The current cryptocurrency market is flooded with automated bitcoin trading bots. While everyone would love to automate trading and increase their profits, the main question in everyone’s mind is that if trading bots work?
one such automated trading platform which has been in the news is 3 commas. In this 3commas review, we will go through the features, advantages, disadvantages and see if the platform helps in making automated profits.
An Introduction to 3commas
3commas is a cryptocurrency trading software which provided a wide range of useful tools and services for users to choose from. It performs real-time market analysis using powerful algorithms for getting you the best trades possible. It was started in 2014, and within four years, became one of the largest players in the cryptocurrency space. There are over 33,000 users currently being served with transaction volume in the tune of $10 million being handled every day.
3commas calls its approach ‘Smart Trading’ incorporating some very exclusive features. Let us look at each feature in detail:
Features of 3commas
The 3commas window allows users to perform transactions on multiple cryptocurrency exchange services through a single interface. They have created strategic partnerships with multiple exchange services like Binance, Coinbase, Bitfinex, and Houbi. The number currently hovers around 12, which means traders can make a more informed decision by analyzing the situation at all the different exchanges.
One of the most amazing features of 3commas is Stop loss, it helps you sell your assets when the loss percentage reaches a threshold value, say you buy a currency for $1000, and you set your stop-loss value at 10%, your bot will automatically sell your assets if the prices fall below $900. This helps you avoid major losses in the market.
Trailing Stop loss
Trailing stop loss helps you prevent major losses while considering other factors like gains made through the day. The trailing stop loss feature automatically re-adjusts your 10% stop from your buy-in price to the highest value points in the day. This way, your gains made through the day remain unaffected.
This feature allows you to stop trading and collect profit if the desired value of your expected profit is realized. Say you start trading at $500 and you want to take profit at $1000, the bot will take profit if the value is realized and stop further investment. However, this may lead to missing out on higher profit scenarios, wherein consider if, for the above case, the value reaches $1500, you miss out as you quit your trade at the take profit value.
Trailing Take Profit
This allows a trader to take profit as per his assigned value. The bot automatically will take profit of the highest point of the trend.
It utilizes a web-based platform and easy to use features that include detailed analytics. Users can make use of short, simple and composite bots to completely customize their trading strategies.
You can enable real-time notifications on your mobile, desktop or email through the settings provided. They also provide you an option of customizing your notifications setting so that you can hand pick only those notifications that you wish to receive
You can add notes and comments to all your trade orders. This helps you recollect and maintain an audit trail for keeping a track of all the transactions that took place. Adding comments may prevent you from making similar mistakes in the near future and help to repeat a profitable strategy.
One of the useful features provided in 3commas is being able to maintain a consolidated report of all the transaction carried out by a particular trader. This provides you a brief report of all the transactions that have taken place over a certain period, for you to have a quick glance.
Portfolio follow and copy
Investing your money requires making a rational decision on a continuous basis, although it is very difficult, we learn through experiences. Following the footsteps of a successful investor will not only help us reiterate our decisions but help us follow through on our mistakes.
3 commas also allow you to copy the portfolio of a successful investor such that you can also make the desired level of profits by investing in places which are showing a proven track record with other investors.
The customer support team is available 24/7 and helps you deal with all your issue at any time of the day. Users can also contact the support team by filling up a form and submitting a request at the ‘Help Centre’ feature. The team is quite active on Social Media and can be contacted through Telegram, Twitter and Facebook.
The FAQ section provides a range of well-defined solutions for common problems that traders may face. The clearly written guides help you navigate the entire platform with ease.
Potential of Earning through 3commas
The real question here is, can we actually make money if we entrust all of our trades to the trading bot? The platform is replete with some very amazing trading features, nevertheless, they may even lead to you losing your money.
The market is hyper-volatile, allowing the bot to take decisions based on only one strategy for a longer period of time may yield no significant result, in fact, may even lead to you losing your money. The actualization of features like “Stop Loss, Take Profit and Trailing profit/loss may increase the frequency of transactions, however adjusting to the market volatility becomes challenging if the trader doesn’t constantly revise his goals.
Consider scenarios where features like take profit and trailing take profit actually put a cap on your earning potential. This actually doesn’t translate into the kind of profit one expects from trading in the cryptocurrency domain. Despite these shortcomings, higher volume trades can still get your voluptuous amount of profits.
The 3commas have used both long and short algorithms that enable the contrarian strategies of selling higher and buying lower so as to generate maximum profit.
Getting Started with 3commas
- The first step involves signing up with the platform. You will need an email id which will function as your registered email for all future transactions. After setting your password, a confirmation link is sent to your email id which creates an account upon being confirmed.
- After you create your account, you will be directed to choose a bot, from simple, short, composite or composite short bots. You can choose one depending on your trading capabilities. Generally, the simple trading bot is the easiest to choose from and very quickly sets up.
- The next step involved choosing an exchange service. The simple bot works with Binance. Make sure your account has been connected via API and holds BNB. The BNB feature must be turned on.
- Post this,you can choose the trading pair that you wish your bot to trade from. You may now set limits to the amount of currency you will be using in your initial trades
- It is always a good idea to set a target profit. This allows the bot to work with volumes from a trading pair. Say you’re working with Bitcoin and Ethereum, it allows you to buy more from the profit to compensate for the falling prices in the other currency. This maintains your profit at the desired percentage.
- Choose your take profit type, which can be from base trade or from total volume. Once you’re done with this, choose a safety trade count, this allows the bot to stop transacting after facing certain losses. Also, choose options of telling your bot when it can begin executing safety trades.
