MetaTrader5 (MT5) is the long awaited next generation of the hugely successful MetaTrader4 trading platform (MT4). MT5 is not just an upgrade to MT4. It has been completely rebuilt from scratch.

Here are the claimed features of Metatrader 5.

• 3 chart-types, 21 timeframes and over 70 analytical tools
• 5 order types and 4 execution modes available for trading
• Implements practically any trading strategies
• Advanced built-in reports on all trading activities;
• Built-in indicators and graphical objects
• Allows quicker analysis of quotes and trade decision making
• High performance and outstanding speed
• MQL5 development environment with new IntellySence system and more advanced strategy tester.

As most of you will know, Metatrader 4 (MT4) is the most widely used “off the shelf” platform in the Forex and CFD markets. It is expected therefore that when MT5 is out of beta, it too will be widely used.

Today MT4 is the trading platform of choice for virtually all Forex robots as well as custom indicators and scripts.

Unfortunately, the Metatrader4 language (MQL4) will not be compatible with MetaTrader 5 (MQL5). In order to meet the incorporate the requested features and execution speed, a new object oriented programming language was developed. As a result, existing MT4 custom indicators and EAs (.mq4 and .ex4 files) won’t work with MT5 platform.

You may be thinking that any new investment in MT4 custom indicators, scripts and robots is wasted. That is certainly not the case. MT5 is likely to be in beta for at least 6 more months. The current Mt5 beta doesn’t even include a strategy testing function. So it could be as long a year before any significant MT5 robots become available.

Even when MT5 has matured into a stable trading platform,  the amazingly popular MT4, is still going to be supported by brokers for many years to come. If traders demand it, brokers will support it. You can expect many brokers will be supporting both platforms and there is nothing to stop you running both MT4 and MT5 clients at the same time.

It is only a matter of time before a MT4/MT5 compatibility is developed. Most likely this will be in the form of a compatibility module or MT4 virtualization plugin for MT5. Rather than recoding every MT4 indicator and EA for MT5, it is almost certain that some clever programmers will code a virtual MT4 plugin platform for MT5. Much like the way you can now run Windows in a virtual machine on a Linux box or Linux inside of OS X.

Once a tool is developed to convert existing Expert Advisors and indictors from MT4 to MT5, then the uptake of the MT5 platform will occur more quickly.

Here is the official announcement about MQ4 and MQ5 compatibility:

“From the beginning of Metatrader 5 development we thought that we will be able to save the compatibility. And we said about it many times. But the numerous traders/developers requests made us change our mind. We’ve understood that just can’t make a new language compatible. At the same time we have made MQL5 more powerful and in this way we gave you, traders and developers, more abilities – that was our main goal in developing of MQL5 IDE. From one side, new language with the new abilities, and from the other side – MQL4 and MQL5 compatibility. Unfortunately, these two aims can’t be reached at the same time.” Interview with Metrader5 lead developer

The complaint often heard about MT4 is that it was built by programmers not traders. Certainly it was built with a focus on the front end and “client side” rather than the brokers back office side. The platform itself evolved from a price and data delivery terminal that became very popular with traders. Users then started to ask whether trading functions could be built into it. Metaquotes used the same architecture and added trading functionality to it, leading some to call MT4 a Frankenstein creation.

No Hedging and Compliance With the New NFA Rules.

Some may feel that the NFA regulated Forex brokers are driving the MT5 development. Others are saying the MT5 position/order management is to the benefit of the brokers not the traders. Afterall, it is the brokers who pay for the Metatrader platform.

To meet Forex industry standards, MT5 changes the entire core of position handling. From now on MT5 traders will be able to keep only one position of any single trading instrument/currency pair. This reflection of orders aligns with the new FIFO (first-in, first-out) rule implemented by NFA as an industry standard in summer 2009.

Hedging at this point is eliminated and so is the separate management of two different in time orders on the same currency pair. Buying and Selling the same pair (hedging strategy) will result in zero positions being open.

For example: 9:00am Long GBP/USD 1 lot @ 1.3000, and later added 12:00pm Long GBP/USD 2 lots @1.3500, will be seen on Metatrader 5 account as one position “Long GBP/USD 3 lots”.

The first order to close is always the order that was initiated first, so it’ll always be the 8:00am Long position to close in our example above.

Is the FIFO and No Hedging a  Show Stopper?

