My 3commas Crypto Trading Bot Setup And System (Blueprint for Fast Profits)
**This is for educational and entertainment purposes only. This is not financial advice. I'm a tow truck driver not a financial consultant.**
AUTHOR DOES NOT USE LEVERAGE WITH THIS METHOD!
I have been Using 3commas trading bots for a couple of months now. I started out not really having a clue what I was doing. I got wrecked when bitcoin did a 55% correction in May of this year and had to kinda work from there to recover. After working with the bots, tweaking and adjusting, I have come up with a strategy and a few bot configurations that may work in both a bull and a bear market.
But before we get into the configurations and strategies I want to first tell you the currencies I trade and why. I mostly focus on trading Bitcoin, Ethereum, and Litecoin. At this point those three coins are really the only ones I care about. Why? Because they are not quite as volatile as the rest of the coins on the market, they are the oldest and/or strongest coins on the market, and in my opinion these are the 3 coins that I feel comfortable saying will be here 10 years from now. Bitcoin is the King of coins, Litecoin is Identical to Bitcoin but is several times faster in transactions giving it a tremendous amount of leverage over the other coins even though it has not really caught on yet. And then we have Ethereum. The talk about ETH at the time of this blogpost is that it is expected to surpass Bitcoin in value very soon. If that was not enough to grab your attention just look at how many coins are being developed on the Ethereum network. As I read coin descriptions so many of them start out like "such-and-such coin is an ETHEREUM COIN that does...." I do think that most of these other coins are going to fail as the market morphs and grows, but I also believe that some will prosper. And as they prosper ETH will grow and prosper.
I do need to add that I do also trade coins in one composite bot in order to build my USDC holdings. These are altcoins, and the bot is set up to make very fast trades, and take the profits in USDC. I do this because very soon USDC will be paying 4% apy. This is a great return on money that simply sits and draws interest. You won't find that kind of return at any bank. I do recommend setting up a bot for that purpose, but I am not a big fan of putting a whole bunch of money into coins outside of what I call the Big 3.
So, let's talk about my strategy next. First and foremost, I do not recommend using more than 75% of your account balance towards your total needed bot usage. In other words, if you set up a bot that has 10 safety orders as the price drops and it takes $1000 to fill all of those safety orders, then your account needs to have a minimum of about $1350. Ideally you will want to have half of your cash in reserve. Why? One of the rules of trading is to never be 100% in the market at any given time. If there is a big drop and you are fully in the market, you have nothing to trade with unless you take a loss and sell some of your investments. I just don't like to do that. I'd rather be a bag-holder until the market returns, and use my reserves to trade for the recovery time. Yes, at that point you will be at or near 100% in the market, but I am more comfortable having the extra funds in there after a big drop than before. Ok, that's the first rule; never invest more than 75% of your funds. Ideally not more than 50%. Use your judgement on that though. Lets move on.
The next rule in my strategy is to always compound your earnings. Now that was something I had trouble figuring out how to properly do in the beginning because I like working with exact numbers. I like to make 1% on a $1000 profit and keep compounding that over time, but the way the bots are structured makes it nearly impossible to accomplish that. However, I did work out a system on my bots to make compounding work out, just not exactly the way I wanted t to work out. But, it still works ok. How you accomplish compounding with the bots is simply by adding a portion of your profits to the buy order and the safety order. My system for doing this is as follows:
1. On my calendar I have a schedule of Monday, Wednesday, and Friday in which I add some of my profits.
2. I add .25 cents to my buy order and .50 to my safety order. The way my bots are configured this gives me around $10 added to the overall bot. This does not use even half of my daily profits at the current time. I don't want 100% of my profits going into the bot as I am always wanting to also build my reserve. You can play around with the amounts until you find what works for you.
3. The plan is to build the bots for these coins (including the USDC bot) indefinitely.
The configuration I have on my bots right now is for the bull market we are currently in. You have to realize that eventually the market is going to tank and your bots will max out and you will be stuck in your trades for awhile. How long? Could be a few weeks, a few months, or even a few years. This is why I really only want to trade coins that I wouldn't mind holding long term if the market took a dive. You should consider that in all of your trading. So here is an overview of how my bots are setup. I'll detail it in the next section. First off when I start a new bot I start it with a $10 buy order and a $20 safety order. The bot will have a 5% price deviation and 10 safety orders. That means if the bot buys Bitcoin at $41000 it will make a safety order of $20 at every half a percent drop in price until the price hits $38950 and all safety orders are filled. . I do not do a price volume increase. I don't need to since the price deviation is so low. I set my take profit at 1% of the total volume. When the bot closes the trade I have it set to wait 10 minutes before opening a new deal. I do that to help reduce the chances of me buying at a high flash spike.
So let me walk you through the bot setup step by step:
- In your 3commas account on the left sidebar of the page click on DCA BOT.
- When that page opens go to the top right and click +CREATE DCA BOT.
- Under "NAME" you will name your bot.
- BOT TYPE is "simple'.
- Under "PAIRS" type in BTC/USD (for this example.)
- STRATEGY="long"
- PROFIT CURRENCY If you want to build up you USD click QUOTE(USD) or if you want to build your Bitcoin click BASE(BTC).
- BASE ORDER = $10 (You can choose lower but it will only be pennies).
- SAFETY ORDER = $20
- 'Start order type" should always be "limit"
- DEAL START CONDITION = "open new trade asap"
- TAKE PROFIT = 1% (I turn off "trailing" and "stop loss"
- Under Safety Orders MAX SAFETY TRADES COUNT is 10
- MAX ACTIVE SAFETY TRADES is 10
- PRICE DEVIATION is .5
- SAFETY ORDER VOLUME SCALE is 1
- SAFETY ORDER STEP SCALE is 1
- COOLDOWN BETWEEN DEALS is 600
This bot will require only $210. This will get you started. If you have a larger account make the bot bigger if you like.
Before I end this post I want to give you some simple exit strategies in the event the market drops like it did in May and you get stuck in these trades. If you have heeded my words and have held back 50% of your account there are 2 things you can do. You can add funds to one bot as the market fluctuates. Add them as the coin price is low. Add little by little catching the smaller dips. Eventually you will be able to sell at a profit. I prefer option number 2. That option is as follows. If I have kept half of my funds available all I have to do is copy my bots and start them here at the bottom of the dip. They will start running and making profits. I do suggest maybe giving them a 10 or 15% price deviation for awhile. This will help to cover you incase the market is turning bearish longterm. I've seen some people go even deeper that that on their price deviation. Play with the numbers and find your sweet spot. Just remember, if you run this bot you will make money everyday while the market is in a strong uptrend, and it won't take much of a dip to turn you into a bagholder for a few days. It happens. markets get sluggish. Don't panic if you get stuck for a week or two. Don't turn on secondary bots or add funds prematurely. It takes time to learn the nuances of the market, and you will never be 100% correct 100% of the time. It'll come eventually. You will get stuck, and that is when you will learn best how to handle the situation.
I hope this has been helpful. Be a blessing to God! BYE!!
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