- The last step is setting your start trade condition from options like Strong buy, Signal by, or Open Trade ASAP. With these few steps, you can finish configuring your bot. This can help both novice and professional traders.
Pricing Structure for 3commas
3commas is not free software. There are multiple trading bots which are open software based. They are free to download and customizable as per user requirements. 3commas provides its services for users depending upon the package they’re willing to buy.
It is initially free to use and try, after which you can choose one of their monthly packages.
The cost of a starter pack starts from $25 per month. A starter pack, however, provides limited features. It allows interaction with only one exchange service and five trading pairs. It also charges a simple bot trade commission of 50%
An Advanced Pack allows to more features as compared to the starter pack and hence is priced higher. It costs you $42 per month. The advantage of using an advanced pack is that it allows interaction with two exchange services and offers you all trading pairs. It operates on a composite bot commission of 50%
It is the priciest of the three packages and provides comprehensive services like integration with unlimited exchanges services and deployment of unlimited trading bots. It is priced at $84 per month.
This pack is generally for trading firms and conglomerates. It allows integrating custom features using 3commas API. The developers provide priority support to such users. The price may be dependant on the scale of usage as it is not mentioned on the website, but available on request.
A commission of 0.25% on the transaction amount is charged for each smart buy or smart sell created. The use of infographics, automatic balancing and portfolios are completely free for now.
The service charges the commission from your internal and not from the deposits on an exchange. You also get a joining bonus of $10 when you register on the platform for the first time. This $10 is used to cover their commissions only. You can also earn discounts based on referrals.
Whenever a transaction is initiated, the commission amount gets frozen in your account. Only when you successfully complete transactions like stop loss, take profit or panic sell, it is deducted from your account. If you cancel a transaction or it does not go through due to server error, it gets credited back to your account.
Loads of exciting features are expected to be added in the near future, with the development team showing serious signs of intent. There is a superfluous amount of exchange services that they’re looking to add. This includes Bitstamp, Yobit, Bitmex etc which will prove to be very beneficial in the long run.
Social trading options like CopyTradingBot feature which copies winning strategies will further be boosted by features like order books, new exchanges, copy traders etc and help increase its usefulness.
The Rise of Trading Bots
With of advent of technology, trading with cryptocurrencies has become easier than ever. However, it has become increasingly difficult to extract the right return on your investment due to the market being largely volatile and the rapidly falling prices of Bitcoin and other similar currencies.
Bitcoin traders are now presented with a plethora of services at their disposal to choose from, which has not only provided them with ease of use but also provided advanced software which can capitalize on every fluctuation in the market. Trading bots are one of these software packages which run on advanced algorithms and protocols that cash in on every surge in pricing and help users manage their assets in case of dwindling prices.
Trading bots perform continuous transactions on your behalf depending upon your investment strategies. Their actions are based on price, market volume, trading frequency and other parameters, which help them make decisions at the spur of the moment with minimal human intervention.
These bots work round the clock to assess the market at every regular interval. They resonate with your choices and implement your trading strategies seamlessly, completely relying on empirical data. These qualities have resulted in the market being flooded with a number of trading bots available for users to choose from.
How well do trading bots work?
Despite being enriched with multiple capabilities and protocols, their efficacy is yet to be ascertained. A lot of these bots have proven to be prone to errors. Zenbot, an open source trading bot displayed different results for virtual and real trades, in the same trading situations. Some bots are also incapable of high-frequency operations thus failing to fully capitalize on the earning opportunities. Understanding all the pros and cons of trading bots, helps us evaluate its usefulness for our trading capabilities. A thorough evaluation of every aspect of the features provided by the software needs to be done. This article attempts at providing a complete review of one such trading bots which has become largely popular since its inception: 3commas. Having a complete walkthrough will not only help users have a fair idea about 3commas but also help them to assess other trading bots in a similar fashion.
3commas is carving a niche for itself in the cryptocurrency trading market. It has turned ripples into waves by providing users accessibility like never before and trading features which provide a hassle-free experience. Majority of the trading bots are very difficult to use and may confuse a novice trader.
They may turn out to working differently than expected, and the UI/UX may not provide a thorough satisfaction. 3commas is doing well because it eliminates all these problems. It is very easy to use and set up, apart from this it also performs with great reliability as compared to other trading bots. System integration provided by 3commas is simply amazing and works on all major exchange platforms like Binance, Coinbase, and Huobi.
The trading bot allows both novice and expert traders to venture fearlessly into the trading market and help them maximize their trading efficiency by working in a twenty-four-hour market without any fear or potential inefficiencies. The Dashboard is well designed, hence navigating through it becomes very easy. A number of options with regards to configuring your trading bots are available.
There is detailed analytics present on the bot’s performance which helps you provide immediate visualization of the trading policies that you have adopted over time and the yields obtained from it. There is a good amount of instructional videos available on the website which covers most of the problems that traders may face.
The incorporation of features like Social trading further adds impetus to its growth. Portfolio creation and tracking make the software the one to look out for. The help options and the ease of getting in touch with their customer representatives depict strong ethical and professional morals.
The price tag, however, is one of the downsides of the software as a variety of platforms available on the internet, perform bitcoin trading via bots for free. This discourages a user from availing such service for the first without any first-hand information about expected profits.
In conclusion, one can say that it packs a solid performance combined with a great user interface and customer-centric services. This makes it an interesting choice for anyone who is looking to commence trading cryptocurrencies. You can get great value for your money by investing in this trading bot even as a first-time user. In spite of that, if you’re unsure of your trading strategies and capabilities and the duration for which you wish to stay in the market, it may be wise to look for other options that are available for free and try them out before investing your money in trading bots.