The Forex Magic Machine

It was a challenging week for my installation of Gomega Xray and I am sure for most automated EAs. I’ve had Gomega Xray trading a $5000 demo account with Alpari since the 21st of April, and it commenced the week with a balance of $6188. During the week it took a number of successive loses drawing its account balance down to way under $6000. Yet at the same time its equity balance was hovering around $7000. So even though the results didn’t look so good at first, it was in a very good position overall.

Part of the explanation behind the string of losses in my judgment is Gomega Xray trades multiple currency pairs and one of the entry standards is the cross currencies strength for each of the pairs being traded. This is one of the many factors that gives Gomega an edge when determining whether to open a new trade. However this is a two edged sword. So if the market direction changes and goes against Gomega, Gomega will probably have many little 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 enormous wins in a row.

This is precisely how last weeks trading had been. Gomega found itself on the incorrect side of the market movement a few times as well as having some positions that were spiked out as a result of some 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 in spite of 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, though its balance was down.

By the Friday afternoon, Gomega had closed out many positions it had been holding and finished the week with a balance of $7296 and equity of $7478. That’s a gain of $2296 or 45% in less than 1 month.

While the weeks trading did not produce a pleasant smooth balance curve, the result is still really impressive. If only Metatrader were in a position to show an equity curve that included the equity balance, it would be simpler to visualise how the trading situation had progressed. Another limitation of the Metatrader charts 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 the Gomega Xray Forward Tests