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Create a cryptocurrency trading bot with Binance and 3Commas

November 22, 2020

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.

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
(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 to create 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

Leave this tab open so you can come back to copy the API key and API secret information.

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 "Binance Personal", paste the API Key and API Secret.

connect binance

Step 7: Create the bot

Go to DCA Bot and press button "+ Create Bot", use the advanced options, not "Gordon"

Bot type

Composite

Pairs

Select the pairs the bot can trade, I recommend starting with USDT pairs, top 10 by market capitalisation, excluding stable coins. Do not include leverage tokens, BTCUP, BTCDOWN for now, I'll cover this advanced topic soon.

Max active deals

5, make higher or lower if the bot is using amount greater than you have on exchange

Strategy

Long

Profit currency

Quote

Base order size

min 100 USD

Safety order size

Same as base order size

Start order type

Limit

Deal start conditions

QFL, Day trading, 3%

deal start condition

Take profit

1.88%, Percentage from total volume, trailing on, 0.12% trailing deviation

take profit

Stop loss

I don’t use Stop Loss in this bot.

stop loss

Safety orders

These orders will trigger if the price goes against you, buy more and bring the average buy price down

safety orders

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.

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