3 Commas

Introduction

The 3 Commas trading platform links to 12 of the top cryptocurrency exchanges by volume.
Traders are provided with their own API key to automatically sign up with its participating exchanges.

The exchanges include Bittrex, BitFinex, Binance, Bitstamp, KuCoin, Poloniex, HitBTC, Cex, GDAX, OKEX and Huobi, and more may be added.

The high volume exchanges are more likely to provide good liquidity in listed cryptocurrencies.

3 Commas offers a 3 days trial to their PRO package including almost all their main features.
I remember the Paper trading (Bot simulation) isn't available during the trial period though.

The 3 Commas platform has made trading across these exchanges and cryptocurrencies seamlessly.

During a trade order, drop down menus prompt the trader for their preferred exchanges and cryptocurrencies.

The trader can choose between a simple bot — one currency pair — or a composite bot — multiple currency pairs.

There are minimum trades for each coin, for example, .001 for Bitcoin and .01 for Ethereum.

3 commas allow to trade spot, options, futures if the connected broker has those financial products available.

Paper Trading

It's crucial when configuring a bot to NOT test with your real Live account right away - but using a paper trading account instead.
Paper trading accounts aren't available for trial users - you'll have to subscribe to one of their packages before using that feature.

After subscribing, you will have to activate the 3 commas Paper trading account from your 3 commas profile page

Activate the Paper trading on 3 commas

  Then, the Paper Trading Account box should appear at the very top.
Please click on it to start using it with 3 commas

Use the Paper trading on 3 commas

Create your Bots

The BOT creation url is this one: https://3commas.io/bots/new
Pay attention to what I'm going to say as it's important.
With 3 Commas, we need to create 1 bot per trade direction

  • 1 trading bot for Long trades
  • And 1 trading bot for Short trades

For a LONG bot, you can select attach as many cryptocurrencies as you want.
For a SHORT bot, only 1 cryptocurrency can be linked.

For both bots, I use the Composite mode.

In this chapter, we're going to explore how to create a bot compatible with TradingView and using our 3 commas Paper Trading account.
I strongly recommend reading this Medium.com article to understand all the settings

Note that I:

- named this Long bot with a clear name
- connected my Paper Trading Account
- selected the Composite mode (to attach multiple cryptocurrencies to the bot)
- as I intend to trade later with my real account using Binance and USDT (Tether), I want to simulate a paper trading bot using the USDT_ALL coins.

Configure your 3 commas bot for TradingView

Then, I decided to define my position size (called "base order size" on 3 commas) to $500 and selected "Long" as I want this bot to take Longs positions.
From the Deal start condition panel, select Trading View custom signal - this is the part used to tell this bot he'll receive longs signals from your TradingView alerts.

Last but not least, define your Take Profit and Stop-Loss settings.
Then click on the "Save" button.
After, you're going to be redirected to an address looking like this: https://3commas.io/bots/1234567

The trading bot codes to used are available at the bottom of the page.

Create your TradingView Alerts

Let's use our Algorithm Builder Universal alerts.

With our Trading Method, we recommend using for each cryptocurrency/3 commas LONG Bot at least 2 alerts:

  • Buy Alert: to enter in a Long position
  • Hard Exit Long: our customary stop-loss system

Important Notes On TradingView, you need to go Long on an asset/timeframe, you need to create 2 alerts for that asset and timeframe.
Meaning, if you want to trade BTC/USDT using the 5-minutes and 15-minutes timeframes, you need to create 2 alerts (see below) on BTC/USDT 5m and 2 alerts on BTC/USDT 15m

1. Buy Alert: to enter in a Long position

The alerts settings to enter a LONG with your BOT are as follow:

- Condition: BEST Algorithm Builder
- Buy Alert (you can also use the "High Reward Long" and "Super High Reward Long" events)
- Options: Once per bar Close - we want our entries to be based on candle close to avoid many fakeout signals.
- Select open-ended and all the alert action channels you want to be notified on
- Webhook URL: https://api.3commas.io/trade_signal/trading_view
- Message: Copy the "Entry deal start" code from your 3 Commas bot and paste it in there
- Click Save

2. Hard Exit Long: our customary stop-loss system

img src="https://res.cloudinary.com/best-trading/image/upload/v1604569480/2020-11-05_10h44_33_owvigl.jpg" title="3 Commas Algorithm Builder Universal hard exit alert" />

The alerts settings to exit a LONG with your BOT are as follow:

- Condition: BEST Algorithm Builder
- Hard Exit Long
- Options: Once per bar Close - we want our entries to be based on candle close to avoid many fakeout signals.
- Select open-ended and all the alert action channels you want to be notified on
- Webhook URL: https://api.3commas.io/trade_signal/trading_view
- Message: Copy the "Close Order at Market Price" code from your 3 Commas bot and paste it in there
- Click Save

And we're done :).
When those alerts trigger on TradingView, you will see the captured events on 3 commas from your https://3commas.io/bots/1234567 url.

Short Bots

Repeat what we did above and now create a SHORT bot on 3 commas.
Then, create the alerts on TradingView with the Sell Alert and Hard Exit Short events.

This is a pretty straightforward process.

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