No individual orders listed, NO Hedging, and INCOMPATIBLE with anything MT4. Is this a step BACKWARDS?

If you like the way MT4 works for you now and or have made the move to a non NFA regulated broker then MT5 doesn’t look a very attractive prospect.

However there will be  other instruments and charts accessible beyond forex. Such as futures (cfd-versions) along with lots of option classes. Lots of opportunities for real-world hedging, (i.e. where the two instruments are NOT identical) and for trading styles that are currently impossible. Such as buying options on signals, instead of just going long or short the currency pair. Or constructing forex grids with options.

Some traders have said that FIFO (first order in first order out) prevents counter trend trading or engaging in a quick scalp in the opposite direction when you already have an open position. It doesn’t affect your net position but it does affect the way you must manage your trades.

Correlation strategies are also an obvious alternative way to hedge. Hedging a position  can be achieved by taking position in more than one correlated currency pair. And in MT5 this could be expanded to forex options and their  underlying currencies or forex futures and their own options. In fact if you are trading on more than one currency pair then currency correlations and their impact leverage and risk is something that needs to be well understood.

For more on currency correlation and how to apply it to your trading system, see Correlation Trading system

Here are a few Forex brokers offering the MT5 platform download and testing

• Broco
• Tadawul FX
• Tradeview Forex
• ODL Markets

Technorati Tags: CFD markets, correlation code, correlation trading, currency hedging, custom indicators, EA, expert advisors, FIFO, Forex markets, forex robot, metatrader5, mt4, MT4 MT5 compatibility, MT5 brokers, MT5 metatrader 4, MT5 platform, NFA rules, no hedging compliance, quick scalp, swing trading

It is good to see more and more Forex robot creators publishing live results rather than a set of back tests or screen shots. It was FapTurbo at the end of last year who broke new ground with their live results published directly on their sales page. In fact much of Fap Turbo’s claim to fame was that they were the first robot publishers to do so. Raising the bar for all Forex robots.

While it is great to have forex EA creators publish their own live results it still not so easy to compare one set of results to another. Which is why I am returning to my project to compare all the top forex robots in both live and back tests. This is going to be a major project and for this purpose I will be setting up a dedicated website at LiveMT4.com

2010 looks likely to be a roller-coaster year for the currency markets with plenty of FUD (Fear Uncertainty and Doubt) to fuel big currency movements. This is going to suit some trading methods better than others.

While many Forex robots can and do trade profitably most of the time. Automated trading is not for everyone. When real money is on the line, many people prefer to pull the trigger themselves but you have to know what you are doing.

Correlation Trading

My personal pick for best trading system for the year ahead would be Jason Fielder’s Correlation Code. Why? When the big swings occur, and they will, this is the best set of proprietary tools and methods I’ve seen for analyzing and trading on breaks in currency correlations. Knowing when and in which direction to trade and when not to trade is the difference between making good gains or wiping out your account.

Technorati Tags: correlation code, correlation trading, forex bling, forex hope, forex robot results, forex trading ea, jason fielder, live traind results, Thunderbolt ea results, thunderbolt robot

He goes on to say “I believe there may be a few left… we expect them to be gone VERY soon.”

He also says “We won’t be re-opening this time either, so this really is the final chance to get involved in what we are proud to say is the finest forex trading product we have ever brought out to the market.”

I’d say there is a good reason Forex Impact won’t be re-opening Correlation Code this time. That’s most likely because the Quad Charting software and strategies are almost ready for prime time. If so, then their next product will be the final release version of the Quad Charting software and a set of unique strategies to put it to full advantage. That is identifying and trading breaks in currency correlations.

We already know that the full Quad Charting pack and strategies are out of beta release, it is going to be selling for around $5,000. And it looks like it’ll be worth every cent even at that price. However currently, the Quad Charting pack is still officially in beta release and is included as a free bonus with for all Correlation Code members. Jason has also stated that all owners of the Quad Charting pack will be ungraded to the final release version free of charge. Hmm…

So the choice is get the Correlation Code and with the pre-release version of the Quad Charting Pack now and start correlation trading today or wait for the final release and hope that Jason decides to discount the price a little from the expected $4997. One thing is for sure, when the Quad Charting pack final release comes available, it will not be cheap.

Technorati Tags: correlation code, correlation code bonus, forex education, jason fielder, Quad Charting Pack

Why is Forex Impact giving away the Quad Charting Pack valued at $5000 as FREE Bonus with the Correlation Code?

