The software you use for trading plays a key role in the overall trading experience and the trading results. Switching to a sophisticated trading platform can greatly affect trading performance. The MetaTrader 5 platform can be wise for upgrading your trading style using advanced tools and features. The MT5 platform is the latest edition of the classic MetaTrader that has become the world’s most preferred forex trading platform traders use globally. Today, we will teach you some powerful tips and tricks you can follow for trading better on the modern MT5 platform.
Introduction to MetaTrader 5
Many of you must be familiar with MetaTrader 5 as it is the superior successor of the traditional MetaTrader 4. The first version was launched in 2005, and MT5 was introduced 5 years later in 2010. Both platforms shared a similar interface and even had many common features and tools. But the developers added many additional features and tools to the updated version making it bigger and better to meet the requirements of new-age traders.
Let’s look at the basic features and tools you will get on the MT5 platform.
- Can trade a wide range of asset classes besides forex. This includes stocks, commodities, indices, cryptocurrencies, futures, options, ETFs, bonds and CFDs.
- 21 timeframes.
- 38 built-in indicators.
- 44 graphical objects for analysis.
- Uses advanced MQL5 programming language.
- Embedded MQL5 community chat.
- 6 pending order types.
- Partial order filling policy.
- More suitable for employing complex algo trading systems.
- Customisable charting tools.
- Better strategy tester.
- Can develop your own automated strategies or hire developers to do it on your behalf.
- MT5 is way faster than the predecessor MT4 and more stable.
- Available in desktop, web trader, as well as in mobile app versions, compatible with a number of operating systems and devices.
- Can subscribe to signal services.
- MT5 can also be used for social trading or copy trading.
- Virtual hosting services are available.
How to trade better on MT5? – Tips for Beginners
1-Start with Demo Trading – Whether you are a beginner or not, we suggest you start with demo trading on MT5 before anything else. You may have used MT4 or stepped into the markets for the first time with MT5 trading. In any case, you must take some time to learn about the platform and its features by practising in a risk-free environment. MT5 is more advanced than MT4 in many aspects and has many additional tools that add more complexity to the trading process. You should test them on a demo trading account first to avoid getting confused during live trading later on.
2-Use customisation options – The MT5 platform is highly customisable, from charts to user interface, everything can be customised to suit your requirements. You must use this feature to your advantage, as making the platform user-friendly is essential for a better trading experience and smooth trading process.
3-Create custom charts based on your requirements – For traders who rely on technical analysis, comprehensive charts are an inseparable part of the trading process. Thankfully the MT5 platform has a lot of options for modifying the charts as you get a lot of options for chart types and time frames that you prefer for analysis.
Along with this, you can also make changes to the chart properties by right-clicking on the chart and choosing properties. You can change chart colours by choosing one from the drop-down menu or entering the RGB code. You can switch between different time frames by using the periodicity table. The modified chart can also be saved as a template for future usage.
4-Use Autochartist – Autochartist is a charting plugin that can perform a detailed technical analysis as it provides ideal trade setups in real-time. This makes auto chartist a useful tool for traders of all levels, irrespective of their skill level and experience. With this tool, you will get built-in volatility tools and can even give timely alerts for emerging trends by tracking the formation of new chart patterns.
5-Use Ruler function – A ruler function is a great tool that you can use on the MT5 platform for displaying key data on the price charts themselves. Suppose you have some trend lines on the charts and want to know the size of the trend waves to assess their compatibility with your trading strategy, or you may want to know the precise points for placing your take profit or stop loss levels. By considering the ongoing trends, you may also want to know the number of pips for placing optimal take profit and stop loss orders. All these can be found by utilising the ruler function on the MT5 platform.
The ruler function can provide 3 types of data when you apply it to your charts: firstly, the number of bars or candles between the first and second point specified by you, the number of pips between these two points, thirdly it also displays the current market price of the trading instrument chosen by you. Knowing all this information allows you to analyse the charts like a pro and plan your trades in a better way.
6-Try compounding indicators – On the MT5 platform, you can compound different indicators for a better analysis. This way, you will get a clearer picture of the market situation and can determine precise entry and exit points for your trades
7-Use Trading Calculators – You can use trading calculators in MT5 to quickly and easily calculate various parameters related to trading, such as pip value, margin, and profit/loss. This will save you significant time, as you don’t have to calculate these parameters manually.
To sum it up, trading on the MT5 platform can give you a greater edge as a trader with all of the advanced tools and features that are available for free. But at the same time, it can make the trading process more complex for a newbie if they need more understanding of the tools employed for trading. So as a first-time MT5 user, you should use only some tools and features simultaneously. Take it slow and start trading with the basic tools first. Also, find time for practice on an MT5 demo account as you need to get used to the modern layout and interface, which might look intimidating for a fresher.