Gomega GBPJPY Performs Better Live than in Back Tests

Posted on June 1st, 2009

The back tests on Gomega are very good but the live results are even better. I’m not much of a fan of back testing, mostly due to the fact that the amount of data available for the EA to work on, is minimal at just around 1% to 2% of the original live data ticks. Even when using the 1 minute time frame as the data source, each tick is just and average value based on the 50 to 100 ticks that may have existed in real time. In other words, back tests are no substitute to live trading.

So how well did Gomega GBPJPY perform in the back test? The test was run across the same time period that we have live results for. Which start from Oct 5th, 2008 through to April 10, 2009. Starting with an account size of $5000, the Gomega GBPJPY back test completed with a closing balance of $8174 or a 63% gain. This compares very well with the live results from Gomega clients. Andreas Maeder’s account began live trading on Sept 2nd 2008 starting with a balance of $10,000. And by April 6, 2009, the balance stood at $19,909.24. A gain of 99% in just 7 months. You can see Andreas, from Switzerland, talk about his experience trading with Gomega and the settings he uses for trading the Pound Yen. Another client ran 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 of $5000 beginning on October 5th, 2005 and by April 10 was at $12,811.01 or a gain of 156%.

Here I’ve taken the back test result chart and superimposed it over the live result charts (Sean, Greg). I’ve color coded the balance curves to make it 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 from the back test.
You can read more on the Gomega Pound Yen AutoTrader at Gomega GBPJPY Review.