Well if you attended the final webinar you would have heard Jason say that the Quad Charting software was still in beta release and the final release will be sometime in the near future. He went on to say that the Quad Charting pack was fully functional and the full final release version will be available free of charge to Correlation Code buyers as soon as the final release is ready.

Well it is pretty clear that correlating currency pairs and finding “cracks” in the code is a very powerful trading strategy. And the Quad Charting pack takes this one step further to create synthetic correlated pairs on a brand new Metatrader 4 chart.

What would be better than trading cracks and fundamental laws of correlated currency pairs?

Enter Metatrader 5 and the ability to chart commodity, futures, options and stock indicies all on the same platform. Now correlation trading takes on a whole new meaning. And the touted $5000 price tag of the Quad Charting Pack and strategies starts to look very reasonable if not an absolute steal. The first traders in the market using these tools are going to make an absolute killing before the hoards arrive.

Now I don’t know that the Quad Charting Pack is being developed to exploit Metatrader 5 which is in beta release right now. Just joining the dots. What is certain is by mid 2010 correlation trading across multiple currencies and indices is going to be massive. And the first tools to take advantage of the new Metatrader5 platform are going to cost an arm and a leg. Unless of course you get in early as a “beta” tester.

Here is what Forex Impact have to say about the Quad Charting Pack

“Quad Charting Pack: Value: $5000!”

“Our soon to be release software platform that “auto creates” synthetic correlated pairs (like the EUR/USD & GBP/USD ) and turns them into ONE chart to trade.”

“Instead of charting using two currencies (industry standard in Forex), we found a way to use FOUR currencies, which creates our own “synthetic pairs”, gives us a brand
new chart, and a brand new way to look at the market that NOBODY without this software is able to trade!!”

“This also includes it’s own complete strategy, and you can even run any
of your own strategies on it as well!”

“(This will released separately in the future and never again offered for free) and will revolutionize trading much like candles did when they were released.”

The doors have almost shut on the Correlation Code and there are literally only a handful left. While the Correlation Code may become available again sometime in the future, the Quad Charting Pack won’t be part of the deal. Sorry I didn’t figure this out sooner to let my regular readers know but better late than never.

Technorati Tags: commodities trading, correlation code, correlation trading, forex trading, futures, futures correlation trading, market correlations, metatrader 5, metatrader5, mt5, options trading, price correlations, Quad Charting Pack, quad charting software

Join the Final Correlation Code Webinar

With less than 100 copies left and time running out on to get on board the Correlation Code rocket ship. Jason Fielder is holding this one final webinar to really demonstrate exactly you what the Correlation Code will do for your trading and how the system works.

This webinar will be be focused on the actual performance of the Correlation Code system.

Jason will present his “1-2 Stack” system and explain exactly how he “stacks” different trades on top of each other to “Supercharge” his performance (remember some of his trades are over 90% accurate).

Jason has just recorded a new video where he shows you some recent performance with his “Follow The Leader” strategy just to give you a taste of what you can expect. Follow the Leader Strategy
As soon as you register for the webinar you will be redirected to the video, so make sure to enter your email, even if you can’t make it, at least that way you’ll get to see his latest correlation trades.

Watch this video where he outlines how to make 160+ pips on average each month with a simple-yet-powerful trend system based on his completely unique Synthetic Pair system!

You really have to see it to believe it.

There’s simply no other way to describe what looking at two pairs instead of one, AND having “Fundamental Law” on your
side every time, can do for you.

Join the Final Correlation Code Webinar

Technorati Tags: correlation code, correlation code webinar, correlation trend, corretrend, Follow the Leader, fundamental law, jason fielder, Synthetic Pairs

Jason Fielder scalped 20 pips today using correlation, and he simply HAD to do a video on it showing yet another powerful way that correlation trading can help you become a more profitable trader with crazy accuracy.

He was able to pull out 20+ pips using this simple strategy, which literally lets you enhance a typical trade using correlation, and in doing so, pay less to your broker in spreads!  Not only that, but this strategy allows you to get into your trades EARLIER.

Watch this video for further explanation, and keep your eyes open for more videos just like this to come soon!

Technorati Tags: correlation code, correlation secret, correlation secret report, curency correlation, forex education video, forex training, jason fielder