Mastering Custom Symbols in MT5

Mastering Custom Symbols in MT5

Table of Contents:

1. Introduction
2. What is a Custom Symbol?
3. Types of Custom Symbols 3.1 Data Import Custom Symbols 3.1.1 Importing from a Text File 3.1.2 Importing from a MetaTrader History File 3.2 Calculated or Synthetic Custom Symbols
4. Benefits of Using Custom Symbols 4.1 Technical Analysis and Chart Indicators 4.2 Backtesting and Optimization 4.3 Access to Specific Symbols 4.4 Synthetic Data Generation 4.5 Data Pre-processing
5. Usage of Data Import Custom Symbols 5.1 Opening Charts 5.2 Backtesting 5.3 Limitations
6. Creating a Data Import Custom Symbol 6.1 Opening the Symbol Manager 6.2 Creating a Custom Symbol 6.3 Importing Data
7. Calculated or Synthetic Custom Symbols
8. Conclusion

What are Custom Symbols and How to Use Them in MetaTrader

MetaTrader, specifically MT5, has introduced a valuable addition to its functionality – the ability to create custom symbols. This enhancement, however, is often underestimated by many traders. In this article, we will explore why custom symbols are useful and provide a step-by-step guide on how to create them.

Introduction

Massimiliano, one of my viewers, recently asked me to create a video on custom symbols. Today, I will not only address his request but also shed light on the power of custom symbols in the MetaTrader platform. Custom symbols allow traders to import third-party data or generate synthetic data based on real-time price streams. These symbols can be utilized for technical analysis, chart indicators, backtesting, and optimization. They provide a solution when a broker's provided data or symbol availability is insufficient. Furthermore, custom symbols facilitate data pre-processing for effective analysis. In this article, we will delve deeper into data import custom symbols and calculated or synthetic custom symbols.

What is a Custom Symbol?

A custom symbol in MetaTrader refers to a financial instrument that is either imported from external sources or generated synthetically using real-time market prices. These symbols offer traders the flexibility to work with data that meets their specific requirements, which may not be available through their brokers. There are two main types of custom symbols: data import custom symbols and calculated or synthetic custom symbols.

Types of Custom Symbols

3.1 Data Import Custom Symbols

Data import custom symbols enable traders to import external data into MetaTrader for analysis and backtesting. There are two ways to import data: from a text file or from a MetaTrader history file.

3.1.1 Importing from a Text File

When sourcing data from a third-party provider, traders can import M1 OHLC data or tick data from a text file. This option is suitable for those who require specific data for analysis or backtesting purposes.

3.1.2 Importing from a MetaTrader History File

Traders can also transfer data between different MetaTrader instances or brokers using MetaTrader history files. This option is mainly used when a trader wants to import data from one broker's MetaTrader instance to another.

3.2 Calculated or Synthetic Custom Symbols

Calculated or synthetic custom symbols, on the other hand, do not require external data import. The data for these symbols is calculated in real-time based on the price streams of other assets provided by the broker. These symbols serve as substitutes for real symbols and can be used for various analysis purposes.

Benefits of Using Custom Symbols

4.1 Technical Analysis and Chart Indicators

Custom symbols provide traders with the ability to perform technical analysis on charts and add indicators. This is particularly useful when brokers do not offer the desired symbols or when traders need more data for in-depth analysis.

4.2 Backtesting and Optimization

Traders can utilize custom symbols for backtesting and optimization purposes. If a broker's data quality or duration is insufficient, custom symbols allow traders to import accurate and reliable data that meets their requirements.

4.3 Access to Specific Symbols

Custom symbols provide a solution when brokers do not offer specific symbols that traders want to investigate. Traders can import data for those symbols and perform auto backtesting with ease.

4.4 Synthetic Data Generation

While not commonly practiced, some traders generate synthetic data to aid in backtesting and analysis. Custom symbols offer a platform to create and utilize such synthetic data for traders' specific needs.

