Mastering MetaTrader 4: Tips and Tricks for Using the Forex Trading Platform

MetaTrader 4 (MT4) is one of the most popular trading platforms used by forex traders today. With its robust charting capabilities, customizability and automated trading options, it’s easy to see why MT4 is a favorite among retail and institutional traders alike.

In this comprehensive guide, we’ll cover everything you need to know to start mastering MetaTrader 4 for forex trading. You’ll learn tips and tricks for using MT4 effectively, optimizing your workspace, utilizing advanced order types, coding Expert Advisors and more. Whether you’re just starting out in forex trading or looking to enhance your skills, this guide will help take your MT4 platform to the next level.

Getting Started with MetaTrader 4

Downloading and Installing MT4

The first step is to download MetaTrader 4 on your desktop computer. MT4 is available directly from brokers that support the platform. Top MT4 brokers include Pepperstone, AxiTrader, IC Markets and XM.

Once you open an account with an MT4 broker, you can download the desktop platform directly from their website or by requesting the installation file from customer service. The MT4 mobile app is also available for iOS and Android devices to complement desktop trading.

Opening a Demo Account

Before you start trading live, it’s highly recommended to open a free MT4 demo account and practice trading on virtual funds. A demo account provides the exact same features and functionality as a real account, allowing you to become familiar with the platform until you’re confident to trade your own capital.

Most MT4 brokers provide demo accounts with virtual balances of $100,000 or more. Take your time exploring the platform and developing an effective trading strategy before going live. Demo trading allows you to gain experience with zero financial risk.

Navigating the MetaTrader 4 Interface

Once installed, open the MT4 platform and log into your demo account. The default workspace is divided into four main areas:

• Market Watch – Tracks real-time price movements for currency pairs and other instruments.
• Navigator – Lists all your accounts, indicators, Expert Advisors and more for easy access.
• Terminal – Where you monitor open positions, orders and account balance.
• Charts – View historical data and technical indicators for market analysis.

Familiarize yourself with the platform layout and practice performing basic trades. We’ll dig deeper into customizing your workspace later in this guide.

Configuring MetaTrader 4 for Forex Trading

To set up MT4 specifically for forex trading, there are a few important settings to adjust before placing your first live trade:

Enabling One-Click Trading

One-click trading allows you to instantly buy or sell any currency pair in your Market Watch window with a single mouse click. To enable:

1. Open the Options menu and go to the Trade tab.
2. Check the box next to “One-click trading”.
3. Adjust the max volume per click if desired.
4. Click “OK” to save your settings.

With one-click active, you can now execute trades faster from the Market Watch price grid.

Selecting a Base Currency

Your base currency is the account balance currency used as the base unit for all trading calculations in MT4. Standard choices include USD, EUR, GBP, JPY or AUD.

To set or change the base currency:

1. Go to Tools > Options > Currency.
2. Choose your preferred base currency from the options.
3. Click “OK” to update.

Matching your base currency to your home country currency minimizes conversion fees.

Configuring Trade Sizes and Lot Sizing

MT4 allows precise control over forex trade sizes and incremental lot sizing. To configure:

1. Go to Tools > Options > Trade.
2. Set volume in lots under “Volume by default”. 0.01 lots is micro, 0.1 is mini and 1.0 is a standard lot size.
3. Choose your preferred forex lot step size. For example 0.01, 0.02, 0.05, etc.
4. Click “OK” to save settings.

Adjusting these settings helps you scale into positions and manage risk appropriately on each trade. Start with micro lots as a beginner trader.

Previewing Spreads and Swap Rates

Knowing the spread and swap rates for each currency pair helps you calculate costs and account for financing fees when holding trades overnight:

1. Select a forex symbol in Market Watch and right click.
2. Choose “Specification” to view the Spread, Swap Long and Swap Short rates.
3. Click “OK” when finished.

Compare spreads across brokers to find the tightest variable spreads or lowest fixed commissions per trade.

With key settings optimized for forex, it’s time to dig in to using the full capabilities of MT4!

Customizing Your MetaTrader 4 Workspace

One advantage of MetaTrader 4 is the ability to fully customize the workspace to your personal preferences. Follow these tips for configuring your ideal trading environment:

Adjusting Color Schemes

MT4 includes built-in color schemes to instantly change the overall look and feel:

1. Select Tools > Options > Charts tab.
2. Choose your preferred color scheme from the dropdown menu.
3. Click “OK” to preview on your charts.

Try different schemes to find one that reduces eye strain without sacrificing readability.

