What is 3Commas?

If you’ve been around the cryptocurrency space for a while, you may have definitely heard about 3Commas. The name refers to a renowned platform in the cryptocurrency market that offers advanced tools aimed at streamlining the trading process. This guide will delve into the basics concerning this crypto trading bot platform and some of its key features. In addition to 3Commas’ portfolio management capabilities, we will also learn about the founding team behind it.

Welcome aboard!

Introduction

As crypto trading becomes increasingly popular, interested participants are always on the lookout for trading strategies. This has made automated trading bots a popular addition in trading tools in recent years, and it’s easy to understand why. Who wouldn’t want to have a coterie of trading bots working for them and make money as they relax?

While they may not make you an overnight millionaire, crypto trading bots are now a valuable assistant for many traders. And this is where crypto trading platforms like 3Commas, one of the leading crypto bot platforms, come into play. 3Commas was founded in 2017 by Egor Razumovskii, Yuriy Sorokin, and Mikhail Goryunov in Tallinn, Estonia. The aim was to provide traders with a platform where they could set up automated crypto trading using bots. 

3Commas is a cryptocurrency trading platform designed to provide traders with tools that can help them automate their trading strategies. When used on supporting exchanges, the tools follow preset rules that allow users to execute trades at defined intervals 24/7. Additionally, 3Commas utilizes smart trading tools to offer users portfolio management solutions. 

While numerous other platforms are offering a similar solution, the 3Commas automatic bot trading system has become quite popular. Due to their expertise, the development team has created one of the leading crypto trading platforms of our time. Using 3Commas trading bots saves a lot of time, as they can execute hundreds of trades, which is impossible to do manually.

Moreover, profitability at 3Commas is more consistent compared to manual trading since trades follow a predetermined strategy. Using 3Commas automated trading bots eliminates FOMO and FUD from the equation, two factors that destabilize most traders.

Let’s now examine the main features of the 3Commas platform in greater detail.   

Core Features

Supercharged DCA Bot

3Commas’ supercharged Dollar-Cost Averaging (DCA) bots feature automated capabilities that enable traders to manage risk and maximize profits intelligently. The bots have the capacity to adapt to real-time market environments, unlike the fixed-interval DCA strategy. They can utilize market analysis to determine when to enter or exit positions more optimally. Among its core features are automated reinvesting, which automatically increases the size of subsequent orders during a profitable run by calculating profits and reinvesting in the next trade.

The Dynamic risk reduction feature evaluates current profit and loss and scales down order size once the bot experiences a series of losing trades. This automatic reduction helps to minimize capital exposure in the event of a downturn. The DCA features an enhanced analysis tool that utilizes real-time data to identify market opportunities. A few examples include Relative Strength Index (RSI), Bollinger Bands (%B), and Moving Average Convergence Divergence (MACD)

Backtesting

3Commas offers a dynamic backtesting feature that utilizes historical data to enable traders to evaluate and refine their trading strategies. Its key features include Strategy Simulation, which allows traders to simulate what their trading bots would have done in similar market conditions. The performance analysis feature helps users strategize effectively by generating visual profit and loss, as well as risk/reward graphs. The backtest feature factors realistic trading conditions, including slippage and candlewick fill logic, exchange fees, and actual fee tiers. There is a Close after Timeout that evaluates strategies that automatically close trades after a preset duration.

Signal Bot

The 3Commas signal bot utilizes external signals from TradingView or webhook triggers, integrated with various exchanges, to execute trades automatically.  The core feature involves integrating popular charting platforms to execute flexible configuration for entry or exit and advanced risk management. It also utilizes deviation and margin controls, as well as detailed performance trading, to analyze profit and loss and trade history. The bot automatically analyzes order size and leverage, supporting both spot trading and futures trading with a paid plan, even for demo use.

GRID Bot

The 3Commas GRID bot is designed to make profits during market volatility by automatically buying low and selling high within a user-defined price range. The bot’s key features include multiple automated strategies, such as Rising, Stable, and Reversal, for different market conditions and predefined price ranges. The GRID bot also has trailing functions that can capture trends, track orders for active and closed orders, and monitor profit and efficiency. The bot operates 24/7 to generate earnings without requiring constant monitoring or interference.

Portfolio Management

The 3Commas portfolio management tool enables traders to manage, track, and analyze their crypto holdings effectively across multiple exchanges from a single dashboard. The feature incorporates monitoring performance, viewing portfolio allocations, or connecting with their own portfolios to learn from other investment strategies. The tool integrates the platforms’ automated trading bots, like GRID and DCA bots. This helps support non-custodial security, allowing users to retain control of their assets.

