Maximize Your Forex Trading with MT4 (MT5) Automated Trading

Automated trading with MT4 (MT5) has become a powerful investment tool for FX traders. Using automated trading programs allows for efficient trading without being swayed by emotions. However, automated trading with MT4 (MT5) requires specialized knowledge and a proper environment, making preparation essential. This blog provides detailed explanations on everything from an overview of automated trading with MT4 (MT5) to setting up the operating environment and selecting recommended VPS services. If you are considering automated trading, please refer to this blog.

1. Overview and Features of MT4 (MT5) Automated Trading

MT4 (MT5) automated trading is a tool for automating FX transactions. This allows for rule-based trading without emotional influence, 24 hours a day, which can lead to different results from discretionary trading. In MT4 (MT5), the programs that enable automated trading are called “EAs (Expert Advisors).”

1.1 Key Points of Automated Trading Features

The automated trading features of MT4 (MT5) are multifunctional, and their key points include:
– Emotion-free Trading: Automated trading allows for calm trading as it is not influenced by human emotions.
– 24-hour Trading: With automated trading, you can trade 24 hours a day. This allows trading not only during active market hours but also during inactive times or while you are sleeping.
– Automatic Application of Trading Rules: Trading is performed based on rules you set yourself, preventing human errors and enabling data-driven trading.

1.2 EAs that Enable Automated Trading

MT4 (MT5) automated trading uses programs called “Expert Advisors (EAs).” You can create your own EAs or purchase commercial ones. However, in both cases, you need to install and set them up on MT4 (MT5).

1.3 Advanced Analytical Tools

MT4 (MT5) automated trading comes with advanced analytical tools. You can customize trading conditions using various technical indicators. Even without extensive knowledge of PCs or programming, it is relatively easy to get started. However, to maintain stable automated trading, it is necessary to build a proper operating environment and optimize the programs.

1.4 Trying Free EAs

When starting with MT4 (MT5) automated trading, it is recommended to try free EAs. By gaining actual experience, you can understand the advantages and key points of automated trading with MT4 (MT5).

Understand the overview and features of MT4 (MT5) automated trading and prepare to start automated trading. In the next chapter, we will discuss the operating environment and preparation for MT4 (MT5) automated trading in detail.

2. Operating Environment and Preparation for MT4 (MT5) Automated Trading

To start automated trading on an exchange, you need to secure a proper operating environment. Below are the steps to secure and prepare the operating environment for MT4 (MT5) automated trading.

2.1 Securing the Operating Environment for MT4 (MT5)

MT4 (MT5) automated trading can be done on a personal computer (PC) at home, but there are risks such as PC environment issues and power outages. Also, internet connection interruptions can be a problem.

To avoid these risks, it is recommended to use a Virtual Private Server (VPS) service. With a VPS service, MT4 (MT5) operates on a server managed by the service provider, allowing automated trading in a stable environment independent of your home PC.

Using a VPS service can reduce the operational risks of your home PC. However, since using a VPS service incurs costs, consider using it from the perspective of reducing the risks of automated trading.

2.2 Installing MT4 (MT5) and Introducing EAs

To operate MT4 (MT5), you first need to install MT4 (MT5) itself. You can install MT4 (MT5) by downloading the MT4 (MT5) installer from the trading company’s website or My Page and setting it up.

In addition, MT4 (MT5) allows automated trading using programs (EAs). EAs are programs that run on MT4 (MT5) with the extension ex4 (ex5). To introduce EAs to MT4 (MT5), select “Open Data Folder” from the “File” menu on the menu bar, and copy and paste the EA file into the Experts folder inside the MQL4 (MQL5) folder.

2.3 Preparation for MT4 Automated Trading

Once MT4 is installed and the EAs are introduced, you are ready for automated trading. However, it is important to perform the following procedures and tests before starting automated trading.

• Opening a trading account and linking it with MT4 (MT5)
• Setting up automated trading
• Conducting backtests and forward tests

First, you need to open a trading account to start automated trading. Complete the account opening procedure from the trading company’s website or My Page and link the account with MT4 (MT5).

