Algo trading or Algorithmic trading is an automated trading system where the traders and investors are made to trade according to the pre-programmed algorithmics and these algorithmics programs are capable of placing orders of trading stocks or security in a faster and more accurate way than humans because it is programmed and followed in algorithmic program. Algo trading helps in removing human interference and enables traders to find the best and most accurate opportunities in the market faster before any human trader identifies the opportunities.
Because of the human tendency to be emotional and very thoughtful, it takes them to take any decisions slow whereas, algo trading is not bonded with any emotional feelings so it takes accurate and fast decisions on trading of securities and stocks through algo trading. Occurring multiple transactions at once algo trading manages and it is programmed in a way to track and keep the transaction accurate and speed in trading.
Over the years algo trading has made its place in the market and has many options for algo trading software and MetaTrader 4 is one of them and it has created a wider audience. To train one’s skills in algo trading one must train oneself in robust educational resources to skill up and embed the knowledge of their in algo trading. The Internet is the best option to look for resources to get knowledge.
Moreover, there are trading software development companies which will help you with with algo trading platform. Automated Algo trading is one of the most loved and used and it is the strongest feature of MetaTrader 4, it allows you to develop, test, and help by applying expert advice and technical indicators while doing Algo trading. The best thing about Metatrader 4 Algo Trading is it removes any obstacles beforehand while doing analysis and trading activities.
About Metatrader 4 Algo Trading Platform
Metatrader 4 is an algo platform it has features of MQL4 IDE (Integrated Development Environment) which helps allow the trader to develop an expert advisor (trading robots) and technical indicators of any complex trading activities.MQL4 is an object-oriented programming language for trading strategies and development where it offers high efficiency, flexibility, and functionality. The built-in MetaEditor is designed in a way to develop the trading strategies for MQL4. It also has a debugger. Compilation is also performed in the editor. Later on, the application is automatically moved to MetaTrader 4 where it can be tested or optimized in the Strategy tester, which is yet another MQL4 IDE component.
The MetaTrader 4 platform runs trading applications, and therefore it is the last component of the environment. MetaTrader 4 Algo Trading gives you the broadest opportunities for the development of expert advisors and technical indicators where you can receive additional services allowing you to fully utilize your programming talents.
MetaTrader 4, also called MT4, is an advanced trading platform that specializes in allowing users to create and automate complex trades. Owned by MetaQuotes Software, it provides its users with a wide range of market indicators to use when doing any trade activities. It is very useful when making trade or contracts for differences and foreign exchange (forex) trading but can be used for a variety of different markets in algo trading. MetaTrader is free to download and use application. Financial advisors can help you understand in depth how to use the Metatrader 4 Algo trading platform.
MetaTrader was launched in 2005 and since then it has been an incredible and popular trading platform by traders approach. It was founded by MetaQuotes, a software company, Metatrader has multiple upgraded versions, with MetaTrader 4 being the most common.
Steps To Develop MetaTrader 4 Algo Trading App
Having discussed the benefits and features of Algo trading apps, now we will understand the Algo app development process.
Define The Scope Of Your Project
Algo trading app like MetaTrader 4 Once you decide to create an application for this trading system, the first thing you should do is plan the scope of your application development project and later discuss with your team the features and functionalities you want to implement in your application. Doing this will help you decide to develop an excellent trading application using the Auto trading platform. Custom software trading app services companies have various ideas to make your application a better trading experience.
Get your App Secured
Security in the digital world is a must as any personal information added to the internet is always a threat if we don’t secure it. You can not overlook the security feature of the Algo trading application since it contains sensitive information about the user’s account and all trading details. When you plan to develop the trading app, make sure you ensure all the security measures to keep your app safe and secure.
You can use cross-site scripting(XSS), bank-grade encryption, multi-factor authentication, next-gen firewalls, etc., to secure the application. You can take the help of a mobile app developer or hire a dedicated developer to get the security of your application.
