After deciding to take on the prop firm challenge or perhaps after receiving funds, you want to ensure that your trading setup is as effective as possible. In any case, you must be aware by now that the majority of prop firms choose to use MT5 (MetaTrader 5) and for good reason.
It is feature-rich, quick, and strong. The problem is that you aren’t trading to your maximum capacity if you aren’t optimising your MT5 settings.
A lot of traders simply download MT5, sign in and begin pressing buttons. A huge error. You can get an advantage with a well-optimized MT5 configuration which can speed up execution, improve analytical clarity, and make trades more seamless.
And if we talk about prop trading where strict drawdowns and daily limits can make or break your career—you need every edge you can get. So, let’s see exactly how you can optimize your MT5 settings for prop firm forex trading.
Optimize Your Chart Setup for Maximum Clarity
The colors in MT5 are weird, the grid lines are distracting, and it just looks… messy.
And when you’re scalping or managing multiple positions, the last thing you need is visual clutter messing with your focus.
Here’s how to clean up your charts for better trading:
Ditch the default colors & grid
Go to Charts > Properties (F8) and:
Change the background to black or white, depending on what’s easier on your eyes.
Set your candlestick colors to something simple (e.g., green for bullish, red for bearish).
Turn OFF the grid (it’s just noise).
Use a cleaner font
In Tools > Options > Charts, increase the font size for easier reading—especially if you’re switching between multiple charts.
Set up multiple timeframes
- Have M5 and M15 for scalping.
- Use H1 and H4 for swing trades.
- Keep D1 and W1 for trend analysis.
Set them up side-by-side or in tabs for easy switching.
A clean chart reduces distractions and helps you focus on what actually matters: price action.
Adjust Your MT5 Execution Settings for Faster Trades
Every second counts in trading. A slow execution could mean slippage, which could mean you lose money unnecessarily.
Here’s how to speed things up:
Enable One-Click Trading
Go to Tools > Options > Trade and check “One-Click Trading”.
Now, you can place trades instantly without having to confirm every order.
Reduce Chart Load Time
MT5 automatically loads a ton of historical data when you open charts. This can slow things down.
Go to Tools > Options > Charts and:
Set “Max bars in history” to 100,000 (instead of the default 1,000,000+).
Set “Max bars in chart” to 50,000 to prevent lag.
Adjust Your Trade Execution Speed
In Tools > Options > Trade, change the default order settings:
Enable “Show trade levels” to see entry/stop levels on the chart.
Set “Deviation” to 1.5 to 2.0 pips to prevent requotes.
These small tweaks shave off milliseconds that could mean the difference between a perfect entry and slippage.
Set Up MT5 Alerts to Stay on Top of Market Moves
You don’t want to be glued to your screen all day. That’s exhausting.
Instead, use MT5 alerts to notify you when price hits key levels.
How to Set Up Price Alerts:
Open the Terminal (Ctrl + T)
Go to the Alerts tab.
Right-click > Create
Set the condition (price level, time, or indicator value)
Choose an alert type (sound, email, or push notification).
Why This Helps:
- You avoid staring at charts all day.
- You get notified exactly when price hits your levels (no need to FOMO into random trades).
- You can set alerts on key news events to avoid trading during volatility spikes.
Bonus Tip: If you have the MT5 mobile app, you can set alerts to send push notifications to your phone!
Fine-Tune Your Indicators for Better Analysis
Most traders overload their charts with too many indicators. That’s a mistake.
If you’re trading with a prop firm, simplicity is key—you need clear, effective signals without confusion.
Use Only What You Need
Stick to 2-3 core indicators, such as:
- Moving Averages (EMA 50 & 200) – To spot trends.
- ATR (Average True Range) – To set proper stop-loss levels.
- RSI or MACD – For momentum confirmation.
Customize Indicator Settings
The default indicator settings in MT5 are too generic. Adjust them to fit your trading style:
RSI 14 → RSI 7 (for more responsive signals).
MACD default → Use 8, 21, 5 (better for shorter-term trades).
Less clutter = more effective trading.
Use MT5’s Risk Management Tools to Avoid Blowing Your Account
Risk management is the #1 reason traders fail prop firm challenges.
Good news? MT5 has built-in tools to help you manage risk like a pro.
Set Up Automatic Stop-Loss & Take-Profit
Instead of manually setting your SL/TP every time, go to:
Tools > Options > Trade
Set a default Stop-Loss & Take-Profit based on your strategy (e.g., 1:2 RR).
Now, every time you enter a trade, MT5 automatically applies your risk settings.
Use the MT5 Position Size Calculator
Before placing a trade, calculate your lot size based on your stop loss:
- Open the Market Watch window.
- Right-click any currency pair > Specification > Check contract size.
- Adjust your lot size to ensure you’re only risking 1% per trade.
This ensures you’re trading with proper risk, not guessing.