Adding and Removing Market Watch Symbols

Reduce clutter by showing only relevant forex pairs in your Market Watch window:

1. Right click in Market Watch and choose “Symbols”.
2. Click “Show All” to view the full symbol list.
3. Select desired currency pairs and click “Hide” to remove unwanted symbols.
4. Re-order symbols by dragging and dropping rows.
5. Click “OK” to save.

Customizing your Market Watch allows one-click access to your preferred trading instruments. Try grouping related pairs together.

Configuring Your Terminal Window

Determine what data points are most important to view in the terminal:

• Right click and select “Hide All” to start with a blank window.
• Right click again and choose to “Show” P&L, account balance, open trades, history and other data.
• Resize columns or click and drag to re-order as desired.

A clean terminal window minimizes distractions and keeps the most relevant trade data up front.

Creating Multiple Chart Templates

Set up separate chart templates for technical versus fundamental analysis:

1. Style one chart with technical indicators, draw tools and studies as desired.
2. Right click the chart and save the template with a descriptive name.
3. Repeat for additional chart layouts and name accordingly.
4. When needed, just open a new chart and load the template.

Quickly switch between chart views to suit different trading approaches. Save templates often so new indicators are always available.

With a customized workspace, you can trade efficiently and concentrate on executing your plan.

Executing Trades Skillfully in MetaTrader 4

Executing trades accurately is critical to trading success. Master these skills for entering and exiting positions with precision:

Placing Market Orders

To open a new long or short position at the current market price:

1. Right click the desired currency pair in Market Watch.
2. Choose “New Order” then select “Buy” or “Sell”.
3. Adjust trade size in lots, add Stop Loss and Take Profit if desired.
4. Click “Sell” or “Buy”. Order is now open.

Practice placing market orders quickly to build confidence. Also test closing positions with the “Close” option.

Utilizing Pending Orders

Pending orders place trades automatically once price reaches your preset level:

• Buy Limit – Opens long trade at specified lower price.
• Buy Stop – Opens long trade when price exceeds level.
• Sell Limit – Opens short trade at specified higher price.
• Sell Stop – Opens short position when price drops below level.

Use pending orders to time entry and exit levels precisely. They trigger even when offline.

Partially Closing Positions

To close only part of an open trade:

1. Right click the position in the terminal and choose “Close By”.
2. Enter the portion to close as a percentage or fixed lot amount.
3. Click “Sell” or “Buy”.

The remainder stays open to allow running profits while de-risking trades.

Modifying Open Orders

Adjust existing entries and exits directly from your charts:

1. Select the open order from the terminal and drag onto the price chart.
2. Release the cursor and modify Stop Loss, Take Profit, or pending entry price.
3. Click “Modify” to save changes.

Quick order adjustments let you react to shifting market conditions.

With practice, you’ll quickly become adept at placing and adjusting MT4 trades with speed and accuracy.

Using Advanced Order Types

MT4 offers advanced order types to help traders manage risk and react to volatile markets:

Trailing Stops

A trailing stop automatically follows price by a set amount, locking in profits while minimizing losses:

1. Right click an open trade in terminal and select “Modify or Delete Order”.
2. Enable trailing stop and set stop level in pips.
3. Click “Modify” to activate.

As price moves favorably, the stop will adjust to secure profit. Closes trade if reversal occurs.

Break Even Stops

A break even stop moves your trade entry to breakeven once a specified amount of profit is reached:

1. Right click a position and choose “Modify or Delete Order”.
2. Check “Break Even” and enter desired profit amount to trigger.
3. Click “Modify”.

Eliminates losses should the market reverse right after hitting your profit target.

Close On Loss/Profit

You can close trades automatically if they reach preset profit or loss targets:

1. When placing or modifying an order, enable “Close By” option.
2. Choose profit target or max loss amount to trigger exit.
3. Click “Sell” or “Buy” to activate.

Automated closing removes emotion and ensures you stick to trading rules.

Experiment with advanced orders to refine your risk management strategy. Always use stops to protect open trades from excessive losses.

Analyzing Price Charts with Indicators and Studies

MetaTrader 4 provides over 30 technical indicators and chart studies to analyze the forex market:

Trend Indicators – Determine overall market direction using Moving Averages, Parabolic SAR, ADX and more.

Momentum Indicators – Gauge market sentiment with MACD, Stochastics, RSI and other oscillators.

Volume Indicators – Analyze trade activity using Accumulation/Distribution, Money Flow Index and On Balance Volume.

