Most traders cannot afford to spend hours staring at charts on MT4 and analyzing trades. Instead, they choose auto trading. As the name suggests, auto trading refers to using bots or expert advisors to execute trades.
The bots rely on a set of preset rules that determine when to enter and exit trades. MT4 automated trading aims to execute trades faster and with more efficiency while preventing traders from making moves based on emotions.
How Does Auto Trading Work on MT4?
Most traders auto trade on MT4 by using expert advisors, also known as EAs. If you have never heard of EAs, they are trading robots that operate on a set of trading strategies.
Expert advisors are programmed using MQL4. When the preset conditions are met, the EA places a trade. EAs can analyze market data to identify opportunities, execute trades, and operate 24/7, which is perfect when trading synthetic indices.
How to Automate Trading in MT4
The most popular way of automating trades on MT4 is via expert advisors. You can download free or paid versions online or write custom scripts. If you choose to build a custom script, you must learn MQL4. You can use MT4’s built-in editor to write and compile custom EA scripts.
Always test your EA in a demo account before risking real money.
How to Set up Automated Trading MT4
For you to auto trade on MT4, you need to download or create an expert advisor. The file can come in two formats: .ex4 or .mq4. Ensure auto trading is on in your MT4 application so that the expert advisor can run.
Next, click on “file” on the menu and select “open data folder” to access the directory where your MT4 application is installed. There, find a folder called “MQL4,” and inside it, you will see another one called “experts.” Open it.
Copy and paste your ex4 or mq4 file into the folder. Restart the application, and you are good to start MT4 auto trading.
Why Traders Use MT4 Algo Trading
MT4 algo trading is popular among both new and experienced traders because of the following reasons.
- Access to Ready Expert Advisors
Experienced traders can build custom EAs based on their trading strategies. However, if you are a newbie, you can get your hands on free EAs from MT4’s developer community. You can use these tools to learn how to auto trade.
- Backtesting Capabilities
MT4 allows users to test expert advisors before using them in a live environment. This helps traders understand how a strategy might perform in various market conditions. In addition, they can refine it in a risk-free environment before risking real capital.
- 24/7 Trading
Trading while handling a full-time job can be tedious for many. MT4 automated trading allows traders to explore markets 24/7 and take advantage whenever a good opportunity arises. This is ideal if you are trading synthetic indices, where the markets run 24/7 all year round.
Summing up
MT4 auto trading offers beginners a powerful way to explore the markets and trade in a more effective way. Learning how to automate trading in MT4 is one of the many skills you need to master to take advantage of the markets whenever an opportunity arises.
Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.
