Tips for Using MT4 Trading Tools to Increase Efficiency

By: S_N_Chatterjee

The current uncertain environment demands traders to continue using efficient trading software and one of the suitable solutions available is MetaTrader 4. Packed with tools and features, it can help users make well-informed decisions, now that global stock markets are unnerved by fears over growth.

Because of that, this material plans to share 4 insightful tips that could help retail traders using MT4 leverage the full benefits granted by this platform. Regardless of prior background, these pieces of advice apply to anyone.

#1 Don’t overcrowd charts

One of the first mistakes made by beginners when using the MT4 platform is plotting a variety of indicators all at once. The mindset behind it is that by using more indicators, they will be able to remove all the false signals and increase their accuracy.

In order to be successful when trading, one does not necessarily have to be highly accurate. In fact, even with high accuracy, traders can end up losing in the long run, without proper risk management. There is no maximum number of indicators that should be used, but the point is to use them in such a way that the price action details will remain visible.

#2 Backtest and run trading simulation

When using MT4, traders have access to new indicators. Numerous EAs are developed, yet that does not guarantee success. Integrating a new tool into the trading strategy should not be done right away. Traders need to test it in demo mode, use trading simulators, and run backtesting, before starting to trade on a live account.

That happens to understand the indicator inside-out, when it is efficient and when not, what type of risk management system should be used, and other critical factors that need to be accounted for.

#3 Combine lagging with leading indicators

A combination of lagging indicators (like moving averages) and leading indicators (oscillators) seems to be working better, given each category comes with both strengths and weaknesses. Although there are still retail traders relying on moving averages crosses, they end up entering or exiting the market late, sacrificing their bottom line.

Trading is all about managing to work with probabilities and anticipate what is going to happen before it does. It is not easy and the recent US dollar bullish developments are showing that given the consensus at the beginning of 2021 was tilted towards USD weakness.

#4  Develop and save templates

Each asset has a unique behavior and that is why retail traders will sometimes need to use multiple strategies as part of their daily routine. The MT4 platform lets them create and save templates. This is important to use since the trader is no longer needed to delete and plot new indicators each time he switches between assets.

FX, stocks, and commodities remain active for the time being and all of the MT4 tips shared today can be useful in such an environment. This is not all the work a trader should do, but it ensures a higher efficiency when using one of the popular platforms in the market.

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Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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