Overview of the MetaTrader 5 terminal and differences from MT4

An overview of new opportunities for traders when working with the latest version of the MetaTrader 5 trading terminal, to which all brokers have already switched.

MetaTrader 5 (MetaTrader 5) is the most modern version of the platform. This version gives traders more options than MT4. Before switching to the 5th version of the terminal, it is advisable to understand the basic functionality and find out how it differs from the previous version of the software.

Comparison of MT4 and MT5 (table)

ConditionMetaTrader 4MetaTrader 5
Execution of ordersOnly completeFull or partial
Trade execution optionsComplete or cancelAll or Nothing, Partial or Cancellation, Refund
Types of pending orders46
Exchange volumesMissingSupported
CupNot supportedSupported
Number of preset indicators3038
Graphical analysis tools3144
Number of timeframes921
Strategy Testersingle-threadedSupports multithreading, you can test multicurrency Expert Advisors. Advanced Robot Optimization Options
Supported MarketsForexForex and Stock Market and Derivatives Market
Complete economic calendarMissingSupported
Programming languageMQL4MQL5

In addition to the previous modifications, MT5 bypasses MT4 in terms of design, and this is essential for brokers.

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For traders who work with multiple currencies, a multi-currency tester, more timeframes, depth of Market support, and the capability to work not just on Forex but, as well as stocks are essential. Based on these criteria the 5th edition of this terminal is better.

The biggest obstacle that slowed down the switch to MetaTrader4 to the most recent version was the sheer number of advisors and indicators created to work with MT4.

The issue is that both MQL4 and the MQL4 as well as the MQL5 languages are not compatible and required rewriting to accommodate the latest version of the platform.

Today, the database of Expert Advisors and indicators that are listed under the top five indicators has been updated and enlarged.

Another drawback in the past of MT5 was the inability of hedges – it was not possible to open multidirectional transactions with one instrument. This oversight was later rectified.

How do you work with MetaTrader 5?

MT5 provides a number of options to customize the look. Most frequently used tools can be displayed in the Quick Access Panel and menus that are not needed can be removed. Below is a short description of MT5 navigation, without any additional settings for appearance, this is what traders see following the installation and operation of MetaTrader 5.

  • To the left is the Market Watch/Navigator window. The first is an inventory of the instruments to trade (depending on the broker) and their specifications, there is also the option to make transactions with one mouse click (section “Trading”). In the Navigator is you will find a list of indicators as well as other tools. Here’s a link to the market, signals, and VPS. You can switch between accounts using Navigator.
  • In the upper area is the menus for the main functions that are reviewed below, as are the toolbars. In this tab, users are able to alter the chart’s type as well as timeframes. The most commonly used tools for graphic analysis are also available there.
  • The majority of the area is occupied by graphs themselves. The graph’s setting is further described below.
  • Below the graph is the “Tools” window. It provides information about the trader’s account as well as open trades. You can also keep track of information on incoming communications, news, and other events.

The place of the important elements is exactly the same for MT4. This makes it easier to switch to the latest version of MetaTrader. The location. navigation and the basic principle working with MetaTrader doesn’t change after changing to the most recent version.

Main menus

On the uppermost part of the terminal is a menu row Below is a short description of each:

  • File. It allows you to access the root folder or print a price graph or save it as a photo. There are also options to open the account of a new user, or join a new one. It is also possible to change between profiles, or open an unintentionally closed chart by clicking”New Chart “New chart” opens the chart for the instrument you want to use.
  • View. You can alter the language, add/ disable unnecessary toolbars and also allow the display of an order book.
  • Insert. In this menu, graphic objects (trend lines and levels texts, geometric shapes, and text labels) in addition to indicator tools and others can be added to the charts.
  • Graphics. All settings that pertain to price charts are available in this. You can alter the timeframes, and chart types and get an inventory of items added to the chart. You can also make the display of volumes visible via “Properties” you can access additional options.
  • One of the most beneficial functions is the capability to design templates. Templates are files with the extension tpl that store all the information regarding the design of the chart, as well as any scripts and indicators, included to it. You can define the desired settings at once you create a template, then apply it to any new asset which will save time.
  • Service. “New Order “New order” item opens an interface where all the details of the trade are determined and a trading request is transmitted. In the same menu, you can access the market, then to Signal service or task manager, and launch a new window that contains general options.
  • Window. The resolution is chosen and the style of the window display is also chosen (cascade horizontally, vertically, horizontally as well as a mosaic).
  • Help Access all the reference materials available as well as an online video tutorial for working with the terminal. In addition, using the menu you can determine the most current version of the software, and look for updates.

