Difference between bots trading and MetaTrader strategies

In this article we would like to share more information on MetaTrader5 features. Most of us using trading bots on crypto-currency exchanges and have experience in it.

Most popular is Hummingbot.

Hummingbot currently comes with three main built-in trading strategies. A quick recap, these are:

1. Pure-market making: the most general form of market making, placing bid and asks for a single token pair on a single exchange.
2. Cross exchange market making (aka liquidity “mirroring”): making orders on one exchange (typically a less-liquid exchange, e.g. a DEX), and hedging those orders on another, more liquid exchange (e.g. Binance).
3. Arbitrage: monitoring a single token pair (or equivalents, e.g. different stable coin pairs) and trading when there is a pricing dislocation (buy low, sell high).

All this types of strategies have it strong and weak sides. It have limited configuration options and trader can loose funds in case when he not monitoring how bot working. This bot have weak analyze functions and it mean that you understand what are you doing when you apply bot on any pair. You should exactly understand what are you doing. Otherwise you will loose your funds.

What is the difference with MetaTrader 5?

Main difference — you can build your own trading strategy. Second — you can test it first. Using MT 5 language you can setup any script and apply your own trade logic to it.

Apply your custom trading strategy.

Simulation engine will show you how your strategy will work or not.

Simulation in progress.

You will also see possible ways to improve it by logs and reports. Depending on configuration you can add not only one engine to MetaTrader 5 server. We already testing how it working in demo environment. MetaTrader allow you to add unlimited liquidity providers and we are looking to increase it in future.

Simple configuration for strategy.

One of strong sides that do not require to know MLQ language to setup custom strategies — most options are available via UI. https://www.quantower.com/

What else are better or different?

Connectivity. When you connecting bot to any exchange — you are using single API socket connection instance. If it unstable or covered under CloudFlare — you will got disconnections. As a result — possible to lost income or even funds.

MetaTrader using gateway system — you can deploy local country connection endpoints which is provide small delay for traders. It also means speed of processing your orders.

Accounts system. MetaTrader doesn’t using exchange wallets all the time. It processing all operations inside it core and send Exchange commands what to do with funds. It possible to work with Exchange via it API with Gateway (as Nutshell will do) or direct access to database which can cause integrity issues on DB.

Nutshell Exchange will have hybrid setup in final. You will be able to trade via Exchange GUI or with MetaTrader terminal. It also support Hummingbot and in future we are planning to add following products support: Gunbot (https://www.gunbot.com/), Autonio (https://www.autonio.foundation/), HolderLab (https://holderlab.io) and Quantower trade terminal (https://www.quantower.com/).

All this options will be dropped on our Roadmap at the end of this year.

We also had ideas about iOS/Android applications, but since we applied serious upgrade on platform, Nutshell now have nice mobile UI and we will postpone application development on 2021 year.

So what we have in total? You will get most advanced features when you are using MetaTrader comparing to usual UI or any bot software. We like bots and some of them are really nice. But their functionality, even now, cannot be compared to professional trading platforms like MetaTrader. If you need professional tool — you have no choice.