3commas is a favourite among many active crypto traders. You can set up your own smart trade and connect your 3commas account to your favourite exchange. For this tutorial, I will be using Binance as an example of an exchange.
Step 1. Sign up to 3commas.
Step 2. Connect to your exchange through an API. Inside Binance, you will find API inside the dashboard. Click create new API.
Step 3. Inside your 3commas dashboard, go to the exchange section. Click on the exchange of your choice. Name your exchange and paste in your API and Secret key from your exchange.
Step 4. Now you will see your funds in the top right corner inside 3commas. Make sure you have some funds inside your Exchange before you begin your smart trade.
Step 5. Click on smart trade and choose your trading pair.
Step 6. Set your buy price and how much of your funds in the exchange you want to trade with. It will give you the following option: 100 %, 5 %, 10 %, 25 %, 50 % of your trading funds. You can also adjust this to the exact number you want to trade with.
You can choose from limit, market or conditional.
A limit order is a maximum price you are willing to execute the order, thus you can not add trailing here.
A market order is set to execute the order as quickly as possible at market price and it allows for trailing.
A conditional order means you set your the price you are willing to buy it at. It allows for trailing. This method could leave your order on the books for a long time as it might not reach the price you are asking for.
What is trailing buy?
This option lets you set a percentage that allows the price of your order to continue to go down and the market order will be placed when it goes back up to the percentage you set.
With this tool, you have a chance to buy at a better entry and also get out of a trade. If the coin keeps dropping, it might be a good idea to exit the trade all together until you have a better grasp of the price action.
Step 7. Set your take profit level. You can choose from limit or market.
A limit sale is a set price you want to sell at. It does not allow for trailing.
If you choose the market, you can add trailing. This means, if your crypto shoots to the moon, the trailing lets your ride the green candle. Let say you set your profit level to 10 %, but your coin went up 30 %. By setting trailing then your stop/loss moves with it. Once the price comes down, you sell when it reaches the trailing limit. Let say you set trailing at 2 %, it means it will sell when it comes back down 2 %.
Note that setting trailing does come with some risks. Watch the video I have linked to at the end of this article.
You can also split your profit level targets.
Step 8. Set your stop loss. You can again choose from limit or market order. If you choose market order you can set a trailing. You can also set a stop loss timeout. This means, if your conditions are met for sale through a sudden drop in price action that will soon correct itself, the stop loss timeout will prevent you from selling at these times.
You can choose between Bid, Ask, and Last.
Bid is what someone is willing to buy it at.
Ask is what someone is willing to sell it at.
Last is the last transaction price.
What is traling stop loss?
Trailing stop loss means the trailing stop moves up when price action goes up. A 10 dollar increase in price means the trailing stop also goes up 10 dollars. If the price begins to drop, the stop loss does not move. The trailing only moves when the price goes in your favour.
What is the difference between Take Profit and Stop Loss?
Take profit lets you close your profitable trade at the price you set.
A stop-loss order lets you close a losing trade at a certain price to limit its loss.
How to trade on 3commas with a large amount
Trading in cryptocurrencies is risky business. Always do your own research before trading in cryptocurrencies.