As an avid technology enthusiast, I often find myself gravitating towards that which is able to automate any aspect of daily living, no less trading; therein lies the role of trading bots which are able to automate the process of buying low and selling high, circumventing any human emotions and the monotony of an apparent chore.

Having indulged myself in various offerings by Kucoin, Huobi, Pionex & Jet-bot among many others, I have nonetheless remained on the lookout for the ultimate trading bot that combines functionality with versatility and value for money — that is, until I started trading with 3commas, which has ticked off several points on my checklist!

3Commas Overview

3Commas is an advanced cryptocurrency trading bot that automates trades, generating passive income effortlessly. With the correct settings, suffice to say that it can be quite a formidable stream of cash flow generator!

Features

• Trade Automation — A variety of trading bots are available such as the DCA, grid, options and futures bot that trade tirelessly 24/7 to generate profits. Trading bots provide better discipline, execution, more range, and more energy than humans. With no margin for error, opinions, or fatigue, a bot religiously follows instructions, sticks to the trading plan, does not get tired, and can account for more data than a human.
• Security — You never have to deposit any funds into3Commas, as all the trading is done directly on your exchange, via your API keys. Your funds are secure because the bot does not have your credentials — it simply executes trades on your exchange according to the manner in which it was programmed, with no withdrawal credentials.
• Supported on 18 major cryptocurrency exchanges eg Binance, FTX, Kucoin, Huobi, Gate io, Gemini and so on. For the full list of supported exchanges, click here.
• Paper Trading — Test out your strategies without using real funds.
• Signals — Free and paid signals are available to guide automated trading.
• Copy Trading — Check and copy top-performing bots from other users!
• Preset settings — Trade using preset settings created by professionals, if you are not familiar with setting the bot.
• Multiple notification options — Receive deal notifications on your browser, through mobile app, on Telegram, and via email.
• Portfolio tracking — Conveniently monitor and analyze your portfolios across different exchanges from a simple, intuitive interface!

Smart Trade

Buy and sell coins in a single window!

• Concurrent take profit and stop loss
• Sell by multiple targets
• Charts and signals from TradingView available in a single window
• Trailing — allows for potentially greater profits as coin prices may fluctuate more than the set target.
• Smart Cover — Accrue additional profit with unexpected market moves. Sell and buy back coins.

Automated Trading Bot

Trade 24/7 with popular technical indicators such as RSI, moving averages, MACD, Bollinger Bands and so on, among many others!

• DCA Bot: A Dollar Cost Averaging bot enables users to accumulate profits incrementally over time with consistent investments. This method ultimately lowers the average entry price, makes it easier to achieve Take Profit targets, and mitigates volatility risk. DCA bots allow users to divide their investments into smaller pieces and buy assets at various points and prices, resulting in a better average price for the position. The 3Commas DCA bot allows users to apply their DCA strategy automatically.
• Grid Bot: Trade at opportune moments! Supports both spot and futures account; single and multiple coin pairs. Grid bots are most suited to generate profit from a sideways market where the price trend fluctuates within a certain range. By establishing upper and lower limit prices, the grid is split into an equal amount of horizontal buy (low) and sell (high) lines, and as the price reaches those lines, the GRID bot executes trades.
• HODL Bot: Build your long hold portfolio
• Options Bot: Buy Call and Put Options

Portfolios

• Creation
  Create portfolios with any coin amounts
• Balancing
  Balance your portfolio by maintaining coin ratios
• View
  Review incomes of other 3Commas users
• Copy and edit
  Copy and edit coin ratios in your portfolio

My Results — An Impressive 22% ROI in 5 Days!

Of all the features listed above, my favourite is the DCA bot using a futures account, due to the ability to avail a leverage, start with a small capital, and safely avoid liquidation with the execution of multiple preset safety orders.

Testing the waters, I invested a capital of 100USD into a customized DCA bot, and am pleased that this generated a solid $22 profit in just 5 days! Sounds too good to be true indeed; is this just a beginner’s luck? Time will tell; I will be providing future updates of my trades as it unfolds in upcoming articles.

Getting Started With 3Commas

• Sign up for any supported exchanges such as Binance, FTX, Kucoin, Huobi etc, if you don’t already have an account.

PRO Tip: Use FTX with 3Commas to access 3Commas PRO functionality on a FREE plan!

• Sign up for 3Commas here to receive a FREE 3 day trial and an exclusive 10% discount for the first monthly subscription, should you wish to proceed with the paid plan.
• Connect your exchange to 3Commas via an API key created directly on the exchange’s platform.
• Start exploring the vast interface of 3Commas, with the option of enabling “Paper Trading” to test your strategies!

Setting Up Your Bot

The full details to setting up a bot will be covered in future articles. Here are some terminologies/ basic principles to get you acquainted with the basics of setting up your trading bot on 3Commas, specifically the DCA trading bot, which is my favourite so far.

• Strategy & pair

- Choose “Long” if you are bullish on the asset.

- Choose “Short” if you are bearish on the asset.

If you are unsure of the projected direction of the asset or if the market is trending sideways, you may set up both a short and long bot to profit from price fluctuations in both directions. (Disclaimer: Minor price fluctuations will be well tolerated; however a major unfavourable trend may result in liquidation and loss of capital, depending on the settings of the bot.)

• Deal start conditions: Combining standalone indicators and various TA Presets is possible. All conditions link with logical AND, so ALL of them should be TRUE to let the bot open a new deal. All these conditions evaluate their values only when the candle is closed on the chart within a specified time frame.
• Base order size: The initial margin for the order.
• Leverage: 2x-20x

Lower leverage = lower risks. Higher leverage= higher risks.

