Gomega Xray Results for May 22nd 2009
Its been a challenging week for Gomega Xray forward tests and I am sure for many automated trading systems. Gomega has been trading a $5000 demo account at Alpari since the 21st of April, and it began the week with a balance of $6188. In the week it suffered a number of successive loses drawing its account balance down to well under $6000. Yet at the same time its equity balance was hovering around $7000. So on the one hand the results looked bad but at the same time it was in a very good position overall.
Part of the explanation behind the string of losses in my opinion is Gomega Xray trades multiple currency pairs and one of the entry standards is the cross currencies strength for each currency pair being traded. This is one of the factors that gives Gomega the edge when calculating whether to enter a new trade. However this is a 2 edged sword. So when the market direction changes or goes against Gomega, Gomega will likely 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 swing, the result being many big wins in a row.
This is precisely how last weeks trading had been. Gomega found itself on the other side of the market movement a few times as well as having some positions that were spiked out during major news events. Those news events without doubt had sent a cascade of stop losses rippling across the markets. Perhaps a great oppurtunity for the dedicated manual trader? However in spite of this, Gomega was still in the trade on many positions since the start of the week and earlier. And as the Euro continued to strengthen throughout the week, Gomega’s equity position continued to grow, though its balance was down.
By the end of the week, Gomega had closed out many positions it had been holding and ended 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 didn’t produce a nice smooth balance curve, the result is still very good. If only Metatrader were in a position to show an equity curve that encompassed the equity balance, it would be simpler to visualize the real progress of the trading through the week. Another limitation of the Metatrader charts are that the horizontal axis is constructed on a closing trades basis rather than a fixed unit of time. So the end result is a somewhat distorted view.
Keep up to date the GomegaGBPJPY Live Trading Results
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