Course 13

Bot trading

What you will learn:

  • A basic setup to get started on bot trading with 3commas and TradingView

This course is for people interested in bot trading, ones who are completely new to it.

I will teach you the basics, then you will have to do some research and testing on your own to learn more, and find out about yourself and what fits you.

When you want to trade cryptocurrencies, usually you go to your main exchange (e.g. Binance, Coinbase, Kucoin, FTX, etc.) and then you fund it with money from your bank. You bring in USD and you either buy some USDT or USDC, or whatever else crypto.

At this point you are ready to trade. You see that Bitcoin just went down 15% so you decide to buy and you use 50% of your account balance. Bitcoin magically pumps 5% that day and you decide to sell it. Half of your account balance just did +5% so total you earned +2.5% of your full account balance. You just traded for the first time!

Bot trading is nothing else than that – simple trading. The only difference is that it is automated by some sort of computer, and you have absolutely nothing to do, just watch. Bot trading is great for a few reasons: 1- you can trade while you sleep, eat, work, etc. and 2- your emotions are not involved anymore. After you learned some stuff on my website and after reading some of my tweets, you will quickly understand that controlling your emotions is the hardest game of trading, this is why Bot Trading is cool.

When you trade with bots, you need 3 elements:

- a strategy (this is the part that makes the decisions “Buy when RSI is <30 or Buy when price went down 10%”, etc.)

- an exchange to take your trades (Kucoin, Coinbase, Binance, etc.)

- the actual bot (this is what will go on your exchange and place the order).

Today on the marketplace there are numerous options to get started with bot trading, all with their advantages and drawbacks. It all comes down to what your goal is with trading and what product you will like most on the marketplace.

There are products that have strategy+bot combined, so you go on a website, put in the information of your exchange, and then you watch. There are other products where the bots are already on the exchange, with some strategies, so you literally have nothing to do but to put your money in there and set it up.

Honestly – the simpler it is, the less you will earn. It is like anything in life. I am a big fan of staying simple, but that rule doesn’t apply in this case.

The MOST important part of bot trading is to learn a little bit of stuff (you are at the right place), so that you can UNDERSTAND what is going on and you can make decisions yourself and adjust your bot trading experience (and make tons of money).

If your goal is to learn some basics, do the leg work and understand what is happening under the hood, keep reading you are at the right place.

Instead of searching all over the internet, I will tell you 1 very basic set up you can use to start and learn. This is a set up that I use today, and that many other traders use.


Setup:

1 – Use the exchange of your choice (given compatibility with below tools)

2 – Create a 3commas account (use my referral link if you want https://3commas.io/?c=tc292437)

3 – Create a TradingView account (I believe they have a free version, use my referral link if you want https://www.tradingview.com/gopro/?share_your_love=Maddrix_club)

The exchange is where the action will take place.

3commas is where the different bots and their strategies reside.

TradingView is a website to chart the cryptos, optional for now, more at the end.


There needs to be a link between your 3commas and your exchange. So what you will do is from your exchange you will create an API access (email me if you need help) and you will put this into your 3commas.

After that, you will be able to see your exchange details on your 3commas account.

Once you have your 3commas and it is linked to your exchange, you can create a bot. You will tell him when do you want to buy or sell (Signal) and when to exit (Stop Loss, Take Profit), etc.

Once created, you start the bot and you’re now bot trading!

The website 3commas has bots, it is connected to your exchange with the API, so you set up the bot and it trades for you.

NOW – do you remember “TradingView is a website to chart the cryptos, optional for now, more at the end.”? Let’s get into it.

I recommend you read course 14, I talk about all the different bots I know about, including all the ones in 3commas. What you will find is that you can bot trade fine with 3commas, but you can reach some limitations and you may want more.

This is where TradingView comes in the game. This TV is another website/platform, that can chart the different markets.

For example take bitcoin, you can look at it like a newbie on Coinbase

Or you can look at it like a pro, bot trader:

So now let’s say that you are tired of getting your signals from someone, or you don’t want 3commas to decide for you when to buy or sell, and you want to do that based on your analysis, or based on an algorithm analysis? (don’t get scared by the word algorithm, it’s super easy frankly).

Let’s say your friend created an algorithm that you can apply to a chart, and which will give you Buy signals each time the price goes over the average price of the past 15 days. Now, instead of relying on 3commas or any other signals, you can create your own signal! This takes place on TradingView.

So you have TradingView, you apply an indicator that generates Buys and Sells, and all you have to do is to create an alert in TradingView. (I also have courses about coding your own algo).

In this alert, you will copy paste a special link from 3Commas (this is a link to your bot).

Now, each time a BUY signal will get generated by your strategy (which you put together in TradingView), an Alert will be triggered. This alert will send the signal to 3commas, to that specific bot. The bot will then send a command to your exchange for trading, and that’s it!

It may sound complicated because you are maybe just starting. Stick with me, in Course 15 I will teach you how to perform all that from A to Z with detailed information.

Hope you enjoyed.