Multi-Client Portfolio Management

The 3Commas multi-client portfolio management tool is a feature-rich asset management platform. The tool is designed to enable professional traders and asset managers to use a single unified dashboard to oversee and execute strategies across multiple client portfolios. The platform also offers additional features, including secure API management and bulk automation for deploying a strategy across multiple accounts. Additionally, it facilitates automated client reporting and fee calculation, as well as compliance tools to meet institutional requirements.  

Strengths

The strengths of 3Commas are explained:

Easy Integration: The process of setting up and integrating 3Commas with supporting cryptocurrency exchanges is straightforward. The platform utilizes SSO or API, enabling users to connect their exchange accounts easily. Once connected, the bots automatically execute trades on their behalf, eliminating the need to transfer funds from the exchange.

Automated Trading: 3Commas features dynamic trade automation tools, including Signal Bots, DCA Bots, and Grid Bots, that enable traders to run various market strategies automatically. Users don’t have to monitor the market, unlike with manual trading constantly. The GRID bot can automatically buy low and sell high; the DCA bot manages an average entry process when markets are down. On the other hand, Signal bots use external signals to execute trades.

Multiple Exchange Support: 3Commas currently supports over 14 leading cryptocurrency exchanges, including Coinbase, Kraken, Bybit, and Binance, among others. Due to the platform’s broad market access, users can trade across various markets from a single dashboard without needing to switch between apps. This becomes a great time-saver, especially for traders managing multiple portfolios or numerous client accounts.

Advanced Features: Traders who prefer manual trading can access the 3Commas Smart Trade Terminal, which offers advanced features.  The platform enables users to manually place advanced order types that are not available with most exchanges. These include trailing stop losses, synchronized take-profit and stop-loss orders, or multiple take-profit targets.

Copy Trading: 3Commas has a copy trading feature that allows new traders to replicate the moves of experienced traders and share a portion of their profits. This is a win-win situation, as beginners can copy proven strategies while experienced traders monetize their expertise.  

Paper Trading: Paper trading is a demo trading account that allows new users to practice different strategies in a simulated environment that doesn’t use real funds. The platform funds demo accounts with about $500,000 worth of virtual crypto funds. This amount is more than enough for newbies to test different bots and strategies before going live.  

Weaknesses

The Weaknesses associated with 3Commas are explained:

Potentially Confusing Setup: Users must connect their exchange accounts with 3Commas using API keys to utilize 3Commas effectively. This requires being able to configure bots using correct strategies in addition to carefully adjusting trading parameters. The process could easily overwhelm new and some existing users, as it require changing specific settings to match market conditions. The process can be effort-intensive and time-consuming, and could complicate the initial setup.    

Steep Learning Curve for Newbies: 3Commas is packed with advanced features and trading tools that could easily intimidate a new user. From trading bots to trailing tools, copy trading, Smart Trade, and multiple exchange integrations. Starters and individuals entering the crypto space for the first time may find these tools, designed to automate trades, overwhelming.  Beginners who don’t take the time to learn how everything works together can easily make expensive mistakes.

Relatively High Subscription Costs: Compared to competitors, 3Commas’ subscription plans can feel expensive. Some of the platform’s standout features are locked behind paid subscriptions, which may be less appealing for casual traders or those with smaller portfolios. New traders need to weigh the opportunity cost of these subscriptions against lower-cost or free alternatives from similar platforms.

3Commas is Ideal For

Algorithmic Traders

Algorithmic trading, also referred to as algorithmic trading, is popular in stock, forex, and commodities markets and has made inroads into crypto trading. While it has been a niche area for tech-savvy individuals, the entry of trading bots like 3Commas is changing that. With improved exchange APIs, growing institutional adoption, and the changing regulatory landscape, automation makes more strategies accessible.

3Commas trading bots help traders without coding experience analyze data and execute trades automatically in relation to price movements. They also facilitate strategies like arbitrage, market making, and high-frequency trades for potential high ROIs with slight emotional bias.

Advanced traders executing on TradingView

The 3Commas trading bots also work well for advanced traders who use external signals, such as TradingView alerts, Java and Python scripts, and PineScript, among others. It also benefits traders using other tools, like on-chain and sentiment analysis, or automators that can send trading signals from relevant posts via webhook integration.

3Commas enables traders to link TradingView strategies and technical indicators, allowing for automatic buying and selling to occur once predetermined conditions are met. This approach works exceptionally well for advanced traders who can utilize customized indicators or signals to automate their trading. The feature supports multiple target profits, running short and long positions, and scaling entry orders.

Semi-Pro Traders Seeking Consistent Income

Smart Trade bots by 3Commas enable semi-professional traders to use customizable approaches using tested DCA/GRID methods. As a result, the users can set their own crypto trading strategies using the platform’s advanced parameters and conditional rationality. Furthermore, the systematic use of DCA bots at regular intervals helps to reduce the impact of market volatility and smooths out price fluctuations over time. The result is the implementation of tried-and-tested strategies with new approaches to give you an edge over those using manual systems.