Next, set up automated trading. Select “Expert Advisor” from the navigator window of MT4 (MT5) and drag and drop the automated trading program to the chart. Then, check “Allow automated trading” in the “Common” tab to complete the setup.

Furthermore, conduct backtests and forward tests to verify automated trading. Backtesting is a test that uses past chart data to verify the performance of automated trading programs, and forward testing is a test that uses actual market data to verify future performance. Through backtesting and forward testing, confirm the excellent performance of automated trading programs and explore optimal settings.

The above are the steps to secure and prepare the operating environment for MT4 (MT5) automated trading. By sequentially executing these steps, you can secure a stable operating environment and conduct effective automated trading. However, automated trading involves risks, so it is recommended to carefully prepare and consider before operation.

3. How to Choose Recommended VPS for MT4 (MT5) Automated Trading

To perform automated trading with MT4 (MT5), a dedicated VPS (Virtual Private Server) that operates 24 hours stably is required. Here are some points to consider when choosing a VPS suitable for MT4 (MT5) automated trading.

3.1 Pay Attention to VPS Costs

VPS costs vary depending on server specifications and capacity. The cheapest plans may not have enough memory capacity when running multiple automated trading programs. While it is important to keep costs down, it is essential to choose a VPS with the necessary features.

• VPS costs vary depending on server specifications and capacity.
• When running multiple automated trading programs, pay attention to memory capacity.

3.2 Balance of Memory Capacity and CPU Performance

When running multiple software simultaneously with MT4 (MT5) automated trading, appropriate memory capacity and a CPU suitable for parallel processing are required. There are three indicators for VPS server specifications, but memory capacity and CPU performance are particularly important.

• Memory Capacity: You need memory capacity according to the number of software running simultaneously.
• CPU Performance: A CPU suitable for parallel processing is required.

3.3 Check the System Monitoring Setup

For MT4 (MT5) to operate 24 hours on a VPS, server stability is crucial. Some VPS services have specialized technicians who perform maintenance and monitoring. Check the information about system monitoring before contracting a VPS.

• To ensure server stability, check the information on system monitoring.
• Choose services with operational experience in data centers.

3.4 Emphasize the Support System

For beginners who operate MT4 (MT5) on a VPS, the support system is an important factor. It is reassuring to receive support through chat or phone for operational methods and troubleshooting. Confirm the support system before using the VPS.

• For beginners, the support system is important.
• Check the support system before using the VPS.

Consider these points and choose a VPS that suits your MT4 (MT5) operational policy. Choosing the right VPS significantly affects the stable operation of MT4 (MT5) automated trading.

Reference: VPS Guide for FX Traders

4. Steps to Introduce EAs (Automated Trading Programs) to MT4 (MT5)

Below are the steps to introduce EAs (automated trading programs) to MT4 (MT5).

1. Launch MT4 (MT5) and Open the File Menu

Launch MT4 (MT5) and select “File” from the menu bar.

2. Open the Data Folder

After selecting “File,” click “Open Data Folder.”

3. Move to the Experts Folder

In the opened folder, navigate to “MQL4 (MQL5)” → “Experts.”

4. Copy the EA File

Select the “.ex4 (.ex5)” file of the automated trading program (EA) and copy it.

5. Paste into the Experts Folder

Paste the copied file into the “Experts” folder.

This will install the EA to MT4 (MT5), but it is not ready for use yet.

To use the EA, you need to close MT4 (MT5) and restart it. After restarting, the new EA should be added to the “Expert Advisor” in the navigator window.

The steps to introduce an EA to MT4 (MT5) are as follows. You can use EAs that you created yourself or those that you purchased. Creating your own requires specialized knowledge, but using EA creation tools can make it relatively easy to create EAs.

After introducing the EA, it is recommended to perform backtests and forward tests. This allows you to evaluate the performance and profit potential of the EA.

Automated trading programs (EAs) are important tools for achieving efficient trading with MT4 (MT5). Understand the steps to introduce EAs to MT4 (MT5) and effectively utilize automated trading programs.

Once you remember the steps, it becomes simple. Even for first-timers, following the steps will allow for smooth EA introduction. Find an EA that suits you and start automated trading with MT4 (MT5).

