Amibroker vs MT4 Charting

Several types of trading analysis software are being used in the trading of financial instruments, including forex. The software comes pre-loaded with technical analysis and scripting features that allow users to create their own trading strategies and indicators, besides allowing automation of strategies. Some of the popular options include the MetaTrader software, Amibroker and Ninjatrader. All of them offer a reasonably good package of charting tools which are simple to use and quite user friendly, but a choice between them will depend on an individual trader’s preference and the instrument a trader wishes to trade in.

Charting Software and Their Features

Amibroker

Amibroker is a leading charting tool that was built especially for traders using technical analysis to predict price and volume of stocks in the market, but it is now also being used for forex trading. This software allows users to create detailed graphs of the stock price and volume, and then carry out an analysis of the same. It uses AFL or Amibroker Formula Language to create indicators and logic on the platform. Although this programme was mainly designed for historical data analysis, many traders use it for algorithmic trading too.

Amibroker is ideal for trading stocks and performing custom researches. The main features of this software are:

• Flexible and navigable user interface that can be arranged according to the individual user’s preference.
• Charts that are presented in beautiful styles and come with an option of easy modification of parameters.
• Its database stores historical data and builds up useful information. It also allows users to back test their strategies using historical data.
• The software uses multiple timeframes, including yearly, quarterly, monthly, weekly and daily charts, Intraday charts, N-minute charts, N-second charts, N-tick charts, N-range bars, N-volume bars, etc.
• It comes with unlimited drawing tools, drag and drop tools and timeframes, as well as in-built indicators.
• Users can create their own trading systems and write their technical analysis formulae.
• Multiple windows, panes, scales, intervals are possible at the same time, and can be scrolled/zoomed super-fast, thanks to multithreaded execution and rendering features.
• It can automate a trader’s routine via its integrated batch processor.

MetaTrader

MetaTrader is primarily used for automated trading and is highly popular amongst traders dealing in currencies. More than 90% of forex traders around the world use this charting software for its direct live data server connectivity and easy to use interface. This software uses MQL scripts (similar to C/C++ programmes) and is available in two versions, MT4 and MT5. Most forex brokers use MT4 because of its powerful features, such as auto trading, and an array of indicators useful for carrying out forex trading.

Developed by MetaQuotes Software, MT4 is provided to traders by their brokers. This software comprises two components, a server component and a client component. While the former remains with the broker, the latter allows customers to place orders and manage their accounts by watching live streaming prices and charts. Some important features of this software are:

• MT4’s scripting language helps traders to create Expert Advisors, Custom Indicators and Scripts that are highly useful for automated trading and implementation of trading strategies.
• The platform supports three trade execution modes, including Instant Execution, as well as 2 market, 4 pending and 2 stop orders, and a trailing stop function.
• Its quick trading features allows traders to send orders straight from the chart with one click.
• The built-in tick chart feature provides an accurate method for determining entry and exit points.
• It supports nine timeframes, allowing traders to see price dynamics in detail.
• It comes with 30 built-in technical indicators and 24 graphic objects for the most comprehensive analysis.
• MT4 allows users to change the colours and styles of charts, besides setting templates according to their personal preferences.
• Designed to support all currency crosses, commodities, futures and equities trading, this software is highly secure.

Looking at the excellent features of these two charting softwares, it may be a difficult decision to choose one of them. Although Amibroker has multiple database support, data directly from the server is not possible and this often leads to delays in getting the data. This is not good for professional and regular traders. To avoid this situation, many traders use an MT4 plugin to stream real-time data from MetaTrader to Amibroker. This enables them to employ the power of Amibroker to chart, back test and generate signals, while using MT4 data.

The bottom line is that the choice for the best charting software will depend on a trader’s individual trading style and needs.

Disclaimer

If you liked this educational article please consult our Risk Disclosure Notice before starting to trade. Trading leveraged products involves a high level of risk. You may lose more than your invested capital.