Professionals Handling Multiple Client Portfolios

3Commas offers built-in portfolio management tools designed for experts who require advanced tools to manage multiple client accounts. Dubbed the 3Commas Asset Manager (AM) plan, it is a premium subscription that helps streamline trading operations, client onboarding, and integrated reporting.  Among its key features are a unified dashboard that facilitates all client accounts in one place and multi-account trading, allowing for the simultaneous execution of strategies. Moreover, a comprehensive reporting tool helps in creating client performance reports while automatically calculating each client’s fees.

Pricing

3Commas offers various pricing plans designed to meet the needs of users at different levels. All pricing plans offer a different set of features tailored to a user’s budget, trade activity levels, and desired level of automation. Traders can choose between paying monthly, annually, or biannually. The following is a breakdown of the 3Commas pricing plans:

Free Plan – $0/ 0/month

The free Plan is the first tier specifically designed for beginners who are interested in a risk-free way to trial the platform. Users gain access to the Smart Trade terminal in demo-trading mode, along with three SmartTrades and up to 10 GRID bots and DCA Bots each. You cannot access futures trading and only have view-only support for two connected crypto exchange accounts.   

Pro Plan – $37/month (Billed Annually)

This second-tier Plan best suits active traders interested in implementing automation across different strategies. Traders gain access to 50 active SmartTrades and can run up to 50 Signal Bots, as well as 50 DCA Bots, all with multi-pair availability. They are also allowed 10 running Grid Bots, 500 active DCA trades using multi-pair support, and up to 10 DCA Bot backtests monthly.

Expert Plan – $59/month (Billed Annually)

The expert, which is the third tier, offers users an unlimited access to active SmartTrades and up to 250 Signal Bots, as well as 50 running Grid Bots. They also get the ability to run 250 DCA Bots using available multi-pairs trading. Expert traders utilizing this Plan have a high ceiling, with 2,500 active DCA trades in addition to 500 DCA Bot backtests conducted per month.

The Asset Manager Plan – $374/month (Billed Annually)

The Asset Manager plan is custom-made targeting institutions of experts that manage multiple client portfolios. The Plan integrates multi-client management functionalities, invoicing, advanced portfolio controls, and high-end dashboards.

If none of the regular plans mentioned above work for you, you can request a custom plan from 3Commas. This will enable you to incorporate additional limits that directly address your specific needs.

All 3Commas pricing plans provide access to demo accounts, trailing orders, TradingView alerts, backtesting tools, and APIs. In addition to supporting over 14 major exchanges, you can choose the most convenient payment method, whether monthly, annually, or biannually. Using the annual Plan saves you at least 25% on costs, while the biannual Plan comes with a 35% discount compared to monthly payments.

In response to customer complaints, 3Commas has also recently announced the launch of a special Starter plan meant for beginners. The Plan will cost $15 per month when paid annually or $20 for users who choose to pay in monthly installments. The features will include the Terminal, SmartTrades, and a few DCA & Grid bots to help beginners get started.

3Commas Affiliate Programs

3Commas operates a referral program that enables users to make extra passive income by introducing their friends to the platform. Each of these plans comes with specific recurring revenue as explained below:

Referral Program

The 3Commas Referral program specifically offers participants a 20% lifetime commission on all referrals who pay for the 3Commas subscription. Users have the option to withdraw their reward to a USDT TRC20 or ERC20 wallet once they have achieved a minimum of $50. Interested participants must generate a unique referral link from their 3Commas account and share it with friends or social media followers. The referral bonus is calculated and transferred to a user account daily and is available to all users.

Affiliate Program

The 3Commas Affiliate program targets content creators and social media influencers, offering a 30-40% recurring commission on subscriptions. Additionally, participants can earn additional bonuses based on their audience’s trading volume. The Affiliate program is an application-based program designed for individuals with large audiences, rewarding them with recurring revenue and tiered trading volume bonuses.

Ambassador Program

The 3Commas Ambassador Program is an invitation-only opportunity for earning passive income, reserved for the platform’s VIP partners. Participants are entitled to exclusive rewards and bonuses, premium customer support, and direct interaction with the 3Commas team. While the Ambassador program differs slightly from the Affiliate program, it also involves earning rewards for promoting the 3Commas platform. The 3Commas Ambassadors program introduces more personal engagement and additional perks.

Conclusion

For any crypto trader interested in a platform that simplifies, automates, and optimizes trading strategies, 3Commas is a viable option. The platform is packed with powerful trading bots and crypto portfolio management tools, all on a single platform. While it may have a steep learning curve for beginners, it comes equipped with educational resources that make it a worthwhile investment. The platform also offers robust security features, and the fact that you don’t have to watch over the trading 24/7. Whether you’re a beginner, intermediate, or advanced trader interested in automating your trading across different exchanges, 3Commas is ideal for you.