Reasons Why Traders Use MetaTrader

As explained in the previous article here on the Trading Academy, the MetaTrader is the trading platform most traders are choose. Its beauty comes from the fact that it is easy to use and understand, while its performance is still unmatched; that is, among retail Forex traders who trade normal accounts. Large institutional investors, money managers, treasury departments in commercial banks, etc., have access to different trading platforms, but this is a totally different league when it comes to trading. Normal retail traders, like any regular Joe, will find out that MetaTrader is the platform offered by most Forex brokers. No matter what their trading experience, there is virtually no trader in the world who doesn’t know how to trade with the platform, or hasn’t heard about it.

Why Traders Choose MetaTrader

The MetaTrader platform comes in two versions: 4 and 5. Of the two, the one most used is MetaTrader 4, mainly because it allows hedging in the same trading account. The MetaTrader 5 platform is mostly popular among US traders, as brokers in that part of the world are forced to obey tougher regulation from the Security and Exchange Commission (SEC). Why is this trading platform the choice of so many traders? The following are some reasons why traders favour the MetaTrader:

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Easy to Use

Installing the trading platform and trading with it is extremely easy and straightforward. The broker offers the access information (trading account log-in information, such as account number and password) and the link for downloading it. The previous article showed how to log into the trading account, and once this is done, a whole new world of opportunities opens. The MetaTrader allows you to chart any currency pair, to export your charts and images, and much more.

Charting Made Easy

One of the biggest advantages of the MetaTrader is the range of charting possibilities it offers. Other trading platforms have a problem with charting, especially if one is using the Elliott Waves trading theory. Under the Elliott theory, the market moves in waves of different degrees. These waves must be labelled with either numbers or letters, depending on their nature (impulsive or corrective). However, placing those numbers and letters on any given chart is not that easy. The idea is to place them on a chart and for the analysis to stay there, and not to disappear in time. For that, the MetaTrader offers the Draw Text tool, as can be seen in the image below. This is the right tool to use for labelling a chart, rather than the Draw Text Label. The reason for this is that when using the Draw Text Label, if you switch to a different timeframe, the letters and numbers do not stay in the same place, and hence your Elliott Waves analysis is useless, as it disappears in time. The MetaTrader saves your work automatically when the trading platform is closed, without asking you. Then whenever the platform is opened again, the work can continue from the same point.
Reasons Why Traders Use MetaTrader - 1

Work Can Be Exported.

Perhaps the biggest benefit of MetaTrader is the fact that one can take its work and export and import it when switching brokers. Forex brokers offer the MetaTrader as the favourite trading platform, and switching brokers has never been easier. One can simply go onto the MetaTrader platform, click the File tab then the Open Data Folder tab. A pop-up window opens, and the Profile folder can be copied and saved anywhere on the PC. This Profile folder contains all the work and information related to the trading account. If the trader switches brokers, the content of this folder can be imported to the new MetaTrader account provided by the new broker.

MetaEditor

One of the great features on the MetaTrader platform is the MetaEditor. This is offered for free, and it allows traders to code their own trading strategy or indicator. For that, programming knowledge is required, but if the trader has none, it can be outsourced. The MetaEditor allows building of a new indicator or an expert advisor (a robot that will buy or sell a specific currency pair based on technical inputs).

History Back-Tester

This is a tool that helps to verify whether a specific trading strategy is working. For example, let’s assume one has a trading strategy that works well in the currency-trading environment. The next step to be taken is to automate the strategy, and the MetaEditor allows for a robot to be built. However, after this is done, we may know that the strategy works right now, but how about in the past? Would it have been profitable in the past too? Or is the current period just a random untypical period; and could the results be negative in the long run? For that, the history back-tester tool is used. Traders can select the period to be tested, the currency pair and the timeframe, and then create a report. That report shows the total number of trades taken in that period, their outcome, overall profitability, winning and losing trades, etc.; basically all the information needed. All of the inputs here are important, as not all currency pairs move in  the same way, and neither do  all timeframes show the same outcome.

Custom Indicators Can be Imported.

Not only can custom indicators be imported, but also expert advisors. This makes it extremely important, as it doesn’t restrict you to only creating them within your MetaTrader. Anyone can create a custom indicator or a trading robot and send it to you, and it can be imported onto the trading platform. Historical data can be imported as well. Just chose any currency pair and go on the monthly chart. For example, if you chose the GBP/USD pair and go on the monthly chart, you’ll find that the broker offers data only since the 1990s. What does that mean? That the GBP and USD did not exist before the 1990s? Of course not; it’s just that the data is not available. However, the MetaTrader allows you to import your own data in a specific file format, and once you do that, the charts are updated automatically.

Historical data is crucial for any analysis, especially when back-testing different trading strategies. The reasons listed in this articles are only a few, designed to show you why MetaTrader is so popular. There is virtually no limitation to technical analysis when using this trading platform, and the fact that it is so widespread and popular comes in handy when you have an issue with it. Simply Google the issue and you’ll find out the solution in a blink of an eye. This is exactly because so many traders use this trading platform.

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