GoMega Xray Trading Action

Posted on May 31st, 2009

Just thought I’d make a quick video to show Gomega Xray in action. Xray ended the week with a balance of $6980, which is slightly off last weeks high. However just looking at the balance is somewhat misleading, as there are many trades that are still open. I believe the more relevant number to look at, is the current equity balance, which is now at $8059.24. Of course, if I were to manually closed out all the positions then this would would then be represented in the account balance.

It is unfortunate that the Metatrader platform isn’t able to include the equity balance in it’s chart for the detailed report. This, along with the account balance, would give a significantly better representation for the trading performance.

In order to illustrate this point, I decided to plot onto the chart produced by Metatrader, the equity balance at the end of each week. 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 weekly reports Metatrader has generated and I’ve only been producing those at the end of each week. It would be nice if a plugin were available for Metatrader that would log the equity balance and draw a nice graph at the push of a button.

You will notice 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 dot 5 and 6 from the left, is just one week. That was the week before last week, which was a very active week for Gomega Xray. During that week, the massive discrepency between the account balance and equity balance became abundently clear. While the account balance was in decline for much of the week, the equity balance was flux but generally rose. Which would suggest the equity balance is a fairly good indicator of the future account position. This also makes sense as the equity balance includes the current open trades, many of which are likely to be closing in on their profit targets. Of course with Xray trading right in front of you, you can see this effect, first hand. Which is what initially motivated me to make the video.