In This Article
The Importance of a Multi-Asset Platform
Traders who want to diversify their portfolios and derisk their positions used to be faced with a variety of partially overlapping tools and platforms. The issue here is one of fragmentation and a loss of focus and productivity that can quickly arise when traders are pulled in a variety of different directions. By switching to a multi-asset platform, traders can monitor their positions across all markets from a central hub. It’s this aligned point of focus that allows them to fully capitalise on macro trends.
For example, making use of an MT5 download offers expanded features when compared to the earlier MT4 platform. Prime examples of this include 21 vs 9 timeframes and no more dominant focus on Forex, both of which can help traders focus on specific areas in certain markets. The end goal is always to be able to take up positions that give a chosen strategy the best possible chance of success, and that means the more flexibility and tools on offer, the better.
The Rise of Personalised Automation
One of the significant features of the MT5 platform is the MQL5 programming language, which is designed for the creation of bots for trading alerts and automated execution. Multi-asset traders will typically have to manage thousands of data points throughout the day, and this is something that often precludes a traditional manual approach to opening and closing positions.
Personalised trading bots and expert advisors can be used to make optimal use of algorithmic trading functions. Multi-asset traders who spot opportunities in new markets and in trading new asset classes can adapt and evolve at speed, allowing them to create bespoke strategies that can then be implemented at scale.
Leveraging AI-Powered Trading Assistants
The use of AI is something that everyone is aware of, and yet, there seem to be more misses than hits in many ways. The issue here is not one of principle, but one of execution. By its very nature, AI is capable of making decisions far more consistently and rapidly than a human brain, but this is no guarantee of efficacy. What is needed is a series of balances and backstops that will ensure that the AI system that is being deployed is working as expected.
The MT5 platform uses AI-powered trading assistants that can be overseen by human operators. The idea here is to trade volume at speed, but to do so in a way that ensures that unintended outcomes and deviations from intentions are readily identified. Flash crashes and market conditions where the starting parameters break the model of the AI assistant can be readily identified and addressed.
A combination of human-defined strategy and AI-powered execution is also important for aspiring traders, as well as those who have achieved success with a specific asset class and who now want to diversify. By ensuring that the finer points and nuances of each strategy are fully defined and understood, this hybrid approach makes sure that the traders are always in control of their positions. This is exactly what is needed when it’s time to set the tone for an iterative approach where human intervention can always be deployed.
Integrated Strategy Testing
One of the primary considerations a multi-asset trader must make is whether or not they can deploy the same strategy across multiple assets and markets. While the principle of buy low and sell high remains in any trade, the fine details can differ significantly. For example, a forex currency pair can be reasonably expected to be affected by global events such as natural disasters, government budgets, wars, and trade deals. A knowledge of these events is essential for a forex trader, as is an integrated economic calendar. But does the same apply to the crypto markets?
In many ways, yes, but in some important ways, definitely not. Crypto is more volatile in many instances, especially if a particular cryptocurrency has achieved meme status online. Sudden mass movement towards a specific coin or token can lead to market behaviour that may not be reflected in more traditional markets. The point here is that a multi-asset trader needs to be able to test and refine their strategies in a wide array of different test conditions. MT5 is known for its highly flexible and fully integrated strategy testing tool that allows traders to refine their strategies across multiple asset classes.
Advanced Charting Functionality
While the purpose of this guide is not to promote a specific tool, it does help to make a direct comparison to an alternative approach. MT4 is a platform that forex traders will be familiar with, so why is it that it is far less popular with traders who branch out and look to trade multiple assets at the same time? A direct comparison of the charting functionality and other analytical features will make this clear:
MT4 offers 9 timeframes compared to 21 for MT5
MT4 comes with 30 built-in indicators, whereas MT5 has 38
MT4 includes 23 analytical objects, but MT5 offers 44
The greater visual and analytical power of MT5 is one of the reasons it has become increasingly popular with traders who want to work in crypto markets alongside their earlier forex forays. The idea here is a simple one and relies on having more ways of understanding the behaviour of a given market. The proliferation of timeframes MT5 offers is a prime example of this and allows traders to take a more specific and focused approach to trading what is often a highly volatile asset class.
Live Depth of Market View
The depth of the market defines the size and nature of the opportunity, and having live access to all relevant data can often make the difference. Platforms like ThinkMarkets can be used to access such information, and it’s the speed and accuracy of the information that proves vital to traders across all asset classes. By taking a real-time approach to understanding supply and demand, strategic traders can gauge the liquidity of an asset in a highly dynamic way. If you consider the volatile nature of crypto markets, for example, this becomes particularly important.
Traders who are able to see how many buy and sell positions are being opened and closed can quickly adapt their automated strategies. Not only that, but traders who are able to access this data across multiple asset classes can spread their risk profile by moving some of their wins from volatile markets into safer, more stable markets. This approach can help consolidate wins from opportunistic strategies, such as scalping, so that traders can take more of an institutional approach to structuring their wider investment portfolio.
Multi-Asset Trading Beyond 2025
The rapid proliferation in asset classes and the depth of each class mean that a multi-asset approach to trading will continue to be an effective way to distribute risk. Trading in multiple markets at the same time will help traders capitalise on macroeconomic trends across a wide array of different timeframes. For this reason, the use of platforms such as MT5 is expected to grow, especially for those looking to trade forex and crypto simultaneously.
It’s also important to highlight the impact of reputation. New traders who are looking to begin their journey will generally move towards the platform with the lowest barrier to entry or the platform with the highest level of adoption. This gives MT5 a built-in advantage over emerging platforms.