4.5 Data Pre-processing

Custom symbols enable traders to perform data pre-processing tasks, such as cleansing or formatting, on price data. This guarantees accurate and test-ready data for analysis and backtesting.

Usage of Data Import Custom Symbols

5.1 Opening Charts

Traders can open charts of data import custom symbols just like any standard symbol. However, it's important to note that custom symbols don't automatically update in real-time. Traders need to re-import recent data to ensure up-to-date price information.

5.2 Backtesting

Custom symbols can be used for backtesting in the strategy tester. However, due to the lack of real-time updates, they cannot be used with live expert advisors (EAs).

5.3 Limitations

While data import custom symbols offer several advantages, their limitations should be kept in mind. Real-time price updates are not available, which restricts their use in live trading. However, these limitations do not apply to calculated or synthetic custom symbols.

Creating a Data Import Custom Symbol

6.1 Opening the Symbol Manager

To create a data import custom symbol, open the Symbol Manager in MetaTrader.

6.2 Creating a Custom Symbol

In the Symbol Manager, click on the "Create Custom Symbol" button. If you are basing your custom symbol on an existing symbol provided by your broker, select it from the "Copy From" drop-down. This ensures the necessary metadata is set correctly.

6.3 Importing Data

Once the custom symbol is created, it's time to import the desired data. Depending on the type of data, choose the Bars or Ticks tab in the Symbol Manager. Select the file containing the data and ensure it is displayed correctly in the dialog box.

Conclusion

Custom symbols in MetaTrader offer traders a powerful tool for importing external data or generating synthetic data for analysis and backtesting purposes. These symbols provide flexibility, allowing traders to work with data that meets their specific needs. Whether it's technical analysis, chart indicators, or backtesting, custom symbols enhance the capabilities of the MetaTrader platform. By following the steps outlined in this article, traders can create and utilize custom symbols with ease.

Highlights:

• Custom symbols in MetaTrader provide traders with the ability to import external data or generate synthetic data for analysis and backtesting.
• There are two types of custom symbols: data import and calculated or synthetic symbols.
• Data import symbols allow traders to import data from text files or MetaTrader history files, while calculated symbols are generated based on real-time price streams.
• Custom symbols offer various benefits, such as enabling technical analysis, backtesting with accurate data, and accessing specific symbols.
• Data import symbols can be used to open charts and perform backtesting, but they do not provide real-time price updates for live trading.
• Creating a data import custom symbol involves opening the Symbol Manager, selecting the base symbol, and importing the desired data.
• By utilizing custom symbols, traders can enhance their analysis and backtesting capabilities in the MetaTrader platform.

FAQ:

Q: Can I use custom symbols for live trading? A: Data import custom symbols do not provide real-time price updates, making them unsuitable for live trading. However, calculated or synthetic symbols can be used in live trading.

Q: What are the advantages of using synthetic data with custom symbols? A: Synthetic data generated using custom symbols allows traders to test their strategies under specific market conditions and scenarios that may not be readily available from their brokers.

Q: Are there any limitations when using data import custom symbols? A: Yes, data import custom symbols do not receive real-time price updates, so they cannot be used with live expert advisors. However, they are still valuable for analysis and backtesting purposes.

Q: Can I apply indicators to custom symbols? A: Yes, traders can apply indicators to custom symbols, just like any other symbol in MetaTrader. This allows for comprehensive technical analysis and strategy development.

Q: How do I select the appropriate file format for importing data? A: The file format for importing data into custom symbols depends on the source and the type of data required. Traders can choose between M1 OHLC data or tick data from a text file, or use a MetaTrader history file for transferring data between instances.

Q: Can I change the metadata and settings for a custom symbol? A: Yes, traders have the flexibility to modify the metadata and settings for custom symbols, such as trading hours and display preferences. However, it is recommended to use the broker settings as a starting point for accurate backtesting results.