2013-12-10 12:42:53 - Recently, companies NetTradeX and IFC Markets have announced about the joint launch of a unique product - a method of composite trading GeWorko, letting you create personal composite instruments (PCI) in the trading-analytic platform NetTradeX.
What are the advantages of the composite approach for market participants? It is very simple - absolute flexibility, universality and usability. These three principles are reflected in the process of creation of composite instruments, their subsequent analysis and trading based on them.
GeWorko portfolio trading method will allow you to fully express your creativity and inventiveness, to apply knowledge of financial markets and feel yourself as a creator of your own financial product.
• Create unique personal instruments, the variety of which is restricted only by your imagination: stock portfolios, currency indices, global stock indices, indices of precious metals, globally diversified portfolios, and many more; hundreds of trading instruments of various classes are available for creating composite instruments. Create the most fantastic
or, vice versa, the most conservative portfolios: they may possibly be the guarantor of your financial welfare.
• GeWorko method allows building portfolios of varying degrees of complexity, from the most simple, involving only two assets, to really complex combinations, involving dozens and even hundreds of instruments.
• Absolute flexibility is achieved by giving each asset an individual weight. You will be able to change the proportions of the assets in the overall structure and find the formula of the ideal composite instrument especially for you.
• Instant obtaining of deep price change history of the instrument (reaching up to 40 years), both in absolute terms and in relation to any other asset or portfolio, will help you to estimate the retrospective effectiveness of the composite instrument or to compare investment alternatives.
• You will be able to include both long and short positions in the portfolio, deriving the maximum benefit from market movements.
• Simple and user-friendly interface will allow you to easily orient in the process of building composite instruments.
After building a personal composite instrument by portfolio trading method you may proceed to its chart analysis: the latter, together with fundamental approach, will allow you to better understand the connection between the two sets of assets included in the composite instrument.
• Study the complexity of hidden interrelations between financial assets and their combinations. Estimate how strong two different stock indices are related to each other, compare the dynamics of industry sectors of different countries, look for differences or similarities in the behavior of prices of metals, currencies, commodities, stocks.
• Identify and analyze periods of anomalous behavior of financial assets, when they run out of the usual dynamics, predicting reversal points or structural changes in the market.
• Apply tools of technical analysis to predict the behavior of the newly created instrument and its components: a combination of assets, united under a common idea, can provide more significant signals.
• Identify assets, showing the best retrospective performance. By comparing the realized return of two or more assets, you will be able to predict its future dynamics and make the most optimal choice for trading.
• Determine combinations of assets, characterized by stable behavior during economic instability. Such composite instruments will help to secure your funds from unexpected repeated shocks.
Trading on the basis of composite instruments will allow you to be one step ahead of other market participants. The uniqueness and diversity of composite instruments will give you a chance to identify new trading opportunities and develop unique trading strategies.
• Multiple increases in the number of trading opportunities through the creation of a wide variety of composite instruments will let you build strategies, about which you have not even suspected before.
• Look for opportunities to enter the market with whole combinations of assets - a composite approach is characterized by higher stability.
• Optimize and perform a periodic rebalancing of the created portfolio, changing the weights, adding or removing the assets in the overall structure.
• Exchange portfolios in the concept of “good and bad portfolio.” The maximum benefit from trading can be achieved if you can find a growing portfolio and take a long position on it, as well as falling portfolio and take a short position on it.
• Apply spread trading strategies based on the search for differences in price dynamics of similar instruments, trading strategies based on a long-term stable relationship between assets and hedge risks through building portfolios with certain sensitivity towards economic factors.