What forex traders should actually know about MetaTrader 4

Why traders still pick MT4 over newer platforms

MetaQuotes stopped issuing new MT4 licences some time ago, pushing brokers toward MT5. Yet most retail forex traders stayed put. The reason is simple: MT4 does one thing well. A huge library of custom indicators, Expert Advisors, and community scripts were built for MT4. Switching to MT5 means porting that entire library, and most traders don't see the point.

I've tested MT4 and MT5 side by side, and the differences are marginal for most strategies. MT5 has a few extras like more timeframes and a built-in economic calendar, but chart functionality feels nearly identical. Unless you need MT5-specific features, MT4 still holds its own.

MT4 setup: what the manual doesn't tell you

Downloading and installing MT4 is the easy part. The part that trips people up is the setup after install. By default, MT4 loads with four charts squeezed onto a single workspace. Shut them all and start fresh with the instruments you follow.

Templates are worth setting up early. Configure your preferred indicators on one chart, then save it as a template. Then you can apply it to any new chart without redoing the work. Small thing, but over weeks it adds up.

Something most people miss: go to Tools > Options > Charts and enable "Show ask line." The default view is the bid price by default, which can make your entries look off by the spread amount.

How reliable is MT4 backtesting?

MT4's built-in strategy tester lets you run Expert Advisors against historical data. That said: the reliability of those results hinges on your tick data. Standard history data is not real tick data, meaning gaps between real data points are estimated using algorithms. If you're testing something beyond a rough sanity check, you need real tick data from a provider like Dukascopy.

Modelling quality tells you more than the headline profit number. Anything below 90% means the results aren't trustworthy. People occasionally show off backtests with 25% modelling quality and wonder why the EA fails in real conditions.

Backtesting is where MT4 earns its reputation, but the output is only useful with quality tick data.

MT4 indicators beyond the defaults

MT4 ships with 30 default technical indicators. The average trader uses maybe a handful. But the real depth is in community-made indicators written in MQL4. The MQL5 marketplace alone has over 2,000 options, spanning simple moving average variations to full trading dashboards.

Adding a custom indicator is simple: copy the .ex4 or .mq4 file into your MQL4/Indicators folder, refresh MT4, and the indicator shows up in the Navigator panel. One thing to watch is quality control. Community indicators official source range from excellent to broken. A few are well coded and maintained. Others are abandoned projects and may crash your terminal.

Before installing anything, check when it was last updated and if users report issues. Bad code doesn't only show wrong data — it can freeze your entire platform.

The MT4 risk controls you're probably not using

You'll find a few native risk management options that most traders don't bother with. The most useful is maximum deviation in the order window. This controls how much slippage is acceptable on market orders. Without this configured and the broker can fill you at whatever price the broker gives you.

Everyone knows about stop losses, but the trailing stop function are overlooked. Click on an open trade, pick Trailing Stop, and define a distance. Your stop loss adjusts when price moves your way. Doesn't work well in choppy markets, but on trending pairs it reduces the temptation to stare at the screen.

These settings take a minute to configure and they remove a lot of the emotional decision-making.

Expert Advisors — before you trust a robot with your money

EAs have obvious appeal: program your strategy and stop staring at charts. The reality is, most EAs lose money over any meaningful time period. The ones advertised with perfect backtest curves tend to be curve-fitted — they look great on historical data and fall apart once conditions shift.

None of this means all EAs are a waste of time. Certain traders develop personal EAs for specific, narrow tasks: entering at a specific time, managing position sizing, or exiting positions at fixed levels. That kind of automation are more reliable because they execute repetitive actions where you don't need interpretation.

If you're evaluating EAs, test on demo first for a minimum of two to three months. Forward testing tells you more than any backtest.

Using MT4 outside Windows

MT4 is a Windows application at heart. Running it on Mac deal with friction. Previously was Wine or PlayOnMac, which mostly worked but came with rendering issues and occasional crashes. Certain brokers now offer macOS versions wrapped around Wine under the hood, which is an improvement but remain wrappers at the end of the day.

The mobile apps, on both iPhone and Android, are genuinely useful for monitoring positions and managing trades on the move. Full analysis on a mobile device is pushing it, but closing a trade while away from your desk is worth having.

Look into whether your broker has a proper macOS version or just Wine under the hood — the experience varies a lot between the two.