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Part Three: Transitioning from MT4 to MT5

von | Jul 5, 2023 | Beginners, Evolving from an MT4 Algo Trader to an MT5 Quant Trader, Metatrader | 0 Kommentare

Hello again! As we continue our exploration from Algo Trading on MT4 to Quant Trading on MT5, it’s time to tackle the elephant in the room – the transition from MetaTrader 4 to MetaTrader 5. Here, we’ll highlight the key differences between the two platforms and why upgrading to MT5 can be beneficial for aspiring Quant Traders. We’ll also provide a step-by-step guide on how to transition smoothly.

Why Transition to MT5? While MT4 has been the go-to platform for retail traders, MT5 offers several enhancements that make it more suitable for advanced trading and Quant Trading. This includes a more sophisticated programming language (MQL5), enhanced strategy tester for multi-currency and multi-threaded backtesting, more timeframes, and improved order handling.

Key Differences Between MT4 and MT5 The following are some of the significant differences between the two platforms:

  1. Programming Language: While MT4 uses MQL4, MT5 operates with MQL5, which is more advanced and versatile. MQL5 allows for more sophisticated strategies and systems to be coded.
  2. Strategy Testing: MT5’s strategy tester is a significant improvement over MT4. It allows for multi-threaded backtesting and optimizations, letting you test your strategies faster and more thoroughly.
  3. Timeframes: MT4 provides 9 timeframes, whereas MT5 offers 21 timeframes. The more granular timeframes can provide more precise tuning of strategies.
  4. Order Handling: MT5 handles orders differently than MT4 and supports additional order types. It allows for a more flexible and comprehensive trading process.

Transitioning from MT4 to MT5: Step-by-step Guide

  1. Get Familiar with MT5: Before you begin the transition, spend some time exploring the MT5 platform. Notice the similarities and differences with MT4.
  2. Migrate Your Code: If you have custom EAs and indicators written in MQL4, you’ll need to rewrite them in MQL5 or hire a developer to do it for you.
  3. Backtest Your Strategies: Use MT5’s advanced strategy tester to backtest your strategies with the new code.
  4. Move Your Account: Once you’re comfortable with the new setup, it’s time to move your trading account to MT5. Many brokers offer the option to switch your account from MT4 to MT5.
  5. Start Trading: Once your account is set up, you’re ready to begin Quant Trading on MT5.

Transitioning from MT4 to MT5 is a significant step towards becoming a Quant Trader. In the next installment of this series, we’ll delve into the world of Quant Trading and how it differentiates from regular Algo Trading. Stay tuned!