What is MetaTrader 4/5 (MT4/MT5)?

What is MetaTrader 4/5 (MT4/MT5)?

MetaTrader 4 and 5 are widely used forex trading platforms offering charting, order management, and automated strategy support. MT4 focuses on forex and CFDs, while MT5 adds multi-asset capabilities and faster backtesting.

Key Platform Features

• Custom indicators: Build or import technical tools using the MQL scripting language.
• Expert Advisors: Automate trade execution with EAs that follow rule-based logic.
• Marketplace ecosystem: Access thousands of indicators, strategies, and copy-trading signals.

Best Practices for MT4/5 Users

• Organize workspaces by strategy or asset class to streamline analysis.
• Run EAs on a reliable VPS to minimize downtime and connection issues.
• Use the strategy tester to validate ideas with historical data before risking capital.
• Keep platform software and plugins updated to patch security vulnerabilities.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.