Comparing TradingView and MT4 (MT5) Languages #PineScript

This article focuses on the trading platforms TradingView and MetaTrader 4 (MT4) and MetaTrader 5 (MT5), comparing their algo trading (automated trading) features. In particular, it covers creating algorithms using TradingView’s Pine Script language and creating algorithms using MT4 (MT5)‘s MQL language.

TradingView and Pine Script

Features of Pine Script

TradingView is a browser-based chart analysis tool that allows you to create custom indicators and strategies using its proprietary scripting language, Pine Script. Here are the features of Pine Script:

• Simple Syntax: Pine Script has an intuitive and simple syntax, allowing for visual testing on charts.
• Community Sharing: You can also use scripts published by other traders from the TradingView community.
• Access to Real-time Data: Real-time market data can be reflected immediately.

Limitations of Pine Script

• Backtesting Limitations: For advanced strategies or those with complex conditions, there are limitations in backtest accuracy and speed.
• Execution Speed Issues: When large-scale calculations or fast execution are needed, performance can become an issue.

MT4 (MT5) and MQL Language

Features of MQL Language

MetaTrader 4 (MT4) and MetaTrader 5 (MT5) are trading platforms widely used by professional traders, and algorithms are written using the MQL language (MetaQuotes Language). Here are the features of MQL language:

• Advanced Customization: You can create strategies incorporating advanced technical indicators and complex conditions.
• Efficient Backtesting: Fast backtesting using large amounts of historical data is possible.
• Dedicated Development Environment: You can develop and debug programs using MetaEditor.

Limitations of MQL Language

• Steep Learning Curve: MQL language can be difficult for beginners to learn.
• Real-time Data Acquisition: Regarding real-time data acquisition and updates, it may not be as flexible as TradingView.

Comparison with Moving Average Crossover Example

Moving average crossover is one of the commonly used strategies in technical analysis. Here we show how to implement a moving average crossover strategy on TradingView and MT4 (MT5) and compare them.

Moving Average Crossover with TradingView and Pine Script

A moving average crossover strategy using Pine Script can be written as follows:

//@version=5
indicator("Moving Average Crossover", overlay=true)

// Calculate short-term and long-term moving averages
short_ma = ta.sma(close, 20)
long_ma = ta.sma(close, 50)

// Detect crossover of short-term and long-term moving averages
long_entry = crossover(short_ma, long_ma)
long_exit = crossunder(short_ma, long_ma)

// Plot entry and exit signals
plotshape(series=long_entry, title="Long Entry", location=location.belowbar, color=color.green, style=shape.labelup, text="Long")
plotshape(series=long_exit, title="Long Exit", location=location.abovebar, color=color.red, style=shape.labeldown, text="Exit")

This script uses 20-period and 50-period moving averages. It uses the crossover and crossunder functions to define crossover and crossunder conditions and plots each signal.

Moving Average Crossover with MT4 (MT5) and MQL Language

Here’s an example of a moving average crossover strategy using MT4 (MT5) MQL language.

// Moving Average Crossover Strategy
extern int short_period = 20;
extern int long_period = 50;

double short_ma, long_ma;

int OnInit()
{
    // Initialize moving averages
    short_ma = iMA(NULL, 0, short_period, 0, MODE_SMA, PRICE_CLOSE, 0);
    long_ma = iMA(NULL, 0, long_period, 0, MODE_SMA, PRICE_CLOSE, 0);
    
    return INIT_SUCCEEDED;
}

void OnTick()
{
    // Calculate moving averages dynamically
    short_ma = iMA(NULL, 0, short_period, 0, MODE_SMA, PRICE_CLOSE, 0);
    long_ma = iMA(NULL, 0, long_period, 0, MODE_SMA, PRICE_CLOSE, 0);

    // Check for crossover and crossunder
    if (short_ma > long_ma)
    {
        // Execute long entry logic
        // Place Buy order or perform other actions
    }
    else if (short_ma < long_ma)
    {
        // Execute exit logic
        // Close Buy order or perform other actions
    }
}

This MQL script uses the iMA function to calculate moving averages and dynamically updates them within the OnTick function. It checks moving average crossover conditions and implements entry and exit logic for trades accordingly.

Comparison and Summary

TradingView and MT4 (MT5) each have their own features and advantages, and the platform to choose depends on usage purposes and trading style. Pine Script is suitable for visual testing and simple strategies, with community sharing as a strength. On the other hand, MQL language excels when advanced customization or fast backtesting is needed.

It’s important for traders to choose which platform is best suited based on their needs and technical skills. Understand the features each platform provides and utilize them for implementing algo trading.