Comparing Metatrader MT4 with MT5

Metatrader is the software that we commonly use on fxdd. And for now there is Metatrader V.5.

Lets have a peek about that software compare with the previous version MT4. Because there is a new regulation about forex trading NFA, hedging is not allowed anymore. That rules make the MT5 is different that the previous version. The new “Position system” is completely different from what we ussualy watch from MT4.

This thing make a lot of argument because lots of trader think that this gonna make their trading cost so high except from commission and spread. Also lots of opinion thought that they gonna be only open 1 position per currency, it can make their profit so low. Because if they are already have the sell position, for example: USD/JPY for long term, they not allowed to make a buy position to handle short term movement.

But if learn more about this MT5, all of opinions is not exactly right, because of course with the different way but we can get the same profit and loss.
So, lets start comparing MT4 between MT5

Here is the Trading System for MT4

In August 10th, we set-in the sell position order with SELL USD/JPY @ 97.67 di terminal MT4.

In October 9th, We saw there is a good change for us to use the short term price without closing the first position. Than we set-in with buy position order BUY USD/JPY @ 88.59 di MT4.
Now we are in the same currency for buy and sell position, that is USD/JPY other say that we have HEDGING.
In October 27th, We realize that short term tren is timed up for that’s closing out short term, Our Buy position. Now we have to close the order position SELL USD/JPY @ 92.23. What we got is 364 pip from our buy position.
We pay 1 full spread from that close order position to open and close our buy position.
The first time Sell Position is is still continuing until 6 November with the price for @ 89.96, floating profit 781 pips. If we closing our position now, the total profit from that 2 positions is 1,141 pips.
We pay 2 full spread for the opening and closing.



Here is the Trading System for MT5

In August 10th, we set-in the sell position order with SELL USD/JPY @ 97.67 di terminal MT4.

In October 9th, We saw there is a good change for us to use the short term price. Than we set-in with buy position order to BUY USD/JPY @ 88.59. But without knowing the plus or minus we cannt do the hedge for MT5. So when we order BUY EUR/USD @88.59 di MT5, MT5 automaticaly set to closing order from our first position (SELL). The profit from that position is about 908 pip.
It pay 1 full spread from the closing order, for that opening and closing.
It a bit different for tha MT4 for the price short term movement we don’t have to set for any position, to make a change for the raise of short term tren (bullish counter trend). It because we alrady have take profit from the first sell to reduce loss bullish counter movement trend.
Now we do not have any position.
October 27th, we realize that the rasie of short term trend has over and has back to the long term price trend which is move down.
October 27th, we re-open our first sell position. We send order to SELL USD/JPY @ 92.23.
Until November 6th, the price for USD/JPY now is 89.96, our sell position floating profit 237 pips. If we close to our sell position, total profit is 1.145 pips from 2 trade positions that we’ve already close.
We pay 2 full spread for the opening and closing.



There is the same total profit from the two example between MT4 and MT5. thats 1.145 pips from 2 trade positions. If we look from the cost trading, we also pay for the same 2 full spread. Which make the different is just the positioning way and positioning system.

The truth is more profitable if we use the MT5 system trading because from the two example we don’t need to pay for the swap position buy from the MT4 (we don’t need to make a buy position in MT5).

From my survey polls: 53% from the respondents more likely using the MT4 trading system, and 10% respondents vote for using the MT5.

So what about you?
Please make comment and discussion from this article. Thank you.


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