Develop the Core Features
Designing and developing the core features of the application is the most significant part where you can develop the APIs for integrating core features of the algo trading application. Third-party APIs can also be used and in addition to it, non-core features such as push notifications or popups can also be implemented. Doing this will help you create the MetaTrader 4 Algo Trading app with an interactive user experience, good performance, and maximum security for traders.
Testing, Delivery, and Maintenance
Once you have developed and launched your Algo trading app in the market, you need to go for testing and maintenance of the app from time to time. This way, if you find any existing bugs and glitches, you can remove them with the help of your QA team.
MetaTrader 4: Services and Features
MetaTrader 4 is a complete trading platform, and it almost does provide all the necessary services needed to trade with all trading platforms. Seasonal traders will have an easier time taking advantage of all the platform has to offer, beginners should have a relatively easy time navigating the platform’s user interface.
While users won’t have access to live customer service, they’ll be able to use a wide range of educational resources and tutorials to help them understand the platform in its entirety and navigate through it easily. MetaTrader 4’s most useful feature is the ability for customers to automate their trades by programming custom indicators in MT4’s coding language. Metatrade algo platform is programmed to run in 30 different languages and gives you the option to copy the activity of other top traders also MT4 is well-known for being a forex trading platform where it can also be used for trades within other markets.
MetaTrader 4 doesn’t offer in-person financial advisors or any trading robo-advisor services but depending upon the brokerage you choose to partner with to use the MetaTrader 4 platform, you may be able to use additional features, such as live advisor support.
MetaTrader 4: Online and Mobile Experience
Using MetaTrader 4 on your desktop, you can download and run the software on any computer that runs Mac OS system, Windows, or Linux operators. Mobile app development companies provide mobile app services. They hire Android app developers and IOS developers for custom development of software for a better experience. You can also use MT4 on your IOS or Android mobile device by downloading the MetaTrader 4 app of the upgraded version. You should know that iOS devices need to run iOS 11.0 version or higher to run the software. The Android-compliant version, available on Google Play, has a rating that is higher than 4.5 for their software application.
Both the mobile app and desktop versions of the MetaTrader 4 software are exclusively high-rated and easy to use. If you want to take full advantage of other platform’s features you’ll need to work a bit, but it’s still possible to use both relatively easily.
Mobile app development companies provide you with good quality skilled mobile app development services for Android and IOS.
Benefits of MetaTrader 4 Algorithmic Trading
Algo trading is a platform that runs through algorithms and it does not have a human touch. Metatrader 4 is an automated trading system that removes emotional responses from humans throughout the whole trading process. By keeping emotions in check, the traders don’t let them cloud their judgment and stick to the plan. Once trade rules are met, trade is automatically executed, so there is no waste of time in waiting. This makes sure that trades happen at appropriate times and lessons both under or over-trading while giving you an opportunity for profit at every stage.
Capacity to Backtest:
Back trading is a trading method that uses historical market data to evaluate the viability of an idea. When designing a system for automated trade, all rules need to be clear-cut and accurate so that there is no room for mistakes in computers and it cannot make assumptions or any guesswork. This type of backtesting makes traders compatible with their systems and helps to figure out how profitable they would be overall.
To manage trading plans consistency is the base foundation. If a trading plan has the potential to become profitable, the traders who ignore these rules and alter this system will disrupt the market flow. The trading industry is an industry where you can either win or lose; you cannot expect success every time or failure. You must be prepared for failures /losses just as much as are prepared for success. Therefore, automated systems enable traders to maintain consistency with both their plans and their trades.
Algo trading/Automated trading makes sure that the trades are executed according to the parameters set and also eliminates the need for human error that could lead to loss. As trade rules are already established, and the implementation is automatic, traders maintain discipline even during uncontrolled situations in markets. Sometimes, discipline is lost because of the presence of emotional aspects such as a fear of risk or loss while trading in the market. However, automated trading reduces this possibility, so there will never be an incorrect/wrong order placed while trading.
