Quantum Gomega AutoTrader

Posts Tagged ‘profit targets’

Decided to make a brief video showing Gomega Xray in action. Xray closed the week with a balance of $6980, just slightly off last weeks high. However to just look at the balance is somewhat misleading, as there are many trades that were still open at the close of trading for the week. 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 exit all the trades, this would would then be represented in the account balance.

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

In order to illustrate this point, I decided to plot the equity balance onto the account balance chart. Each red dot represents the current equity balance at the end of each week. The green line is a simple approximation of the equity curve. As the only equity balance data I have, comes from the detailed reports Metatrader has generated and I’ve only been generating those once per week. It would be great if there were a plugin for Metatrader that would log the equity balance at regular intervals and draw a nice graph at the push of a button.

You will notice that the red dots are not evenly spaced, 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 5th and 6th red dot from the left, is just 1 week. That was the week before last week, which was a very active week for Gomega Xray. It was during that week, that 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, as several trades are closed 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 see this effect, first hand. Which is what initially motivated me to make the video.

Click Here for my Gomega GBPJPY Review and Back Tests, Forward Tests and Live Results

Technorati Tags: demo account, equity vs account balance, forward testing, GOMEGA Xray, metatrader, profit targets

Here’s a quick update to my last post. In this Gomega GBPJPY video we can see a trade in action, Gomega GBPJPY has just entered a new long position in the Pound Yen. The point at which the trade was entered is indicated by the little green arrow, the dotted green line shows the buy price and the dotted red line is the current stop loss position. Gomega GBPJPY employs a intelligent stop loss algorithm, which it will move higher as the price approaches the profit target. It will also move it up if the price falls, so that this trade at the very minimum, break even.

For a thorough commentary of all the indicators displayed on the Gomega GBPJPY chart, I recommend watching the very thorough video walk through by Quantum Research, which can be found here Gomega GBPJPY Under the Hood. Although the chart is very detailed and looks rather overwhelming, all the complexity of the signal analysis, is taken care of automatically by Gomega GBPJPY. Not with standing, through the indicators on the chart, you have a window on the in depth analysis that is taking place in the background. Its kind of like the feeling you get when look under the bonnet of a high performance sports car.

Technorati Tags: forward testing, gomega gbpjpy review, gomega results, profit targets, trading pound yen, trailing stops