A few of the most sought-after items on the menu are duplicated with buttons. They can be found in the upper part of the chart. You can select to enable or disable auto trading. To do this, visit the market, and then open the complete list of available assets.

Utilizing charts

It is highly recommended to pick the best color scheme. The comfort of working will depend on it. To access the section for settings, hit F8 or click on Charts Properties. In the window with the parameters:

  • “General” is where you can find the “General” tab is responsible for the most basic options. It is recommended to select Japanese candlesticks as this is the most reliable alternative, as the line does not provide exactly the exact amount of details regarding the cost. It is also recommended not to play with other parameters.
  • Within the “Show” tab “Show” tab, the information displayed in the main window is set. It is possible to enable the grid display as well as tick and real labeling of objects Prices for Ask (only the price of Bid is shown in default). The upper-left part of the window, next to the chart, you will find buttons to work in one click. They can be disabled by clicking using the “Show” tab (or use the Alt + T keys to turn off).
  • Under the “Colors” section, an already-designed color scheme is picked or all colors are manually selected.

Once you have set it, it is recommended to create an initial template. After pressing RMB the menu will be opened, and in it you must select one of the options Templates Save Template and give it a name like default. If you select this option then all charts that will open following are going to have the same appearance. This will save time when setting up and is essential when working with many assets.

Making use of indicators and graphical analysis tools

In terms of technicality, concluding a deal is the easiest task to complete, the trader just must set the parameters and decide on the direction for trading. The most difficult part is the choice of the starting point.

MT5 offers traders a wide range of indicators that are pre-installed, as well as many instruments for graph analysis. Additionally, traders can independently install any software that are written in MQL5.

There are two methods to include an indicator

  1. With”Navigator “Navigator”, this window is situated on the left of the terminal. The desired indicator is moved by using the left mouse placed directly on the chart. A window with the indicator’s settings is displayed, and it’s left to click OK.
  2. By using through the Insert menu. For ease of use the indicators are organized into various categories. If an indicator isn’t placed in either of those categories it’s located under”Custom” section “Custom” section.

The indicator is also removed by two ways:

  1. RMB when you click on the indicator will display an option menu. It will include a selection for the option of deletion.
  2. When you use using the Ctrl + I combo and a list will pop up that includes all indicators that are added to the chart. After choosing the indicator you wish to delete you need to click “Delete”.

The graph analysis tools are added in line with the same principles:

  • On uppermost part of the platform is a quick-access panel featuring buttons that correspond to the most used tools for analysis. The panel is adjustable and the required objects are added, while unnecessary objects can be removed.
  • The option of adding objects using the “Insert” “Insert” menu also works.

To erase the object you want to delete, simply double-click it then delete it using by pressing the Del button. You can also access the list of objects added (shortcut Ctrl + B) Choose a specific object, and then click “Delete”.

In terms of the choice of a particular strategy, it’s impossible for us to respond with certainty. Certain traders employ strategies that counter-trend, while others make money when they work in the direction of trends, and some are trading in the range.

Closing of the deal and follow-up

There are two options for trading:

  1. With just one click. The transaction is not required for confirmation. In the lower left-hand corner are buttons for Sell and Buy you can select the amount and then click on the one you want to use. This is not a good option for those who are new to. It is generally accepted that this technique is not used as often, but it will save you some seconds. This is only useful to trade manually in an extremely volatile market, like after a press announcement.
  2. By using the “Order” menu, the essential aspects of the transaction can be established in it. Additionally, you can also make an order that is in limbo.

