GeWorko Method A new stage in the development of portfolio analysis and trading
Advantages of the Method Create personal composite instruments (PCI) GeWorko from various financial asset Analyse price history of any created PCI GeWorko Predict the prices of PCI GeWorko through technical analysis Trade with your own PCI GeWorko (Soon)
What is GeWorko Method? GeWorko Method is an innovational approach to the study of financial markets and the analysis of their dynamics. It allows to create portfolios from a variety of financial assets, as well as to display the price of one portfolio relative to the price of another in a historical retrospective. The composition of portfolios is determined at the investor's discretion.
Personal Composite Instrument
Through GeWorko Method you will be able to create and analyse such instruments as:
SP500/DJI (1000*CHF + 1000*EUR)/XAU After creating a new PCI GeWorko you will at once get a graph of the price history and will be able to use a wide range of technical analysis tools available on the platform NetTradeX for predicting the prices of the created PCI GeWorko
Price history graph
Who Needs GeWorko Method? GeWorko Method has been developed for professionals in financial markets, who need additional analytical support while making deals.
Stock market traders
GeWorko Method Spread traders
In the nearest future you will be able to trade with unique PCI GeWorko having at your disposal unlimited possibilities to create your own trading instruments and to realize the most profitable strategies.
How Does GeWorko Method Work? The conception of the method is based on the price relation of one portfolio against the price of another. Both portfolios can be simple (e.g. EUR, XAU, SP500), as well as complex (consist of several simple one). For example, through GeWorko method you can create such instruments as:
Shows the price relation of 1contract on SP500 index against 1 contract on DJI index.
(1000*CHF + 1000*EUR)/XAU
Shows the price relation of a portfolio consisting of 1000USD and 1000EUR against 1 ounce of gold.
How Is PCI GeWorko Graph Built? In order to build a graph of any GeWorko instrument, the prices of two portfolios that are part of it are calculated in US dollars. Afterwards, a graph, reflecting the price relation of the first portfolio against the second one, is built in various time frames. For clarity, let us calculate the price of the following GeWorko instrument, which can be applied for risk diversification.
Shows price relation of a portfolio consisting of 0.5 ounces of gold and 1000CHF against 1 US dollar. We suppose that at the moment the following prices are formed in the market: 1 ounce of gold is priced in 1600 US dollars; 1CHF is priced in 0.9100 US dollars. Using the information about the current asset prices let us calculate the price of GeWorko instrument:
(0.5*1600 + 1000*0.91)/1 = 1710
After calculating the price of GeWorko instrument for each period of time we provide you with a graph, which you can use to search for hidden dependences in price fluctuations, as well as to predict the profitability of various portfolios.
Technical Analysis Tools In order to search for hidden dependences and to analyse the prices of GeWorko method you can use a wide range of technical analysis tools, available on the platform NetTradeX. Techical analysis tools are conditionally subdivided into Graphical objects and Indicators.
GRAPHICAL OBJECTS More than 20 graphical objects are realized on NetTradeX, which can be used for the technical analysis of PCI GeWorko. Few of them are presented below:
Technical Analysis Tools INDICATORS More than 25 indicators are realized on NetTradeX, which can be used to predict the price movements. Few of them are presented below:
To get more detailed information about graphical objects and indicators you can study the section “Graphics” in USER MANUAL NETTRADEX.
Appliance of GeWorko Method for Analysing Stock Portfolio against DJI Index The Composition of PCI GeWorko: A portfolio of 6 US stocks (20% DIS, 20% HD, 15% HON, 15% IBM, 10% KO and 20% MCD) against a portfolio of CFD on DJI index. The total price of two portfolios was the same at the moment of creating PCI GeWorko and was equal to 100.000 USD.
Through GeWorko Method you will be able to analyse the dynamics of the portfolio of stocks, possessing similar characteristics. In the current example we have studied 6 stocks, the recovery of which took place most rapidly after the crisis of 2008 or the prices of which the crisis influenced the least. It follows from the graph that the selected portfolio of stocks has shown a stable growth against DJI index since 2006.
How to Get an Access to GeWorko Method? In order to apply GeWorko method in practice, we offer you to use a new generation trading-analytical platform NetTradeX. With it you can: • Create your own PCI in an easy and fast way • Get the graph of their prices within seconds • Use a wide range of technical analysis tools for predicting the price of the created instruments
Open a demo account
Apply GeWorko method
You can learn how to use NetTradeX trading platform, as well as get instructions on the appliance of GeWorko method in the section “How to apply GeWorko method” in our website.
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Published on Jul 1, 2013
Published on Jul 1, 2013
GeWorko Method is an innovational approach to the study of financial markets and the analysis of their dynamics. It allows to create portfol...