3Commas Review: An In-Depth Look at the Trading Bot Service
3Commas provides access to a variety of trading tools to improve your crypto trading strategy. When used properly, these tools can maximize your profits and reduce your exposure to losses. Of these tools, 3Commas is best known for their trading bots. In this 3Commas review, we explore the functionality that makes this platform so powerful.
Trading bots have gotten a lot of attention lately due to advancements in their algorithm and growing success rate. Nobody can watch the market 24/7, and the volatile nature of the crypto space makes it possible to take losses or miss opportunities in seconds. Luckily, a well-programmed trading bot can take the reins while you sleep, eat, or do whatever other non-crypto activities require your attention.
As a 3Commas user, you can automate your bots in many ways, including duplicating the actions of successful traders, automating trading orders, and tracking top portfolios. These handy protocols allow you to preprogram your trading strategy based on loss and gain percentages, price points, or a variety of other market conditions. The 3Commas trading bot has over 33,000 registered users with around $10 million in daily trading volume.
Trading Bots: Things to Consider
Trading bots aren’t perfect, and many people argue that they are manipulating the price of cryptocurrencies. There is evidence to support this theory. In June 2017, Ethereum experienced a flash crash from $319 to $.10 on GDAX due to a flood of trading bots initiating stop losses. Despite the risks posed by these protocols, trading bots are here to stay.
The Miami-based 3Commas cryptocurrency platform entered the crypto market in 2014. Within four years, the platform managed to become a major player in the crypto space. The developers behind the 3Commas crypto management system made strategic partnerships with many well-known exchanges including Binance, Coinbase, Bitfinex, and Huobi. These partnerships make it possible for 3Commas trading bots to operate on some of the largest exchanges in the world via API protocol.
3Commas features a web-based platform that you can access from any internet enabled device globally. You can access different bots to perform different actions including: simple, composite, stop loss, short, and take profits. You can also create your own unique trading strategy via the user-friendly interface.
Your trading bot works non-stop monitoring the market awaiting your trading criteria. 3Commas offers powerful tools to their trading bot users. These tools include unique features such as trailing stop loss and trailing take profit. Below are how these features increase the effectiveness of both stop loss and take profit features.
In a traditional stop loss scenario, you preprogram a loss percentage. When that percentage is reached, your bot will sell your crypto. For example, let’s say you purchased Bitcoin at $10,000. You set your stop loss at 10 percent below your buy-in price. If Bitcoin’s price drops to $9,000, your bot automatically initiates a sell order. Stop losses are extremely powerful, and using one can save you from huge losses.
Trailing Stop Loss
The trailing stop loss feature takes additional factors into the equation. These factors can include any gains achieved. Let’s use the same example as before, except in this scenario Bitcoin first realizes some gains throughout the day prior to taking losses. The trailing stop loss feature automatically readjusts your 10 percent stop from your buy-in price to the highest- value point in the day. This way you still receive your gains made throughout the day.
The take profit feature automatically sells your holdings once a predetermined percentage of gains are realized. You buy a Bitcoin for $6,500, set your take profit feature for $6,600, and if the gains are realized, your bot will take your profit. The system helps out significantly but it often leads to missed profits. What if that $6,500 Bitcoin goes to $8,000? Now, you just missed out on an additional $1,400 in profit.
Trailing Take Profit
The trailing take profit feature takes into account the price trends of the day during the sale of your crypto. If your bot is set to take profit at 10 percent, this feature will take your profit at 10 percent of the highest point of the trend. Using the previous example, you sell your $6,500 Bitcoin for $7,200. You make $700 in profit instead of $100.
Sign Up Process
The sign-up process is relatively painless. The company asks for your email and password initially. You then need to confirm your account via a clickable link in your email. Once you click the link you are taken to your account setup page where you are provided with four steps.
Connect to Exchange
Here you will integrate the 3Commas platform into your exchanges. The process requires you to hit the connect button and fill in the relevant information, including your API, for the exchange you want to attach.
The next step in the process is creating your stop loss and take profit functions. The platform will manage your crypto portfolio across multiple exchanges in real-time. The smart trade feature simplifies the monitoring process for crypto traders by locking in your profits and reducing your losses.
Automated Trading Bot
If you have a Binance or Huobi account you can earn some extra income with the automated trading bot feature. You will need to enter at what percentage of loss or gains you want your bot to activate. You can also set up the more advanced features of your bot in this section, such as the previously mentioned trailing stop loss and trailing take profit functions.
Invite and Earn
The final step in your 3commas account setup is inviting your friends to join. The company offers an impressive referral rate, and your friends get a 10 percent discount off their 3Commas service.
There are some costs associated with these helpful services. 3Commas offers four subscription plans for you to choose from. The plans range from new crypto users, all the way to enterprise level operation. Below are the four plans and what they include.
This plan grants you access to the smart trading terminal, unlimited exchange integrations, and error and cancelation notifications. This level of subscription doesn’t include bots.
The Advanced plan includes everything listed in the Starter package plus access to simple bots, custom TradingView signals (proprietary trading interface), and a portfolio management interface.
The Pro plan includes everything in the Advanced plan plus access to simple, composite, and Bitmex bots. You get full portfolio management software and access to custom TradingView Signals.
The Enterprise level subscription includes all of the bots and custom features on request. Pricing for the service isn’t listed because it is tailored to each client. You can expect that it will be more than $99 per month.
Once you pick your subscription you will be asked how you want to pay for your account. The three choices available are Advcash, Crypto via CoinPayments, and Yandex.Checkout. You can use a credit card, money transfer, and even good old fashion crypto to pay for your 3Commas account.
3Commas: Trading Tools for the Future
3Commas continues to pioneer the trading bot sector. Love’em or hate’em, trading bots are here to stay, and 3Commas offers one of the best in the industry. These helpful algorithms reshape the crypto market and provide traders with more control over their earnings.
Now that you are familiar with trading bots, be sure to check out how hackers used trading bots to attack Binance.
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ABOUT THE AUTHOR
ABOUT THE AUTHOR
David Hamilton aka DavidtheWriter has published thousands of cryptocurrency related articles. Currently, he resides in the epicenter of the cryptomarket – Puerto Rico. David is a strong advocate for blockchain technologies and financial sovereignty.