While striking it rich by trading is easier said than done, automatic trading bots developed by 3Commas are set to change the game.
Striking it rich by trading seems to be a pursuit of many but it takes a lot of agility to actually outmaneuver the markets. It is easy to say buy low and sell high, but timing the markets is a skill that seems to be elusive. New traders are best served by setting realistic profit targets and not trying to getting carried away by greed. Then again, if this advice was easy to follow, we would all be millionaires by now.
Perhaps, the ideal solution would be to minimize interaction with the trading interface itself, so as to limit the chances of getting carried away. In this respect the coming age of the automatic trading bots is kind of a boon to investors and traders. Whether it is the effort of getting reasonable returns from an investment, or a try to limit the downside, these bots can be a good adjunct or even the primary gateway to the markets for both expert and novice traders.
Just Automate and Forget about It
Whether being used for overcoming the lack of objectivity in trading or maximizing gains in a twenty-four hour market, a trading bot can be useful in a variety of situations. 3Commas have an automatic trading bot that can execute trades on exchanges such as Bittrex, BitFinex, Binance, Bitstamp, KuCoin, Poloniex, HitBTC, Cex, GDAX, OKEX, Huobi and Yobit. This bot is simple to set up and can be used even by complete novices. Anyway, there is a video instruction manual available, which explains how to go about doing it.
There are basically two types of bots available, the Simple Bot and the Composite Bot. The Simple bot is ideal for those who are just getting used to the idea of automating their trading. As long as you have an exchange account which is connected to 3Commas through the API and the account has BNB and BNB fee turned on, trading is a cinch. Just create a new bot by filling up the required parameters and choose an exchange to trade. If you have trouble filling up the parameters, there is even a handy reference available. As soon as the bot is set up, you are ready to trade.
How to Profit From the Automated Bot
After a bot is set up, it starts to offer cryptocurrency for sale on the market of your choice. Users can carry out both long and short trades. In case of short trades, the price rise in the currency will execute the sale of the underlying cryptocurrency when the designated profit level is reached. However, if the market goes the other way around safety orders are placed so that the bot makes purchases every X%. This allows for dollar cost averaging and traders can exit on bounce back because the TakeProfit target is moved lower. There is a long algorithm through which the contrary strategy of selling higher and buying lower can be used to generate profits.
A Comprehensive Trading Solution
Apart from the trading bots, 3Commas customers can also use trading terminals with the option to use stop loss and trailing stop loss to generate gains. The trailing stop loss is particularly interesting as it allows for dynamic stop loss setting.
3Commas are also offering take profit and trailing profit options as well as bid price follow, ask price follow and true price follow (under development) options. These power trading tools allow traders, who want a more manual approach to trading, limit their exposure to negative returns and to maximize profits.
3Commas has received increasing recognition by investors and there are already 22,000 active traders and a daily trade volume of US$ 6 mln on the platform. A bitcoinist.com article explains the acceptance of 3Commas by crypto traders the following way:
“The reason for the platform’s growing popularity, of course, is the wealth of tools and features it offers that has resulted in active traders making an average monthly profit of more than 15%.”
While when it comes to trading results, they state:
“Results may vary, of course, but on average the trading bot generates a daily profit of around 1.5%”
3Commas has brought innovation to crypto trading and greatly simplified the trading process. The automated bot, the Simple bot particularly, makes crypto trading far easier for those, who have never used a bot before, while also not abandoning the pro traders, who are offered pro-grade featuresбsuch as SmartTrading, Composite Bot and others.