Over time, forex traders desire to earn as many profits as possible, which leads them to automated trading. Besides increasing the profit potential of forex, automating trading activities avails more time for the trader to do other things. After all, you will not need to stay glued to the computer screen for long hours.
As you can guess, automated forex trading is on the rise. It is because algorithms are turning out to be better traders due to the absence of the psychological aspect. Also, delegating trading activities to a forex robot means that you can stay active in the market for 24/7. All you need to do is to acquire a VPS for forex to run all your expert advisors. A VPS is like a virtual replica of your computer that has reliable access to the internet, and close to 100% uptime.
Now that you desire to try your luck at automated FX trading, do you know the best platform for such an endeavour? Online forex trading is possible through trading platforms where MetaTrader is the most popular. However, individual forex brokers like Oanda offer proprietary trading platforms for their clients. Through these platforms, traders can automate their activities to better their chances of picking a profitable signal. If you were to choose between the MetaTrader platform and Oanda API for automated trading, which would you go for? For those of you who are clueless, read on for a description of both platforms.
Automated forex trading with MetaTrader
MetaTrader is almost every trader’s favourite trading platform because it is free to use. Besides, the platform is the easiest to use in the market. No wonder, majority of freshman traders download the software to begin their trading journey. Currently, there are two versions of MetaTrader that is MetaTrader 4 (MT4) and MetaTrader 5 (MT5). Both the UI and the UX of the MT platform are super fine.
Advantages of using MetaTrader for automated trading
One reason for the attractiveness of MetaTrader is the ease with which trader can automate their activities. In the first place, there is a huge variety of indicators that make the automation easy and straightforward. Besides, traders can download and install forex expert advisors on the platform easily. Besides, traders can customize and even test the reliability of the expert advisors using historical data.
Secondly, the MetaTrader platform comes with the MetaEditor through which users can write their FX expert advisors. Interested traders use Meta Quotes Language (MQL), which is similar to C#, to write that their EAs. Once ready, the EA can be tested using a wealth of historical data on the MetaTrader platform.
Thirdly, MetaTrader is a common platform used across the market by retail traders, institutional traders, and the world’s best forex traders. As such, you are likely to get assistance easily if your auto trading system is problematic. Interestingly, a considerable MetaTrader community exists that develops new products every single day.
Disadvantages of MetaTrader in automated forex trading
MetaTrader may be a popular platform in the forex market, but it places many restrictions on its use. As a result, the platform may be unsuitable for sophisticated traders. For example, expert traders have no choice but to use MQL to write their forex EA. The lack of choice implies that traders do not have the latitude to experiment beyond the limitations of MQL.
Additionally, the execution speed of the automated systems in MT is slow. It is because of the many hoops through which instructions must jump before execution. For instance, you cannot use external data, for example, price data, besides the one offered by the broker. This way, you may not be able to optimize your trading system as much as you would like.
Autotrading with Oanda API
Oanda is a forex broker with more than 20 years of experience in the market. The broker offers a proprietary trading platform that is free to use. Oanda is more popular with expert traders because it provides an application programming interface (API) feature that facilitates automated trading.
Advantages of automated trading using Oanda API
The most significant advantage of using Oanda API for auto trading is the freedom of choice that is available. In the first place, the trader gets to choose the language with which to write an algorithmic FX trading system. Unlike MetaTrader, where you are limited to MQL, Oanda API allows you to use Python, C, and even PHP to write the most optimized program. As such, traders can optimize their portfolio fully.
With an API, traders can create their indicators. Some of the best forex indicators that are available in MT4/5 may not appeal to you. Unfortunately, you have no choice but to use them that way. Luckily, the Oanda API allows the user to create custom indicators that cater to your needs. Besides, the flexibility of the platform enables traders to incorporate artificial intelligence algorithms in their trading strategies.
Disadvantages of Oanda API
Oanda API is not for beginner traders. The basic requirements of the platform are that users must be proficient in at least one of the supported programming languages. If a trader wants to learn how to use the API, the learning curve is quite steep.