Do you want to trade cryptocurrency on an automated trading platform? 3Commas, an online cryptocurrency trading platform, aims to assist users in creating automated trading robots. It is compatible with all major cryptocurrency exchanges. You can also access portfolios, dollar cost averaging bots, and other features. This 3Commas review will provide a deeper look into this cryptocurrency trading platform.
What is 3Commas?
There are many options for the bot, including market orders, short-selling, stop loss and take profit orders as well as trailing orders and composite bots.
If you don’t feel confident setting up your trading parameters, 3Commas lets you copy the portfolio of another trader. You can analyze their past profits and losses, favorite trading pairs, volumes, and other information to help you choose which traders you want to copy.
Top Recommended Platforms
78% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.
CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
There are four pricing options. There are four pricing options: a free account; a starter account at $22/month; an advanced account at $37/month; and an all-in Pro account at $75/month. The package you choose will depend on your needs and goals.
After you have learned the basics of automated trading, we will now cover the details.
Connect Exchange APIs
Before you can choose the trading strategies you want, you must first link your exchange accounts with the 3Commas platform. 3Commas will require access to your accounts to allow you to use the chosen automated strategy to trade independently.
Even if you don’t need an automated bot, it is still a great option. You can automate trade orders across all of your cryptocurrency exchange accounts with just a click.
Let’s say, for instance, you want to lower your risk by having funds stored at Binance KuCoin and Coinbase Pro.
To place an order, you would normally have to log in to each platform separately. Instead, you can place a single order via your 3Commas portal. Once all pre-defined conditions are met, this will execute your order.
The third-party exchanges being merged will determine which method you choose to link your accounts. To extract the API key, however, in most cases you will need to access the settings page of your exchange account.
Once you have all your credentials, you can go to “My Exchanges”, then click “Connect to new Account”. Copy the API key that you received from your chosen exchange. Once you’ve completed the above steps, you will be granted access to the 3Commas platform for trade execution.
Below is a list of 13 exchanges that are supported by the platform
- Coinbase Pro
After you have connected your favorite exchanges to 3Commas it is time to choose the trading strategy that you will use. Let’s talk about SmartTrade before we get to the automated bots.
As we mentioned in the previous section 3Commas allows you to trade across multiple exchange platforms using one hub. SmartTrade is the best way to do this.
SmartTrade may not be supported by your exchange. However, many of the trading options offered through SmartTrade such as stop loss or profit taking order should be available on the exchange. Now you can take your cryptocurrency trading to a whole new level.
SmartTrade hub will choose which trading features to offer depending on your trading strategy knowledge. Below is a detailed breakdown of some of the most requested features.
Tracking your order
Since their introduction to the stock exchange, trailing orders have proven to be a valuable tool for trading. Trailing orders allow you to automatically set your profit taking or stop loss parameters, regardless of the underlying asset being traded. This is dependent on market conditions.
What do you do if Bitcoin prices rise? Normally, you would be limited to a fixed profit-taking limit. You can adjust your stop-loss parameters and your profit take percentages with the trailing order.
SmartTrader allows you to place pre-defined short orders as long as the third-party cryptocurrency exchange supports them. 3Commas can execute a short order to sell your existing holdings if you trade USD/ETH and feel that the support level is about to break.
This is a great way for you to be able to respond to market conditions independently and maximize your upside potential. When there is a bearish market in cryptocurrency trading, you can profit by a short sale via 3Commas.
Although the SmartTrade hub’s smart selling feature may seem complex at first, it is a valuable tool once you get to know it. In its simplest form, the smart sell feature allows you to sell one or several coins and then buy them back later.
Let’s say you have XRP and are worried about its price falling. Because you are confident in XRP’s long-term viability, value, and stability, you will be looking to buy back into the market when the price reaches a certain point. SmartTrade can do this for you, so you don’t have to go through the hassle of manually transferring funds across your various cryptocurrency exchange accounts.
You can make your business more profitable by using automated dollar-cost averaging. Each time an asset reaches a new stage, you can purchase a predetermined number of coins.
3Commas offers two options for automated trading robots. If you’re an experienced trader, you can modify your trading conditions. If you are a beginner trader with limited to no trading experience, you can copy portfolios of other 3Commas users.
Before we go into the details about the automated bots let’s make sure to note that technical analysis metrics can not be integrated into the decision-making process. This includes Bollinger Bands and Moving Average Convergence Divergence. TradingView allows you to personalize your bot. The final decision-making process depends on the cryptocurrency signal finder.
