How to Trade with AI: MetaTrader 5 AI New Features

Artificial Intelligence is transforming the way we trade, not just in theory but also in practice.  

What once seemed like a far-fetched idea is now a reality. With the evolution of machine learning and AI-powered insights, every other trading platform now offers one or another AI feature that supports trade optimisation and investment strategies. While AI tools can enhance speed and automation, they also introduce risks such as overfitting, reliance on historic data, and potential system errors. Trading losses remain possible. 

A report from the International Monetary Fund (IMF) shows that patent applications related to algorithmic trading have jumped from 19% in 2017 to over 50% each year since 2020¹. This highlights the growing interest in AI, though its application varies among market participants and is not suitable for all traders.  

With the use of AI-signal providers, trading automation and AI-powered trading bots or Expert Advisors (EAs), trading has significantly evolved, making the process faster and is capable of operating around the clock. 

Traders might also make use of AI stock scanners and algorithmic backtesting tools to optimise strategies across different trading time frames. 

In this article, we will understand how to trade with AI and also explore the AI features available in MetaTrader 5. 

Let’s begin. 

The information in this article is provided for educational purposes only and does not constitute financial advice. Consult a financial advisor before making investment decisions.

How to Trade with AI: An Introduction 

Learning how to trade with AI, also known as artificial intelligence, might sound intimidating, especially if you are inexperienced with technology. But the whole process can be straightforward once traders understand how it works. 

AI trading also allows traders to implement multiple investment strategies, including trend trading, swing trading, and arbitrage trading, while leveraging AI-powered analytics to refine their approach. 

Here’s a gist of how AI trading is different from human-based trading. 

There are different ways in which traders make use of trading algorithms. One method involves programming the AI trading tool or algorithm itself. The system could then scan multiple markets and place trades whenever the conditions they set are met. 

But traders don’t necessarily need to be programmers to use AI trading. Most AI trading software also allows them to download pre-made algorithms. In this case, they might need to spend some time searching through the AI trading robots to find one that better suits their trading style. 

Traders might come across different kinds of AI trading strategies that they may find helpful. One common approach is a trend-following strategy, where the algorithm reacts to price momentum and enters or exits trades when certain patterns appear. 

Apart from the trend-following strategy, traders may also find AI tools that use sentiment analysis. These algorithms scan news headlines and reports to understand the sentiment of the markets and then trade based on that information. Traders can even code their personal trading strategy rules in the system. 

Additionally, traders can use AI model validation tools to ensure that their chosen algorithm or Expert Advisor performs as expected under different market conditions before applying it live. 

However, backtesting and evaluating the algorithm on a demo account is essential before applying the strategy to a live account. Traders usually do this by tracking trading performance ratios such as the win-loss ratio, drawdowns to understand how consistent the results are over time. However, it's important to remember that past performance, including backtested results, is not necessarily indicative of future results. 

What is the MetaTrader 5 Tool and How Does it Work? 

MetaTrader 5 is a multi-asset trading platform that traders use to trade Forex, CFDs on equities, CFDs on commodities, and more. It offers features that support algorithmic trading and the use of trading bots. 

For AI-based automated trading, the software supports machine learning algorithms or algo-based strategies. Traders can set their own indicators or choose from the ones already available in the platform. Moreover, those who already make use of the built-in AI features of MetaTrader 5 can extend the platform functionality by connecting external bots through API integration.  

For Forex signal providers, traders may explore the MQL5 trading bot marketplace, where they might find pre-built EAs and signals. However, traders may consider exercising caution and testing any strategy on a demo account before applying it to live trading. 

In the broader ecosystem, MetaTrader 5 is often recognised for combining multiple asset classes, advanced analytical tools, and AI-ready integration features in a single interface. 

MetaTrader 5 AI Features 

Let’s look at two AI features available in MetaTrader 5 

CoPilot Feature 

This feature in MetaTrader 5 may be useful both for beginners and for experienced coders. 

What is the CoPilot feature? 

CoPilot is an advanced automatic coding assistant that is powered by OpenAI-based models. With the CoPilot feature in MetaTrader 5, traders may create MQL5 code without having to write it directly in MQL5.  

Simply put, the Copilot feature lets a trader write commands in natural language. It then takes care of implementing the idea into an MQL5 code. This can make the process easier for beginners who may not be familiar with coding syntax, while also potentially saving time for developers. 

CoPilot supports AI model training, meaning it is able to learn and improve from user inputs and past inputs, so that strategy building becomes more refined. Traders may use it for trading bot development and automate entries, exits, stop losses and position sizing rules. 

By combining natural language processing with automated MQL5 coding, CoPilot may help traders build strategies, though outcomes depend on implementation and market conditions.  

ONNX Models 

ONNX, or Open Neural Network Exchange, is an open-source format that allows machine learning models to be used across platforms. 

In other words, ONNX is a common format that may allow models built in one framework, such as PyTorch, to be converted and then used in another framework, like TensorFlow, without needing to rebuild them from scratch. 

ONNX is supported by some of the biggest names in the tech industry, including Amazon Web Services, Facebook, and Microsoft. 

MetaTrader 5 indirectly supports ONNX integration via MQL5, where traders may load and run ONNX models inside Expert Advisors or indicators. Traders may also make use of backtesting tools on MetaTrader to test imported models on historical data. This would assist in assessing the performance, consistency, and areas of potential weakness. However, bear in mind that backtesting is conducted on historical data, and the past performance does not always translate into future outcomes. 

For more advanced applications, ONNX can support deep learning trading, too, whereby it may identify market trends, volatility clusters, or sentiment-driven price movements. 

Visualising Machine Learning Models and Neural Networks 

Understanding how machine learning models work might be the first step toward trusting and developing them and therefore understanding how to trade with AI more effectively. MetaTrader 5 may help with this by allowing traders to visualise machine learning and deep learning models. 

By visualising and backtesting these models, traders might understand how the AI model performs under different market conditions. Beyond performance, visualisation may support AI risk modelling, giving traders a clearer picture of potential weaknesses or exposure under different scenarios.  

These insights may be useful in creating and developing stronger AI trading models. 

How to Trade with MetaTrader 5 at Admiral Markets 

• Create an account: Traders may register and choose between a demo account (practice) or a live account (real capital).  
• Download the platform: Install MetaTrader 5 and log in.  
• Add funds (for live accounts): Deposit via a chosen payment method. However, only deposit money you can afford to lose. Trading leveraged products involves a high risk of losing capital.  
• Set up trading parameters: Set up charts, timeframes, order types, indicators and Expert Advisors, if you wish to try your hand at AI-based trading.  
• Risk management: Set stop-loss and take-profit levels and monitor your exposure closely. Remember that leverage in trading can magnify both gains and losses. 

If you would like to practice trading on the financial markets with virtual funds, you can register for a free Admiral Markets demo trading account. Click the banner below to register. 

Sources: 

1. https://www.imf.org/en/Blogs/Articles/2024/10/15/artificial-intelligence-can-make-markets-more-efficient-and-more-volatile 

Articles you might find interesting: 

• A Beginner’s Guide to Automated Trading 
• Ultimate MQL5 Guide 
• Top Free Backtesting Software for Strategy Testing 

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