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:
- 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.
- 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.
- Timeframes: MT4 provides 9 timeframes, whereas MT5 offers 21 timeframes. The more granular timeframes can provide more precise tuning of strategies.
- 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
- Get Familiar with MT5: Before you begin the transition, spend some time exploring the MT5 platform. Notice the similarities and differences with MT4.
- 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.
- Backtest Your Strategies: Use MT5’s advanced strategy tester to backtest your strategies with the new code.
- 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.
- 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!