Algorithmic Trading Basics: Key Takeaways and Top Advantages
Must-Have Features in MetaTrader 4 Algo Trading App
To develop excellent trading applications, you must consider the following essential features of Algo trading apps. Applying these features to your application will ensure your application is outstanding.
User Interface and Reports
The user interface of the application is one of the most important features of an algorithmic trading app like Metatrade 4. A good eye pleasant and easy-to-navigate UI should be made and easy to use application with clear instructions on how to set up a trade.
It should also offer an email notification system or popup notification and messages for anything relevant to the trading in the trader’s account, such as alerts about trades that have been executed or any account changes that have happened.
Reports are an important key component in a successful Algo trading app because these allow traders to review the performance of their algorithm against its benchmark index over various periods such as several weeks, months, and years.
Advanced Tools for Back-testing
While creating the Algo trade platform like Metatrader 4, you must be sure of the integration of advanced tools in the software. Advanced tools for backtesting will help you to ensure the profitability of traders in the market. Back-testing will allow you to test out different strategies with previous data and see what would happen if they were executed in the past and what would be the outcome. It gives traders an idea of which strategies would work better than others and how much risk would be involved in implementing them.
Active Triggers and Notifications
An important component of an Algo trading app is its notifications. MetaTrader 4 Algo trading apps are most often notifying the trader of various events, and active triggers in the application, and notifications will help you to know when something new has happened with your trades and account. Active triggers are targeted to anything from a change in market conditions or a major economic release. It is also important that your algo trading app notifies you via push/popup notification when certain events happen in the application. For example, if the price of a security/stock you hold has shown changes or if it hits an algorithmic buy point.
Broker and Market Data Adapters
To become a successful trader in an algo trading market, a trader needs access to the market activities. Here it means having reliable market data that is up-to-date and accurate details of the market. MetaTrader 4 Algo trading apps can help with this by providing adapters that connect traders with all the brokerages they need to do trade. Some adapters provide market data from a group of providers, such as Bloomberg Data, Thomson Reuters, and Dow Jones. This will help you have access to the data you need without needing to sign up for a new service.
High Availability and Performance
High availability and performance are the most impressive features of trading applications. Algo trading is robust and it works on an algorithm, which makes it a reliable system that can process multiple thousands of transactions per second because it can be designed and developed to use minimal memory in the hardware while processing lots of threads simultaneously.
Business Functions and Automation
As Algo trading applications fully function based on automation, traders and businesses can easily save lots of time to focus on core business. Custom software development services company will help in arranging dedicated developers to make your application a better experience.
Metatrader 4 Pros:
- Metatrader 4 can automate trades based on traders’ preferences.
- Metatrader 4 has created a demo instructions account available that helps the trader to use and execute automated trades with MetaTrader 4 with ease.
- As MetaTrader 4 has provided demo accounts there is less chance of direct customer support which leads to time-consuming problem-solving for traders.
- Metatrader 4 is not great for high-frequency trading.
Metatrader 4 is Best Used For
Metrader 4 is an automated algo trading platform and it helps in making trades in different currencies with the best convertible charges so it is best used for Forex traders in trading their stocks and securities.
It is best and widely used by experienced investors as it is easy to use and automated.
How much does the MetaTrader 4 Algo Trading App Cost?
It varies from each software development, or app development service you approach. However, in general terms, it would cost in range between $30,000 – $150,000 or even higher. Some additional services would cost additional charges as well for any customization you add to your application development.
New Tech Stack of Trading Software Development
Experience the improved potential of personalized stock trading app development customized to your business requirements. Partner with a well-organized trading software development company that uses a cross-platform technologies stack to develop incredible trading software to provide the best solutions to its traders. Here are some of the most popular technologies that we use in developing custom-friendly trading software:
- Blockchain Platforms
- Front-end Frameworks
- NFT Standards
- Cloud Platforms
- Storage Platforms
The blockchain platform is a decentralized digital ledgers that provide secure and transparent transactions across a circulated network. They produce a framework to develop and deploy decentralized applications (DApps) and smart agreements. Blockchain-based mobile trading app development services are delivered to leverage the security and translucency uses of blockchain technology.
