GoMega Xray Forward Testing

Decided to make a quick video to show Gomega Xray in action. Xray closed the week with a balance of $6980.77, just a bit off last weeks high. However just looking at the balance is somewhat misleading, as it does not account for the many trades that are still open. I believe a more relevant number to look at, is the equity balance, this is currently up to $8059.24. After all, if I were to manually closed out all the positions then this would then be represented in the account balance.

Unfortunately the Metatrader platform doesn’t include the equity balance detailed report chart. Including this along with the account balance, would give a far better profile for the trading performance.

In order to illustrate my point, I’ve decided to plot onto the chart produced by Metatrader, the equity balance at the end of each week. Each red dot shows the end of week equity balance. The green line is a simple approximation of the equity curve. As the only equity balance data I have, comes from the detailed weekly reports Metatrader has generated and I’ve only been generating those at the end of each week. It would be great if a plugin were available for Metatrader that would log the equity balance and render a nice graph at the push of a button.

Notice that the red dots are not spaced evenly, this is because Metatrader plots the horizontal axis on a per closed trade scale, not on a constant time scale. So the distance between the dot 5 and 6 from the left, represents just one week. That was the week before last, which had been a very active week for Gomega Xray. During that week, the massive discrepancy between the account balance and equity balance became glaringly obvious. They were for much of the week moving in opposite directions, the account balance was declining yet the equity balance was generally significantly higher. Of course the account balance will see a decline, if trades are exited if the stop loss is hit, the equity balance includes all open trades, many of which are likely to be closing in on their profit targets. Of course when you have the software trading right in front of you, you can witness this phenomenon in action. Which is what initially motivated me to make the above video.

Also see my Gomega GBP JPY Review to see Gomega GBP JPY in action

Popularity: 65% [?]

Filed under: Forex Robots • GOmega • Long Term Trading

Like this post? Subscribe to my RSS feed and get loads more!