PCI GeWorko method instruction. Creation and trading of portfolio pairs
Trading a portfolio of assets on a stock exchange can sometimes be quite a laborious process. It is difficult to assess the profitability of your investment idea. GeWorko's PCI service helps you visually see a graph of your portfolio and trade the spread.
In a previous article We looked at creating a portfolio pair and trading examples. Now we will talk about the technical part of working with PCI GeWorko: how to create portfolio pairs, analyze charts, and trade.
Creating a synthetic tool in GeWorko
To create a new GeWorko PCI, right-click in the "Current Quotes" window of the NetTradeX terminal and select "Create GeWorko PCI" in the pop-up menu.
In the window that opens, you need to specify the assets that should be included in the base and quote part of the PCI. To do this, you need to find the assets you are interested in in the Available Assets list. Next, you need to specify the share of each asset to be included in the PCI. This can be done in one of three ways:
- In units of an asset in the "Volume" field
- As a percentage of the asset value (in USD) of the specified limit volume (USD) in the "Percentage" field
- In the "Volume [USD]" field of the asset value. Note that in Methods 2 and 3 the asset values in USD are taken at the moment of PCI creation.
In the example, let's set the assets of the base part (CFDs on several types of grain commodities) in equal percentages of the USD 100,000 limit value, and let's set the assets of the quote part in units of asset volume - 40 oz gold and 2,000 oz silver. To complete the creation of the new PCI, you will need to select a name and save the new instrument. If you select the "Save" option, the PCI will be saved under the name of the specified structure, including the names of its assets, but no more than 20 characters.
Select the "Save As" option and put "&grain/presious_met" in the "Name" field, then click the "Save" button. To finish the PCI creation, close the creation window with the "Close" button (you can choose the option with two actions "Close and add to tools in use").
One PCI can contain no more than 25 assets (in total in the basic and quotation parts). Up to 100 PCI can be created on one trading account. The number of PCI in the list of used instruments (for trading and charting) does not exceed 10 per workspace.
GeWorko tool display and analysis
With the NetTradeX trading and analysis platform, you can get the price history of any of your personal composite instruments, which will be updated in real time. The price history can be presented as different charts (bars, candlesticks and lines) on various timeframes. In order to open the price history graph of the created PCI you should:
- Add the PCI you are interested in to the list of used instruments. To do this, you can use the context menu in the "Current Quotes" window or select "Trade -> Instrument Directory..." in the main menu.
- In the "Tool Guide" window that opens, expand the list of created PCIs (by clicking on the "+" to the left of the "My Instruments" section). In the PCI list that opens, put a checkmark next to the new instrument. To add the selected PCI to the list of the used tools, click the "Add to used tools" button. Then close the window.
- After adding a PCI to the list of the instruments you are using, you will be able to display the price history graph of this instrument. To do that, find the added PCI in the "Current Quotes" window and right-click on its name. In the menu that will open, select the "Chart" item and indicate the timeframe you are interested in. All available graphical and computer analysis tools on the NetTradeX platform - trend lines, indicators, oscillators, shapes, etc. are available for chart analysis.
Trade created synthetic asset GeWorko
To make a deal with the created tool GeWorko, you can use the command "Deal" in the context menu in the windows "Current quotes", "Open positions", "Total open positions", "Orders", "Chart" or select the item "Trade => Deal" in the main menu. Let's choose the option of making a deal from the chart created earlier a simple personal instrument.
In the opened "Deal" window let's choose, for example, the volume of the deal equal to 10. Enter the number 10.00 in the "Volume" field and click the green "Buy" button - as a result a purchase operation of 10 units of the "&Nd100/PS500" instrument will be performed. This purchase command will trigger two operations with the components of this PCI.
The "Open Positions" window will show a line with Buy position for our PCI. If you click the "+" tag to the left of the PCI name below that line, the lines with the positions of all the PCI components for that transaction will open.
It is important that swaps on an open PCI position are calculated as the sum of swaps of all its components (on open positions of the instruments included in it). The margin for an open PCI position is calculated as the sum of the margin values of all its components. A created PCI can be traded only in the trading hours of all its components.
As you can see, creating a synthetic instrument is very easy and familiar to trade, while it opens up a lot of possibilities for spread, pair and portfolio trading. Many of your multi-currency and multi-instrumental tactics can be contained in one instrument and analyzed faster and more comfortably. Examples of such tactics can be seen below.
More about spread trading
- PCI GeWorko: trading a portfolio pair
- 3 in 1: How to Invest in the Crisis in Russia?
- Investment strategy for portfolio spread - trade 8 assets on one chart
The instruction is written simply and accessible, it remains to test in practice such a trade.
Be sure to give it a try. It's an unusual tool that gives a lot of room for ideas.
Not a bad tool to avoid unnecessary actions and, consequently, loss of time. In January, I will definitely try the PCI GeWorko method.
Interesting and convenient program that can greatly facilitate the work. At the level of intuition everything is clear, just a little practice.