The back tests on Gomega are very good, however the live results are even better. I’m not much of a believer in back testing, simply due to the fact that the amount of data available for the EA to work on, is tiny at only around 1% to 2% of the original live data ticks. Even when using the 1 minute time frame for the data source, each tick is an average of the 50 to 100 ticks that would have existed in real time. In other words, back tests are a poor facsimile of live trading.
So how well did Gomega GBPJPY do in the back test? I ran the test across the same time period that we have live results for. Which is from October 5, 2008 thru to April 10, 2009. Beginning with an account size of $5000, the Gomega GBPJPY back test finished with a closing balance of $8174 which is a 63% gain. This compares very well with the live results from Gomega clients. Andreas Maeder’s account began live trading on Sept 2 2008 starting with a balance of $10,000. And by April 6, 2009, the account had reached $19,909.24. A gain of 99% in just 7 months. You can see Andreas, from Switzerland, talk about his experience trading with Gomega and the settings he uses for trading the GBPJPY. Sean Hummel ran a $5000 demo account over the same period which hit a closing balance of $14,608.67 by April 3, that’s a gain of 192%. And another client traded a live money account starting with $5000 beginning in October 5, 2005 and by April 10 was at $12,811.01 or a gain of 156%.
Here I’ve taken the back test result chart and superimposed it over the live result charts (Sean, Greg). I then color coded the balance curves so it would be easier to compare the results. The blue line is the live money account, the green line is the forward demo test and the orange line is the back test results.
You can find more information about the Gomega Pound Yen here GoMEGA GBP JPY Review.
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