Five reasons to trade with MT4
Education - | 11 Oct 2018
Experienced Forex traders are all too familiar with the MT4 platform, but for those new to the world of trading, it may be a term that appears shrouded in a degree of mystery.
Typically, a broker offering forex will provide one of two options, either their own proprietary trading system, or more likely access to “MT4” – the global benchmark when it comes to third party platforms, used by over 14 million traders worldwide and with a legacy dating back to 2005.
But what exactly is MT4, what has driven its massive popularity, and what do you need to know about it before getting involved? We run through five of the most important attributes of this successful platform:
MT4 lets you automate with ease.
A key benefit of trading with MT4 is the fact you can set your account to monitor the market and react automatically using any number of rules, from the most simple stop or limit order, to highly complex iterations. Many traders will be familiar with a platform’s ability to have a position closed out when a single condition is met, but sophisticated MT4 users can build a whole series of commands that can monitor any number of assets for specific targets to be filled.
MT4 lets you back test.
Back testing is the process of coming up with a trading strategy, then seeing how the market would have reacted historically. So, once you have devised your trading strategy with MT4, you don’t have to dive straight in but instead can simulate how your plan would have played out. You also have the ability to adjust the various parameters to see if performance could have been improved. Remember, although it’s good to beat the market every time, in reality you’re just looking to succeed more often than you fail. As always, past performance is no guarantee of future performance - but chartists and technical analysts certainly subscribe to this approach.
MT4 gives you the choice to build or buy.
For the technically minded, MT4 allows you to go out and build your own trading algorithm from scratch by using the formulaic script builder that is offered by Metaquotes, or alternatively you can download a pre-build script from the internet. Often, the more simple versions are available free of charge whilst others have to be paid for. If you can’t find exactly what you’re looking for on the internet, custom developers are also available to be commissioned to build a trading system to meet your precise needs. Obviously care must be taken to ensure that anyone you engage with has the ability to actually deliver the service you’ll be paying for.
MT4’s wide range of markets.
It’s worth remembering that MT4 is about more than just forex. Currencies, commodities and equity indices can all be traded on MT4, so you have the ability to swap between asset classes as the market – or your knowledge - evolves, but your trading margin is always being held in a single location.
MT4’s institutional approach to data
When you load up the MT4 trading platform it may not appear to have all the bells and whistles of some of its proprietary competitors, but what you get is the raw data that sophisticated traders need to structure a trade. If you want a news feed or a different charting package then you’re free to access this from another service provider on the internet, but MT4 gives you the ability to analyse how the market is moving and place the corresponding trade.
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