Crypto Trading Platform Implements Automated Bots for Major Crypto Exchanges

Having emerged in September 2017, 3Commas, an international crypto trading startup, has introduced a series of automatic trading bots for Binance. The company also has revealed its plans to launch the bots for all other major supported exchanges, like BitFinex, Bittrex, Bitstamp, KuCoin, Poloniex, HitBTC, Cex, Huobi and YOBIT in due course.

The company says the bot is designed to help traders create passive income, while providing safety mechanisms to prevent losses, in case the market goes down.

Choosing the investing tools

According to 3Commas’ website, there are currently over 30,000 active traders on the platform with a total daily volume of transactions worth $10 mln. The service offers Smart-Trade, Indexed Portfolios and AutoTrade Bots.

For instance, the Smart-Trade set enables users to apply concurrent stop-loss and take-profit account settings, a feature that is currently not available in any other cryptocurrency exchanges, the company says. 3Comma representatives told Cointelegraph that trailing features complement the smart-trade function and follow price-action while users can set the percentage deviation to further reduce risk and maximize profits.

For passive investors with a longer investment horizon, the company developed the Portfolio Analysis feature that allows building indexed portfolios by selecting any number of tokens and placing market orders with one click.

As the team reported to Cointelegraph, all risk indicators (Sharpe, Sortino, etc.) and back-tested, 1-month, performance data are automatically displayed while the entire index can be automatically rebalanced to maintain the original asset allocation.

Tips on the autotrade bot

3Commas’ platform presents its autotrade bot as a tool to minimize risk and receive secure passive gains. Once connected to the exchange via an API, the bots can be launched on one or up to 99 trading pairs concurrently using the default settings or can be individually customized to suit each trader’s appetite for risk, trading skills and available crypto funds.  

According to a recent review posted at Bitcoinist.com, 3Commas supports two types of trading bots – simple and complex. A simple trading bot only involves one trading pair while a complex trading bot involves multiple trading pairs.

After making a few manipulations and following set instructions, users may go to 3Commas’ menu and create their first bot by themselves. The minimum requirement to start work with the 3Commas bot is to have a Binance account connected to 3commas via an API, says the 3Comma's blog at Zendesk.com.

Secure trading mechanisms

After getting the buy signal, the bot buys the chosen coin and immediately places a sell order. In case the price drops, bot automatically places a safety order, which is lower than the last buy-order price every X percent, says the company’s blog.

This means that the bot is “averaging” the buy price and moving the TakeProfit lower, not losing any potential profit. Therefore, if the price is going down, the bot is making additional purchases and “averaging” the buy price, that decreases the sell order in order to sell the coin right after the first bounce and take all the potential profit.

“We strongly recommend you to use the minimum possible volumes and percent of profits in first trades to understand how the bot works and how different settings impact on its workflow”, warns the company’s blog. Not only the volume, but time of purchase depends on these settings as well.