelations between assets and their combinations on historical charts, analyzing the behavior of the portfolios and the market itself, and secondly, it is used for trading.
PCI Trading Features
Current Bid and Ask prices of PCI are calculated, corresponding to the current Bid and Ask prices of all components, taking into consideration their weights in the overall structure of the instrument. PCI is quoted to the fourth decimal point. Due to the fact that new ticks of the components arrive at different hours, PCI spread slightly deviates from stable average value. The created PCI can be traded only at trading hours of its components.
Note that PCI trading actually means group of operations with its components, when a series of deals can be made in given volumes and directions by one command. Created PCIs are available only on the user's terminal. Deals on components arrive to NetTradeX server, where the transfer of positions to the markets of available assets and hedging are performed. Moreover, while making transactions with PCI, fractional volumes appear for many components, which is not common in classic trading, but deals on each asset arrive to the server and are summed up: moreover, transfer and hedging are executed by lots (the fractional balance from the asset sum is very little and is considered by the company risk-management).
If the trader has opened a PCI position, all corresponding positions of this personal instrument components are available to the trader. Moreover, in case the trader closes the position on even one component, that PCI ''breaks down'' (and is deleted from the PCI database). Nevertheless, components remain as common positions.
Common pending and linked orders of Take Profit and Stop Loss can be set on created PCIs, like on common instruments.You can find the instruction how to create and apply PCI by GeWorko Method on NetTradeX terminal on Quick Guide page.
Traders and fund managers can find articles on the application of GeWorko Method and specific PCI examples in the regularly updated Learning Center.