TradingView Cryptocurrency Signal Locator
TradingView’s signal finder scans cryptocurrency trading market micro-second by microsecond in order to detect potential profit signals. There are four types of orders that the protocol can issue. These are a strong buy and strong sell as well as a buy.
Once a signal is issued, and the 3Commasbot executes it the bot will place an order for a number. TradingView will determine the exit strategy to profit or lose.
It is possible to customize details, such as when to enter or exit the market, to the ‘t.
Customizing Your Trading bot
These are the key metrics 3Commas allows to adjust.
- Exchanges: You have the option to choose which cryptocurrency exchanges your bot should trade on. Trades of large volumes can be done on several exchanges. You don’t need to place each order individually, as the bot will perform all orders simultaneously. Spreading your orders across multiple platforms will ensure that you don’t miss any trading opportunities.
- Pairs: Here you can specify which trading pairs you want your bot to trade for you. You can choose the pairs that you would like your bot to trade, such as BTC/USDT and BTC/ETH. Before you begin, it is worth looking at the “Recommended Pairs” tab. Based on the market conditions you provide, this tab will list the best trading pairs.
- Initial Trade Size: The bot needs to know the trade size you want. The bot will place additional trades once the initial order has been placed. This is based on your pre-determined conditions. The amount that you want to purchase in relation to the base currency will be required. If you intend to trade BTC/LTC, your initial trade size should be in BTC.
- Safety trade size: This parameter can be used to calculate a cost average. As we’ve briefly explained, this allows you to lower the average price at which you buy coins. For every percent against you, a bot will place safety orders. If your trade value is USDT/ETH, and the bot places safety orders at 1.5ETH, it will place a safety order if the price falls by 1%, and again if it drops by another 1%. The unit of currency that you use must be equal to the base trade size. This would be USDT in the example above.
- Safety Trade Limit: This parameter is based on the above metric. After every 1% decrease, the bot can place a new safety order. It is important that you specify how often the bot should do this.
- Safety Trade Deviation: The bot can determine the percentage drop during the execution of your safety trade. In the box, enter the percentage you desire.
- Safety Trade Scale: It doesn’t mean you have to use a specific percentage. Instead, you can tell the bot to use a scaled strategy in safety trades. For example, you can increase the size of your safety trading with every percentage decline.
- Trading volume restrictions (Trading volumes restrictions): This is an important trading metric. Your bot can only execute your trading conditions if your chosen pair has reached a minimum 24-hour trading volume.
Trading Signals Marketplace
If you find the above strategies confusing, 3Commas offers trading signals and other signals.
You can buy trading setups directly from 3Commas Bots.
Historical trading results can be viewed for each bot on the market.
An automated bot must have a track record of consistently producing consistent profits. Each bot has its own strategy, so they are riskier than the others.
We will now look at the pricing plans after you have seen the basic features of the 3Commas platform.
ThreeCommas offers four packages. These include the Pro plan, which costs $75 per month, and the Junior plan, which is completely free.
If you select a paid subscription, you can pay using cryptocurrency or PayPal. The first can be set up as a monthly subscription. This must be done each month manually. You have the option to cancel your monthly subscription at any time.
Junior Plan – Free
The free plan includes the vast majority of 3Commas’ features, including SmartTrade or MarketPlace. The TradingView pricing signals are not included in the free plan, so you won’t be able to access automated bots. If you wish to receive this feature, upgrade. If you plan to trade more cryptocurrency than $750 at a time, the free plan can’t be used.
The starter plan ($22), which includes most of the same features and can be used to automate bots, has some limitations. Only the difference is that starter plans include cancellation and error notifications.
If you want to incorporate automated trading bots into your trading strategy, the advanced package is the best choice. For $37 per month, you’ll have direct access to TradingView pricing signals.
If you want to use all the features of 3Commas, you will need $75 per month. You will get all the benefits of the basic plan and more with the advanced plan. Both Complementary and Simple bots can be used. You can also use the BitMEX bots, which is a big advantage over other plans. The entire portfolio management suite is available to you, which isn’t part of the other plans.
3Commas Review: Should you Try It?
3Commas is the best platform to help cryptocurrency traders move from manual trading into automated trading. TradingView installed on your computer and trading on an exchange like Binance support the platform, you can make even more use of it. 3Commas is available to advanced cryptocurrency traders who are comfortable with bots. They may find TradingView integration more complicated than necessary.
You might consider a free trial of the platform before you make a commitment. 3Commas allows you to test the platform for free before you commit.