Bill Williams Indicators – Get trade signals from the Alligator, Awesome Oscillator and Fractals.

Drawing Objects – Mark up charts using lines, arrows, channels, Fibonacci retracements and more.

To add an indicator or study:

1. Click “Insert” above the chart and choose “Indicators” or “Objects”.
2. Select desired indicator or tool and click “Add”.
3. Apply to chart and customize settings as needed.

Combining indicators from different categories provides multiple perspectives on price action. Add only what enhances your trading style.

Automating Trading Strategies with Expert Advisors

Expert Advisors (EAs) are programs that allow you to automate your trading system in MT4 using the proprietary MQL programming language:

Benefits of EAs

• Automate technical or fundamental strategies
• Remove emotion from decision making
• Execute precise entries and exits 24/7
• Customize with indicators and parameters
• Backtest strategies on historical data

Creating EAs

While you can purchase pre-built EAs, learning to code your own gives full customization. Steps include:

1. Develop detailed trading rules for your strategy.
2. Outline trade signals, entry logic, risk management rules, position sizing and automation parameters.
3. Learn MQL syntax and programming concepts.
4. Code your EA in the MetaEditor using variables, functions, objects and workflow logic.
5. Backtest extensively to optimize EA settings.
6. Forward test on demo account before going live.

Programming even basic EAs requires dedication and coding knowledge. Join forums to learn from experienced coders. Consider hiring a freelancer for complex execution algorithms. With rigorous testing, EAs can automate proven trading strategies on MT4 24 hours a day.

Copy Trading with the Strategy Tester

For traders looking to copy profitable systems without coding, MT4 includes a Strategy Tester with copy trading functionality:

1. Download an EA or signal provider’s set files into the MetaTrader directory on your computer. Set files contain trade history and logic.
2. Open Strategy Tester and import the set file for the chosen trader or system.
3. Run backtesting or forward testing simulations against historical data to validate performance.
4. Once satisfied, enable automated trading by right clicking the set file and choosing “Attach to a chart”.
5. Trades will now be automatically copied according to the imported logic.

Always forward test for at least 3 months before committing real capital to ensure the strategy is consistently profitable.

Creating Trading Journals in MetaTrader 4

A trading journal is a crucial tool for tracking, reviewing and improving your performance in MT4. Follow these tips for keeping an effective journal:

Recording Trade Activity

• Note market conditions, catalysts, emotions and other insights from each trading session. Be honest about mistakes.
• Add screenshots to capture chart patterns and illustrate key moments.
• Export your full trade history regularly to avoid losing data.

Performance Analysis

• What was overall profit/loss per month and per trade? Measure against clear targets.
• Identify strengths like risk management or weaknesses like overtrading.
• Review losing trades in-depth. Determine where trading rules weren’t followed.

Process Refinement

• Adjust position size, stop loss levels or indicators based on results.
• Eliminate consistent flaws through trading rules that counteract them.
• Add new techniques or analyses that would boost performance.

Even basic trade notes, statistics and observations can help refine your process over time when journaling consistently.

Getting Help from the MetaTrader Community

With over 4 million users, MetaTrader 4 has one of the largest trading communities online:

• User Forums – Large forums like ForexFactory and ForexStation provide help with MT4 questions and issues. Experienced users are active in threads and discussions.
• MetaTrader Market – Download free custom indicators, EAs and scripts built by community members on the Market.
• MT4 Broker Support – Many brokers offer onboarding help and ongoing support for platform questions. Look for live chat, email and phone contact options.
• MT4 Developer Community – Connect with professional programmers and coders skilled in building EAs, indicators and software for MT4 users.

Don’t hesitate to leverage the MT4 community when troubleshooting challenges or wanting expert feedback on your trading progress.

Ready to Master MetaTrader 4?

As you can see, MetaTrader 4 provides an extensive feature set for forex traders who take the time to master it. From customizable workspaces and advanced orders to automated strategies and community support, MT4 can significantly enhance your trading.

By offering in-depth liquidity and capabilities not found on other platforms, it’s no wonder MT4 is consistently rated as the best forex trading software available. With the tips and guidance outlined in this guide, you now have all the resources needed to unlock the full potential of MT4 and elevate your trading skills.

Just remember that consistent practice, sound risk management and patience are prerequisites for trading success, no matter which platform you use. Keep developing your analysis, strategy planning and mental discipline – then let MT4 handle the execution.

Here’s to mastering MetaTrader 4 and achieving your financial goals! Your new trading journey awaits.