MT5 Platform Download
Public testing of the new MT5 platform commenced on October 12th, 2009.
MetaTrader5 is the keenly anticipated new generation of the hugely successful MetaTrader4 dealing platform. MT5 is not just an upgrade to MT4. It has been fully reconstructed from scratch.
Here are the claimed features of Metatrader 5.
- 3 chart-types, 21 timeframes and over 70 analytical tools.
- Five order types and 4 execution modes available for trading.
- Implements almost any trading methods.
- Advanced in-built reports on all trading activities.
- Built-in indicators and graphical objects allows quicker analysis of quotes and trade decision making.
- High-performance and excellent speed MQL5 development environment with new IntellySence system and more sophisticated strategy tester.
As most of you’ll know, Metatrader 4 ( MT4 ) is the most generally used ‘off the shelf’ platform in the forex and CFD markets. It is expected that when MT5 is out of beta, it too will be widely used.
Today MT4 is the trading platform of choice for almost all foreign exchange EAs as well as custom indicators and scripts.
Unfortunately, the Metatrader4 language will not be compatible with MetaTrader 5 . To meet the incorporate the requested features and execution speed, a new object oriented programming language was developed. As a consequence, existing MT4 custom indicators and EAs ( .mq4 and .ex4 files ) will not work with MT5 platform.
You could be thinking that any new investment in MT4 custom indicators, scripts and robots is wasted. That is definitely not correct. MT5 is probably going to be in beta for at least 6 more months. The current Mt5 beta doesn’t even include a technique testing function. So it might be as long a year before any major MT5 robots become available.
Even when MT5 has matured into a stable trading platform, the surprisingly popular MT4, is still going to be supported by brokers for many years to come. If traders demand it, brokers will support it. You can expect many brokers will be supporting both platforms and there’s zilch to stop you running both MT4 and MT5 clients at the same time.
It is only a matter of time before a MT4/MT5 compatibility is developed. Most likely this can be in the form of a compatibility module or MT4 virtualization plugin for MT5. Rather than recoding every MT4 indicator and EA for MT5, it is just about certain that some clever programmers will code a virtual MT4 plugin platform for MT5. Very like the way you can now run Windows in a virtual machine on a Linux box or Linux within OS X.
Once a tool is developed to convert existing Expert aides and indictors from MT4 to MT5, then the uptake of the MT5 platform will occur more quickly.
Here is the official announcement about MQ4 and MQ5 compatibility:
‘From the start of Metatrader five development we presumed that we’ll be able to save the compatibility. And we claimed about it many times. But the numerous traders/developers requests made us change our mind. We’ve accepted that just cannot make a new language compatible. At the same time we have made MQL5 more powerful and in this way we gave you, traders and developers, more capabilities - that was our main goal in developing of MQL5 IDE. From one side, new language with the new abilities, and from the other side - MQL4 and MQL5 compatibility. Unfortunately, these 2 aims can’t be found at the same time.’ Interview with Metrader5 lead developer
The complaint frequently heard about MT4 is that this was built by programmers not traders. Definitely it was built with a focus on the front end and’client side’ instead of the brokers back office side. The platform itself developed from a price and info delivery terminal that became very popular with traders. Users then started to ask whether trading functions could be built into it. Metaquotes exploited the same architecture and added trading functionality to it, leading some to call MT4 a Frankenstein creation.
No Hedging and observance of the New NFA Rules.
Some may feel the NFA regulated currency exchange brokers are driving the MT5 development. Others are saying the MT5 position/order management is to the advantage of the brokers not the traders. Afterall, it’s the brokers who pay for the Metatrader platform.
To meet Forex industry standards, MT5 changes the entire core of position handling. From this point on MT5 traders will be in a position to keep only one position of any single trading instrument/currency pair. This reflection of orders aligns with the new FIFO ( first-in, first-out ) rule implemented by NFA as an industry standard in summer 2009.
Hedging at that point is eliminated and so is the separate management of two different in time orders on the same currency pair. Buying and Selling the same pair ( hedging strategy ) will end in zero positions being open.
For example : 9:00am Long GBP/USD 1 lot 1.3000, and later added 12:00pm Long GBP/USD 2 lots 1.3500, will be seen on Metatrader 5 account as one position’Long GBP/USD 3 lots’.
The first order to close is always the order that was initiated first, so it will always be the 8:00am Long position to close in our example above.
Is the FIFO and No Hedging a Show Stopper?
No individual orders listed, NO Hedging, and incompatible with anything MT4. Is this a step BACKWARDS?
If you like the way MT4 works for you now and or have made the move to a non NFA regulated broker then MT5 doesn’t look an extremely tasty prospect.
However there will be other instruments and charts accessible beyond currency exchange. Such as futures ( cfd-versions ) together with lots of option classes. Lots of chances for real-world hedging, ( i.e. Where the two instruments aren’t identical ) and for trading styles that are currently not possible. Like purchasing options on signals, instead of just going long or short the currency pair. Or making foreign exchange grids with options.
Some traders have claimed that FIFO ( first order in first order out ) prevents counter trend trading or joining in a quick scalp in the other way when you already have an open position. It does not have effects on your net position but it does affect the way you may manage your trades.
Correlation strategies are also an obvious alternative way to hedge. Hedging a position can be achieved by taking position in more than one correlated currency pair. And in MT5 this should be expanded to foreign exchange options and their underlying currencies or forex futures and their own options. Actually if you’re trading on more than one currency pair then currency correlations and their impact leverage and risk is something that must be well understood.
For more on currency correlation and how to apply it to your trading technique see Correlation Trading system
For more about the Correlation Code system at the Forex Correlation Code Platform