• Take profit: How much profit your bot should make from each deal.
  Profit amount can be calculated as a percentage based on your base order or total volume. Profits tend to be taken faster if calculated based on your base order, but the amount maybe lower. While a higher take profit may be beneficial in a bull market, a lower take profit might be more useful in the regular day-to-day sideways market so that the bot will open deals more frequently, instead of waiting for that high take profit order which may take days/ weeks to achieve. A reasonable range is 0.5–3%.
• Trailing: If enabled, after reaching a take profit target, your bot will continue to keep your deal open and wait for a further price growth to close a deal with a higher profit.
• Trailing deviation: The price drop percentage after which your bot should execute the take profit order. A reasonable range is 10–20% of your take profit. (If your take profit is 1%, then a reasonable trailing deviation is 0.1–0.2)
• Safety order size: Safety orders average your position if price goes in the opposite direction against your position, bringing your take profit target closer to current price. Can be set same or higher than the start order amount.
• Max active safety orders count: The maximal number of safety orders your bot potentially could use for 1 deal.
• Max active safety orders count: Number of safety orders that are simultaneously placed. Recommended to use 3–5 (Allows for times during big market movements when Binance becomes potentially overloaded and doesn’t respond promptly to bot’s requests.)
• Price deviation: The percentage step between safety orders.
  If you set 1% deviation it means that each new safety order will be executed each time when price goes -1% from your start order entry price.
• Safety Order Volume Scale is used to multiply the amount of funds used by the last Safety Order that was created. Using a larger amount of funds for Safety Orders allows your bot to be more aggressive at Dollar Cost Averaging the price of the asset being traded. For example, if you set a Safety Order Volume Scale (martingale) of 1.1 with an initial safety order of 10USDT, the second safety order will be 10x1.1=11USDT, the third safety order will be 10x(1.1x1.1)=12.1USDT and so on.
• Safety Order Step Scale is used to multiply the Price Deviation percentage used by the last Safety Order placed on the exchange account. Using a larger value here will reduce the amount of Safety Orders your bot will require to cover a larger move in price in the opposite direction to the active deal’s take profit target.

Pricing

3Commas is free to use, with limited functionality. For full details on pricing, click here.

Pro Tip: Connect FTX to 3Commas to access 3Commas PRO functionality on a FREE plan! Sign up for FTX here!

Final Thoughts

Operating since 2017, 3Commas has established for itself a solid reputation — and not without reason! This platform is quite a formidable and underrated option among the many AI trading bots out there. Built to simplify the arduous task of crypto trading, 3Commas makes notoriously inefficient and time-consuming trading processes simple, easy and convenient.

Click here to sign up and enjoy a FREE 3 day trial, with an exclusive 10% discount for the first monthly subscription if you see value in this first-class trading bot! Happy generating passive cash flow with AI, on autopilot!

Resources

3Commas Academy: https://3commas.io/academy

Twitter: https://twitter.com/3commas_io

Facebook: https://www.facebook.com/3Commas.io

Telegram Chat: https://t.me/Community_3Commas

Telegram announcements: https://t.me/commas

Reddit: https://www.reddit.com/r/3Commas_io

Discord: https://discord.com/invite/SucJxAmZv6

Some materials used for this post has been taken from the official Cake DeFi blog.

★Free apps to earn money without any capital!★

🎁 Honeygain A passive income app to earn money off your unused internet bandwidth. Get $5 for free, no investment required.

🎁 Peer2Profit A passive income app to earn money off your unused internet bandwidth.

🎁 IPRoyal Pawns A passive income app to earn money off your unused internet bandwidth.

🎁 EarnApp A passive income app to earn money off your unused internet bandwidth.

★Cryptocurrency Investment Platforms★

🎁 Cake Defi A one-stop investment platform that bakes passive cashflow at APYs of up to 100%! Get a $50 bonus in DFI with a $50 deposit.

🎁 Nexo An advanced, regulated digital assets institution offering instant crypto loans, daily earning on assets with APYs of up to 36%, an exchange, with services in 40+ fiat currencies in more than 200 jurisdictions. Get a $25 bonus with a $100 deposit.

🎁 Binance The world’s largest cryptocurrency exchange that needs no introduction!

🎁 FTX A centralized cryptocurrency exchange that specializes in derivatives and leveraged products.

🎁 Kucoin An expansive cryptocurrency exchange, with interesting offerings like staking, free trading bots and bitcoin cloud mining services.

🎁 Huobi A cryptocurrency exchange with diverse offerings, free airdrops and trading bots.

🎁 MEXC A cryptocurrency exchange with interesting listings and frequent airdrops from holding the MX token.

🎁 Crypto.com A cryptocurrency exchange based in Singapore. Get $25 in CRO on staking for a Ruby card.

★Cryptocurrency Trading Bots★

🎁 3Commas A cryptocurrency trade management platform offering DCA bots, Grid bots, Options bots, Futures bots, HODL bots, Scalper Terminal, and full Portfolio management all from a single convenient interface.

🎁 Jet-bot An advanced spot and futures trading bot with Copy Trading functionality. 3-day trial period available with demo account.

🎁 Pionex A free multifunctional arbitrage trading bot that automates the process of buying low and selling high, 24/7.

🎁 One Button Capital An AI bot powered by neural networks that manage your cryptocurrency portfolio on autopilot.

★For Malaysian investors★

🎁 Luno Get a RM25 bonus in BTC with a RM100 purchase of BTC!

🎁 Stashaway Get free investing for 6 months!

🎁 Wahed code ‘KENLIE1’ RM10 signup bonus

🎁 Capbay P2P code ‘8879c6’ RM100 signup bonus

🎁 Versa Get a RM10 bonus with a RM100 deposit!

🎁 KDI Get a RM10 bonus with a RM250 deposit!

Connect with me Medium | Read.cash | YouTube | Twitter