5. Key Points for Setting Up and Operating MT4 (MT5) Automated Trading

There are several key points for setting up and operating MT4 (MT5) automated trading. The following explains these points in detail.

Choosing and Setting Up Programs

In MT4 (MT5), EAs (Expert Advisors), which are programs for automated trading, are used. You can use self-created EAs or purchased EAs.

First, select the EA installed in MT4 (MT5). Choose from the EAs added to the “Expert Advisor” in the navigator window.

Proceed to the EA settings. You can specify the trading criteria, conditions, order types, etc., in the EA settings. Set appropriately according to your trading style and strategy.

Risk Management Settings

Risk management is important when performing automated trading. Since automated trading continues 24 hours, there is a possibility of significant damage if risks occur.

Risk management settings include trade lot size and stop loss settings. Perform appropriate risk management to minimize losses.

Conducting Backtests

Before starting automated trading, it is recommended to conduct backtests. Backtests use past data to evaluate the performance of the program.

Conducting backtests allows you to check the profit rate and winning rate of the program. Although different from real trading, it provides a rough estimate of the program’s effectiveness.

Monitoring and Adjustments

Even after starting automated trading, monitor the program’s performance and make adjustments as necessary. If problems arise during operation, corrections and optimizations are required.

When monitoring, check not only the charts but also the trading results and position management. Consider trade results and market fluctuations and make necessary adjustments.

Importance of Gaining Experience

Finally, gaining experience is important for successful automated trading with MT4 (MT5). While automated trading can be used by beginners, it is difficult to operate effectively without sufficient knowledge and experience.

Therefore, it is recommended to start with demo trading or small-scale operations and gain experience. As you get used to automated trading, gradually adjust the trading frequency and rules, and find an operating style that suits you.

These are the key points for setting up and operating MT4 (MT5) automated trading. Automated trading is a tool for efficient trading, and proper setup and operation are important. Gain experience and build a trading style that suits you.

Conclusion

MT4 (MT5) automated trading allows for rule-based trading without being influenced by emotions, making 24-hour trading possible and offering many advantages. However, automated trading also involves certain risks, so securing a proper operating environment, selecting and setting up EAs, and setting up risk management are essential. Additionally, it is important to evaluate the performance of automated trading programs through backtests and monitoring, and make necessary adjustments. By gaining experience, you can find an operating style that suits you. Prepare carefully and make the most of the benefits of automated trading.

Frequently Asked Questions

What are the features of MT4 (MT5) automated trading?

The features of MT4 (MT5) automated trading include the ability to trade 24 hours a day based on rules without being influenced by emotions, and achieving different results from discretionary trading. Automated trading allows for calm trading as it is not influenced by human emotions. Additionally, with 24-hour trading, trading can be performed automatically not only during active market hours but also during inactive times or while you are sleeping.

What do you need to start MT4 (MT5) automated trading?

To start MT4 (MT5) automated trading, you need to secure a proper operating environment and prepare. Using a Virtual Private Server (VPS) service can reduce the risks of your home PC. Additionally, you need to install MT4 (MT5), introduce EA (automated trading programs), open a trading account, set up automated trading, and conduct backtests and forward tests.

What are the recommended VPS for MT4 automated trading?

When choosing a VPS for MT4 (MT5) automated trading, consider points such as cost, balance of memory capacity and CPU performance, system monitoring setup, and support system. While it is good to keep costs down, it is important to choose a VPS with the necessary features. Ensuring an appropriate balance of memory capacity and CPU performance, server stability, and expert support are also important.

How do you introduce EA to MT4?

The steps to introduce EA to MT4 (MT5) are as follows. First, launch MT4 (MT5) and select “Open Data Folder” from the “File” menu. Then navigate to “MQL4 (MQL5)” → “Experts” folder. Copy the “.ex4 (.ex5)” file of the automated trading program (EA) and paste it into the Experts folder. This installs the EA, but you need to close and restart MT4 (MT5). After restarting, the new EA should be added to the “Expert Advisor” in the navigator window.