Popular blockchain platforms involve Ethereum, utilized for programming and supporting smart contracts. Next is Hyperledger Fabric, producing enterprise-related blockchain solutions with modular architecture. The last is the Binance Smart Chain, which provides high throughput and low marketing fees for decentralized finance (DeFi) applications. These platforms allow developers to complete innovative solutions for varied industries, varying from finance and supply chain government to healthcare and gaming, simplifying trust and efficiency in digital exchanges.
Front-end frameworks are necessary tools for building modern web applications with improved user involvement and interconnective features. These frameworks, such as React.js, Angular, and Vue.js deliver developers with predefined features, foremost libraries, and tools to facilitate the development process and enable consistency across different browsers and devices.
Trading app development costs for Front-end Frameworks vary based on features and complexity, which overloads the budget of software development. They offer robust capabilities for managing the state, handling user input, and organizing application logic, enabling developers to create dynamic and responsive web integration efficiently. By leveraging a front-end framework, build trading app designers can also accelerate the development timeline durably, improve coding, and maintenance, and deliver eco-friendly user experience on the web.
NFT Standards represent the technical specifications and protocols for listening to the creativity, storage, and transformation of non-fungible tokens (NFTs) on blockchain networks. These standards enable interoperability and compatibility across different NFT platforms and marketplaces and enable seamless interaction and exchange of digital assets. These most commonly used NFT standards contain ERC-721 and ERC-1155 on the Ethereum blockchain, which form for token ownership, metadata storage, and token metadata, enabling consistency and uniformity in the NFT ecosystem. Adherence to these standards promotes trust, transparency, and efficiency in the burgeoning market for digital collectibles and unique investments.
Cloud Platforms deliver scalable and on-demand computerized resources over the internet. They provide various services such as computing power, storage, and networking, enabling businesses to rapidly scale their infrastructure according to demand without the need for further upfront investments in hardware. Popular cloud platforms such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP) provide a wide range of services, involving virtual machines, datasets, analytics, and device learning widgets. Cloud-based platforms are operated for automated trading software development services that provide decent scalability, reliability, and accessibility from anywhere with internet connectivity.
Storage Platforms mainly focus specifically on delivering efficient and realistic storage solutions for data management. These platforms offer features like data replication, backup, encryption, and accessible control to ensure data integrity and security. For Instance- storage platforms include Amazon, Google Cloud Storage, and Microsoft Azure Blob Storage. Algo trading app development company employs advanced storage platforms to provide efficient data management and analysis for optimal trading strategies.
What is the difference between MetaTrader 4 vs 5
MetaTrader 4 and MetaTrader 5 perform most of the similar basic functionality, but differences vary in the nuance of how you can utilize it to place an order. Algo trading applications for MetaTrader 4 and 5 offer advanced features for automated trading strategies in the forex market. Specifically, both MetaTrader 4 and 5 were developed for a similar purpose, but they both carry meaningful differences. Let’s delve into a profound explanation of MetaTrader 4 vs 5 dissimilarities:
Both MetaTrader 4 and MetaTrader 5 trading platforms work the algorithmic trading which is being employed by most forex traders. It not only automates the full trading process but also has another tool that makes the trader’s lifestyle easier. The most frequently used features such as order implementation, request undertaking, and many more things involved in this trading. Subsequently, MT5 carries an edge by having a trade commission and also buying/selling stop limiting additional features. Overall, algo trading software developers create automated systems for executing trading strategies in financial markets. Custom trading platform development company empower businesses to create innovative and robust trading solutions.
