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.

Technorati Tags: Back Tests, configuration, ea, Expert Advisors, gomega gbpjpy, gomega profits, gomega users, live results, live trading, metatrader

Unfortunately the Metatrader platform isn’t able to include the equity balance detailed report chart. This, along with the account balance, would provide a much better representation of the trading performance.

To illustrate this point, I’ve decided to plot onto the chart produced by Metatrader, the equity balance at the end of each week. Each red dot represents the current equity balance at the end of each week. The green line is simply to illustrate an approximate equity balance curve. As the only equity balance data I have, comes from the detailed weekly reports Metatrader has generated and I’ve only been producing those once per week. It would be nice if a plugin were available for Metatrader that could log the equity balance at regular intervals and draw a detailed graph at the click of a button.

Notice the red dots are not evenly spaced, as Metatrader plots the x axis on a per position closed scale, not on a linear time scale. So the distance between the 5th and 6th red dot from the left, is just one week. That was the week before last week, which was a very active week for Gomega Xray. During that week, the massive discrepancy between the account balance and the equity balance became glaringly obvious. They were for much of the week moving in opposite directions, the account balance was falling while the equity balance was generally rising. Which would suggest the equity balance is a fairly good indicator of the future account position. This also makes sense as the equity balance includes the current open positions, many of which are likely to be closing in on their profit targets. Of course with Xray trading right in front of you, you can witness this phenomenon in action. Which is what initially motivated me to make the latest video.

Also see my Gomega GBP JPY Review and Live Results

Technorati Tags: equity balance, gomega xray results, metatrader, profit targets, stop loss

Part of the explanation for the string of losses in my view is Gomega Xray trades multiple currency pairs and one of the entry factors is the cross currencies strength for each currency pair being traded. So when the market direction changes and goes against Gomega, Gomega will possibly have many tiny losses in a row as the stop losses are triggered. Of course the opposite is true when Gomega is on the right side of a market movement, the result being multiple enormous wins in a row.

This is exactly how last weeks trading had been. Gomega found itself on the wrong side of the market movement a few times as well as having some positions that were spiked out by major news events. Those news events without doubt had sent a cascade of stop losses rippling across the markets. Maybe a great oppurtunity for a dedicated manual trader? However notwithstanding this, Gomega was still in the trade on many positions since the beginning of the week and earlier. And as the Euro continued to strengthen during the week, Gomega’s equity position continued to grow, even though its balance was down.

By the end of the week, Gomega had closed out many positions it had been holding and finished the week with a balance of $7296 and equity of $7478. So that was a gain of $2296 or 45% in less than 1 month.

While the weeks trading did not produce a nice smooth balance curve, the end result is still really impressive. If Metatrader were able to show an equity curve that encompassed the equity balance, it would be better to visualize how the trading situation had progressed. Another limitation of the chart s produced by Metatrader are that the horizontal axis is constructed on a trade by trade basis rather than a fixed unit of time. So the end result is a somewhat distorted view.
Follow along with my latest Quantum Gomega Live Trading Results

Technorati Tags: equity positon, gomega forward tests, metatrader, trading results