So how well did Gomega GBPJPY do in the back test? I ran the test across the same time period as the live results. Which start from Oct 5, 2008 through 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 gain of 63%. This compares well to the live results from Gomega clients. One client began live trading on September 2 2008 starting with a balance of $10,000. And by April 6, 2009, the balance stood at $19,909.24. A gain of 99% for the 7 months. You can see Andreas, from Switzerland, talks about his Gomega settings for trading the Pound Yen. Another client traded with 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 Greg Surowiec traded a live money account starting on October 5th, 2005 and by April 10 was at $12,811.01 or a gain of 156%.

Here I’ve taken the chart from the back test 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 is the back test results.
You can find more information about the GOmega GBPJPY at GoMEGA Pound Yen Review.

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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 of the pairs being traded. This is one of the factors that gives Gomega an edge when determining whether to enter a trade. However it is a two edged sword. If the market direction changes and goes against Gomega, Gomega will likely have many tiny losses in a row as the stop losses are triggered. Naturally the opposite is true when Gomega is on the correct side of a market swing, the result being many giant 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 couple of times as well as some positions that were peaked out by major news events. Those news events without doubt had sent a cascade of stop losses rippling across the markets. Perhaps a great oppurtunity for a 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 throughout 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 one month.

While the weeks trading did not produce a pleasant smooth balance curve, the final result is still extremely inspiring. If only Metatrader were in a position to show an equity curve that included the equity balance, it would be better to visualise 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.
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