Best trading bot with Binance and 3Commas
The 3Commas trading bot for Binance provides users with an advanced management interface to enhance their trading on this cryptocurrency exchange. With 3Commas’ state-of-the-art trading bots you can create your automated trading strategies based on a range of advanced order types that are not offered by the exchange itself.
Binance is a cryptocurrency exchange that has achieved a high degree of popularity. It is one of the top crypto exchanges for trading Bitcoin, and also has a large range of altcoins available for trading. It is known for its low trading fees and low spreads, making it an especially popular exchange for high-activity and algorithmic crypto traders.
3Commas is a web-based crypto trading management platform that provides an advanced interface for a large number of major cryptocurrency exchanges.
Using your 3Commas interface and your API key from Binance you can develop a variety of algorithms for automated crypto trading strategies, including long, short, composite (multi-pair) and QFL (Quickfinger Luc) bots.
With this guide, you will create a multi-pair long bot on USDT markets.
Step 1: Sign up to Binance
Open a Binance account
Step 2: Enable advanced security two-factor authentication (2FA) on Binance
Go to Profile > Security then enable Google Authenticator then complete the steps to enable 2FA
Note: I recommend using Authy as it comes with more advanced options, including multi-device, simpler backup and restores in case you lose your device.
Step 3: Create an API key on Binance
Go to Profile > API management, give the API key a label, press "Create". Follow the verifications instructions, press "Send" to receive passcode on email then enter your 2FA passcode.Ensure that "Enable Withdrawals" and "Enable Wallet Transfer" are UNCHECKED so this API key cannot funds transfer out of the wallet.
Note: Leave this tab open so you can come back to copy the API key and API secret information into 3Commas.
Step 4: Sign up to 3Commas
Open a 3Commas account. After registration, you will have 7 days trial period, so you can to use the service for free on the “Pro” plan with all available features. We will use a composite bot, which can trade multiple pairs with one configuration. This type of bot is available on “Pro” subscription only.
Step 5: Enable advanced security two-factor authentication (2FA) on 3Commas
Go to Profile > Settings then complete the steps to enable 2FA
(I recommend using Authy as it comes with more advanced options, including multi-device, simpler backup and restores in case you lose your device)
Step 6: Connect your Binance account to 3Commas
Go to My Exchange, select Binance as the exchange, give it a name like "Binance Personal", paste the API Key and API Secret.
The trading bot
Step 7: Create the bot
Go to DCA Bot and press button "+ Create Bot", use the advanced options, not "Gordon"
Select "Composite" so we can select multiple trading pairs or "Simple" to select just one.
Select the pairs the bot can trade, I recommend starting with USDT pairs, for example top 5 or 10 coins by market capitalisation, excluding stable coins. Do not include leverage tokens, BTCUP, BTCDOWN and others for now.
Max active deals
Start with 3 or 5 then make higher or lower demanding on what amount you'd like the bot to trade with.
Pro tip: You can run multiple bots, by restricting bots to a portion of the total amount.
We'll select "Long" here, the bot will buy with the expectation of the price going up then sell.
Determines which currency will be used when you make a profit. Quote (Symbol on the right of the pair USDT), Base (Symbol on the left of the pair)
For example, you buy one (1) BTC at $100 then bot closes trade when BTC has reaches $125. If you selected "Quote" as the profit currency, you'll have $125. If you select "Base", you'll have $100 and 0.2 BTC, exluding trading fees. Selecting Base can be interesting to accumulate units of a coin, whilst recouperating your intial investment.
Base order size
At least 100 USD. Adjust depending on how much you'd like to make available to the bot.
Safety order size
Use the same value as base order size.
Start order type
"Limit", which ensures you're setting the maximum price the bot can buy at.
Deal start conditions
Perhaps this is the most important setting of all. When should the bot buy? Under what conditions should the bot open a new order? When you're getting started, use "Trading View", "Cumulative", "Buy". We recommend testing different Deal start conditions until you find what works best with the trading pairs selected.
Your target profit should be small (1-2%) so you're entering the trade and exiting within a short timeframe. For the trailing deviation, divide by 10 your target profit (%).
I don’t use Stop Loss in this bot so it's optional but you can select when to close the trade if the price goes against you.
The second most important setting of all. Choose here when new orders will trigger if the price goes against you. If the price went up after your initial buy then you won't need those. However, if the price goes down the bot buy more to bring the average buy price down.
Step 8: Save your bot, double-check every setting
Press "Create bot", check on the summary page that all the settings are saved correctly. Trades will soon trigger from a signal, wait for the first trade to ensure all is working correctly. You can create multiple bots, different deal start conditions to determine what works best for you.