Trading experts for FIX API MT4 and MT5: what is the difference?
Category : Robots
Today, a number of auxiliary tools for effective financial market analysis is available to any trader. Modified indicators, trading panels, and algorithmic systems are created, that can operate autonomously without trader’s participation. The latter category, represented by trading robots (also called Expert Advisors), gains more and more popularity every year.
Expert Advisor is an algorithmic trading consultor, which is able to analyze and perform transactions on FIX API Forex market in automatic mode. These trading experts, based on their code, make the transactions and independently record the result. An Expert Advisor analyzes the conditions for trade with the help of the trading system, which is essentially a piece of software code.
Today there are many trade experts, which can be divided into several categories:
- Trend experts (that trade on trend-based indicators);
- Scalping experts (that commit lots of trading operations in a single trading session, aiming to fix a few points of profit);
- Martingale experts (based on a building up positions in a non-profit operation to cut off the loss and earn on this motion);
- Grid advisors (commit buy and sell operations using the order grid, usually on the basis of set levels);
- Advisers that work with ready trading strategies (popular trading strategies for trading at Forex market also often get formalized as code to automate trade);
- News-based (experts written to work in the moment when news or strong macro indicators get published, which creates higher volatility);
- Copyright advisors (developed on the basis of individual trading strategies).
All these advisers are ideal for trading on both the FIX API MT4 platform, as well as MT5. The difference is that an advisor written for one platform cannot be used on the other one. It’s all in the code. MT5, as more recent software, supports the new programming language format MQL5, while at the same time, FIX API MT4 only supports MQL4. Therefore, advisors dedicated to the 4th platform won’t work on the 5th, and vice versa. It is worth noting that most advisers are now written for FIX API MT4, because the market only gradually turns to the new trading platform. These advisers have already gained their popularity and are fully optimized for use with the 4th Terminal.
But there’s no other conceptual difference between the two types of advisors. The core trading algorithm may be the same, while code features don’t play a key role. For example, trend-based advisors for both FIX API MT4 and MT5 will analyze the market by using trend indicators and then open transactions. Similar to the rest.
As you can see, Expert Advisor is a program that is designed for automated trading on the market. Use of this software is pretty simple. When purchasing or downloading the EA, you receive a file with the extension .ex4 or .ex5 depending on the version of the Metatrader trading terminal. For the successful operation of this program you do not need to install it, it is enough to just copy it to the root folder of the Terminal. Then the expert is ready to work. “Installation” process is the same for both versions of the platform.
Trade experts greatly simplify the trading process, thanks to the automated approach. Expert Advisor solves the problem of missing profitable market signals and facilitates FIX API trading to improve the financial result of the trading strategy. The use of algorithmic advisors allows to diversify the risks of “manual” trading.