There are four methods to access”Order. “Order” menu:

  1. Button
  2. The toolbar has a similar button.
  3. RMB in the window that shows the chart and selects Trade – New Order.
  4. Within the “Service” menu, select the “New Order” item.

In the menu:

  • When you click on the “Symbol” field, the name of the asset will be shown, and the transaction will be completed on it.
  • Type – execution option by the market or waiting for the order. The first option relates to transactions “on the market”, which means that the transaction will be completed according to the price shown in the terminal. The second option is that you’ll need to choose an amount at which the trade will close only after the chart has reached this level.
  • Volume. It is represented in lots. 1 lot equals 100000 units in the currency of base (it is the first unit in the definition in the designation of the currency pair). To make it easier the lot will be automatically converted into foreign currency.
  • Stop Loss/Take Profit – the position in a protection order as well as an order-fixing profit. You can make them at any moment, you could, for instance making a deal, and only then decide on the positions of SL and the TP.
  • Comment can be an additional field that is not required. You are able to comment on the deal in the future, it could aid in the study on trade (it is much easier to locate the desired position within the document).
  • Deviation – A threshold price deviation is determined in points. This directly affects trading. If there is an extreme deviation, the likelihood of slippage or requotes is decreased. When processing the order, the quotes might alter, if they fall beyond the limits of Quote +Deviation, the transaction won’t be processed. There is a”requote,” the greater variance, the larger the acceptable range and, consequently, the less chance of leaving it during the process of the order.

After setting the parameters, it remains to click Sell or Buy. The order to conclude a transaction will be sent to the broker and will be executed in a split second.

If the SL and TP positions were not set at the time of the transaction, this can be done at any time. One of two methods is used:

  • With the left mouse button pressed, the market entry level is dragged in a losing (SL) or profitable (TP) direction. The size of the stop/take-in points and deposit currency is automatically recalculated.
  • Double-clicking on the line indicating the market entry-level opens a menu through which you can adjust the position of orders.

If stop and take were set when entering the market, then their position is corrected according to the same scheme.

The transaction can be closed by stopping or taking a profit – this is a standard scenario. But if these orders are not used or the forecast has been revised, then the position can also be closed manually.

For this:

  • You can right-click directly at the market entry-level and select the option to close the position.
  • The same can be done if you select a deal in the “Trade” window and click on “Close position” in the context menu. This option is more convenient if several trades are open – you do not need to switch between charts.

Tips for novice MT5 users

Templates and profiles save time

Templates allow you not to set up each graph separately. Profiles allow you to save the settings of all open charts, they can be saved to a USB flash drive and used, for example, on another PC.

Multi-currency testing of advisors should be provided at the stage of creating a robot

Multicurrency testing should be provided in the code of the trading advisor itself. This must be taken into account at the stage of writing a robot. Regular Expert Advisors cannot be tested in multi-currency mode.

Testing of advisors can be accelerated through the “cloud”

In MT5, you can rent the computing power of other traders and, due to this, speed up testing or optimization of the adviser by an order of magnitude. You can also work in mirror mode – provide the power of your PC to make money on it.

MQL4 and MQL5 are incompatible, this should be taken into account when switching to a new terminal

If the strategy uses custom indicators/scripts/experts, then before switching to MT5, you need to check the availability of the same tools in the new version of the terminal. If they are not there, then it is better to postpone the transition to MetaTrader 5.

Interesting on the topic:

You can use the built-in VPS

Through MT5 there is access to VPS with minimal delay. Prices are comparable to competitors, so you can not waste time looking for analogs.

The list of custom indicators/advisers is not limited to the market

There are significantly fewer indicators and advisers in the market than under MT4, but the base is not limited to this resource. Dozens, if not hundreds of indicators/EAs are available on third-party specialized resources.

The mobile version can be used as an addition to the desktop one.

Mobile MT5 does not replace the desktop 100% but can be used to track the state of the market at times when there is no access to the main working PC.

Signal services for MT4 and MT5 are separated

Both MetaTrader 4 and MetaTrader 5 have the ability to copy other traders’ signals. But they are isolated from each other, you cannot copy the signals of the MT4 signal provider to the MT5 account.

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