MetaTrader 4 and 5 have customized analytics delivery features for the traders. But the haul here we found is that MT5 has different timeframes with built-in clues and graphics-related objects, each of these elements is not available in MT4. On the other hand, acknowledging the improved functionalities, MT5 has other financial news updates that contain an in-built economic calendar which MT4 does not have. A financial community feature is also known in MT5 where traders can improvise in indications from the traders department. One of the equivalent features of both is an integral mailing system where traders can connect with brokers. Algo trading software development concerns incorporating robust analytics for informed trading decisions.
3. Risk Strategy:
Risk strategy is essential in trading application development services to mitigate potential failures and ensure optimal investment judgments. Holding a trade facility is very important and is available in both the MetaTrader 4 app and 5. It mitigates the capital risk involvement of trades. Therefore, forex trade settlements are simpler than MT4. Implementing a strong risk strategy evolves through the analysis of market situations, diversification of assets, setting risk toleration levels, and employing risk management tools such as stop-loss orders and hedging other techniques.
MT5 contains complex trading tools, whereas MT4 is a user-based trading platform. Many of the traders still use the MT4 platform. Still, in real-time MetaQuotes transfer the user integration better than as compared to MT5. Some of the major reasons behind the MT4’s popularity are the lower chart volumes, timeframes, and other trade assets. Most probably, Google Chrome supports MT4 and MT5 but MetaQuotes has been exhausted from the Apple ecosystem.
Notably, they are more accessible on Android, iOS, and other devices such as mobile, tablets, and computers. MetaTrader 4 developer helps in building custom trading software development algorithms and incorporating third-party plugins for progressive trading functionalities.
MetaQuotes Language is the programming language on which MT4 and MT5 are materialized. It is a well-customized language to make the trading experience eco-friendly. Traders can usually express the potential of both MTR and MT5 to book more profits. Both of these platforms are built on MQL4 and MQL5 respectively having digital trading platforms. However, this programming language is easy to use and understand. MT5 also has a back-testing feature due to which it gains a lead against MT4.
These features provide traders full freedom to evaluate their trading activity. In distinction to MetaTrader 4 and MetaTrader 5 has a multi-national strategy tester to boost the backtesting strategies peacefully. MetaTrader 4 software development cost depends on various aspects including programming requirements.
There were also four major trading servers- trade server, access server, history server, and backup server on which MetaTrader 5 performs. Whereas, the MetaTrader 4 function only on one server device. Overall, the MetaTrader 5 server performs in a more comprehensive and flexible trading environment for traders and brokers as compared to MetaTrader 4.
What is the Fee Structure of MetaTrader 4?
MetaTrader 4 demo account is free to download and use and you be able to test out the platform using virtual funds. While launching of the live account is a bit different from the demo account. Whereas, MetaTrader 4 Algo Trading platform makes money by selling software licenses to brokers, and the brokers partner with them to open their live accounts. So to start the process of opening your algo trading live account with MetaTrader 4, you have to select a brokerage and submit your application. Once a brokerage accepts your application, they’ll send you a user ID and a password so that you can start using the Algo trading platform with your own money.
The fee structure will be depending on the brokerage you select. The broker will determine the types of fees you’ll pay to use their platform and also how much the trades will cost, and any other fees if applicable. MetaTrader 4 Algo Trading isn’t cheap for brokerages. Each license includes an upfront fee of $100,000. On top of it, each brokerage will need to pay thousands of dollars per month for other selected services, like hosting the application, bridging, and support. Brokerages may offer different features, so make sure you do your research before deciding on one for your algo trading.
MetaTrader 4 is famous for its strong trading tools that appeal to expert investors. While it’s free to download, you can’t invest your own money unless you open an account with a brokerage that offers MT4. Its easy-to-use interface in conjunction with its programmable trading features makes it a strong choice for investors.
Nevina Infotech is a software development company and we can help you in developing an Algo trading app for you as we hire dedicated web app and mobile app developers for better convenience in developing apps and giving the best results.