Forex Magic Machine

It was a challenging week for Gomega Xray forward tests and perhaps for many automated trading systems. Gomega has been trading a $5000 demo account at Alpari since April 21st, and it started 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. However this is not as bad as it may appear as its equity balance was at the same time 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 reason behind the string of losses in my view is Gomega Xray trades multiple currency pairs and one of the entry criteria is the cross currencies strength for each currency pair being traded. This is one of the factors that gives Gomega an edge when determining whether to enter a position. However this is a two edged sword. So when the market direction changes or goes against Gomega, Gomega will possibly have many little losses in a row as the stop losses are triggered. Of course the opposite is true when Gomega is on the correct side of a market swing, the result being many enormous wins in a row.

This is exactly 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 peaked 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. Perhaps a great oppurtunity for the dedicated manual trader? However regardless of this, Gomega was still in the trade on many positions since the start of the week and before. 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 ended the week with a balance of $7296 and equity of $7478. Overall that’s a gain of $2296 or 45% in less than 1 month.

While the weeks trading didn’t produce a pleasant smooth balance curve, the final 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 visualize the real progress of the trading through the week. 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.
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