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3Commas Review (2022)

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What is 3Commas?

Founded in 2017, 3Commas is a popular automated trading platform that currently averages over £16 billion in transactions per month. The service is affordable, easy to use, and caters to traders of all experience levels.

To learn more about 3Commas and how it can put your crypto-holdings to work, take a moment to read this review – it contains everything you need to know.

Advantages

  • 20+ exchanges supported.
  • Spot, options, and leverage trading available.
  • Large marketplace for buying premade bots and signals.
  • Affordable.
  • Good variety of highly customizable bots.
  • Excellent TradingView integration.

Disadvantages

  • Limited technical indicators available.
  • Starter plan is limited in functionality.
  • Creating customized bots is difficult without TradingView.

Main Features

Automated Trading

The first step to using 3Commas involves connecting one or more exchange accounts to the platform. If you’ve never done this before, don’t worry – the process is straightforward and takes just a few clicks.

Once your exchange accounts have been successfully linked, you’ll have the option of creating three types of bots: DCA, Grid, and Options.

DCA Bot

Dollar Cost Averaging (DCA) is an investment strategy that involves making regular purchases of an asset, regardless of price, over an extended period (e.g., if you purchase £100 of Bitcoin (BTC) every week regardless of what the current price is).

DCA bots on 3Commas are highly customizable and capable of much more than just executing regular buys orders. As of now, there are three types of DCA bots you can choose from: Gordon, Wizard, and Advanced.

Gordon

Gordon is a simple DCA bot designed to give new traders a quick way to get up and running. To create a Gordon bot, simply assign it to an exchange, give it a base currency to trade, and select its risk tolerance (conservative, moderate, or aggressive).

All Gordan bots employ something called the QFL strategy, which uses support and resistance levels to buy low and sell higher.

It’s worth noting that Gordon bots only perform long trades and shorting isn’t currently available.

Wizard

For a higher level of customization, 3Commas offers the Wizard DCA bot.

Unlike Gordon, the Wizard can trade multiple pairs at once and can conduct both long and short trades. You can also implement a decent variety of safety, stop loss, and take profit settings to further refine your trading strategy.

Another important feature of the Wizard bot is the ability to implement custom trading strategies. These strategies can be built using a handful of technical indicators like Bollinger Bands, RSI, and Money Flow Index crosses.

Unfortunately, compared to other automated trading services, the number of technical indicators available is low.

Advanced

If you’re looking for even more customization, the Advanced bot is where you’ll find it.

As you can see from the image below, there’s plenty of settings available to fine-tune your trading strategy – far beyond what’s offered by the Gordon or Wizard bots.

If you’ve developed customized trading signals using TradingView, both the Wizard and Advanced bot can receive and act upon these signals in real time. This is easily the most powerful feature of 3Commas and provides a level of customization not offered by any other tool on the platform.

Grid Bot

A fairly recent addition to the 3Commas platform, Grid bots are designed to trade sideways moving markets or non-trending cryptocurrencies.

Of all available options, Grid bots are the easiest to create and are well-suited for beginning traders. To set up a Grid bot, start by selecting an upper and lower limit.

Every time the price of the coin in question drops below the lower limit, the bot will execute a buy order. Whenever the price travels above the upper limit, a sell order is placed.

If you’re not sure where to place these buy and sell limits, you can choose the AI strategy option. When this is selected, 3Commas will automatically calculate these levels for you.

To learn more about Grid bots and how they work, read here.

Options Bot

An option gives you the right to buy or sell a cryptocurrency before or on a specific date. While options trading isn’t without risk, it offers several advantages not available with traditional spot markets.

To help make options trading easier, 3Commas has created its own Option bot. However, this feature isn’t a bot in the traditional sense of the word, but rather an interface designed to make options trading easier and more intuitive.

To use this feature, you’d need to open and link a Deribit account – which is the largest crypto-options platform around and is known for having one of the fastest APIs in the industry. Unfortunately, the 3Commas Options bot only supports Bitcoin (BTC) and Ethereum (ETH) trading pairs.

To learn more about the 3Commas Options bot and how you can use it to place puts and calls, I recommend watching this video.

Marketplace

If you don’t want to go through the trouble of creating your own trading bots and signals, head over to the 3Commas marketplace. Here, you’ll find a seemingly endless list of options to fit a wide array of trading styles.

All available presets and signals can be sorted by their general strategy (e.g., DCA long or short), what coins they trade, and their last month’s profit. While some options are free to follow, others can cost over £100 to use.

Because most presets/signals employ multi-pair bots and other advanced features, you may be limited in what signal packages you can use if you have a base-level subscription.

What is the difference between presets and trading signals?

Presets are ready-to-go bots that come equipped with a trading strategy, stop loss, and take profit settings.

Signals are provided by third parties and only offer buy and sell signals. If you use a signal package, you’ll have to create your own stop loss and take profit settings.

For more information on using the 3Commas marketplace, read here.

Manual Trading Station

3Commas has a TradingView-powered trading terminal accessible to all users regardless of their subscription level. The terminal lets you place both limit and market orders and gives you access to tons of charting tools and technical indicators.

This terminal is similar to what you would find on Coinbase Pro or Binance (but with slightly fewer features).

The main advantage of this manual trading station is it allows you to access all API-linked accounts from the same terminal.

For example: if your crypto-portfolio is spread out across 5 major exchanges, you can sync all 5 to your 3Commas account and trade from a single window.

SmartTrade Terminal

When you open the SmartTerminal, you’ll find 5 tabs:

  • Buy/Sell: The standard buy and sell options you’ll find on any trading station.
  • Smart Trade: Lets you set simultaneous buy and take profit orders. The Smart Trade tab also supports trailing take profit and trailing stop loss options.
  • Smart Sell: Used to create selling strategies for coins you already own.
  • Smart Cover: Lets you create strategies to sell your coins and buy them back at a lower price. This option is great if you think the market is about to go into a downturn.
  • Smart Buy: Designed for users who have open short positions, the Smart Buy option is used to protect positions that are in danger of liquidation. It does this by placing strategic take profit and purchase orders.

The SmartTrade terminal is very robust and learning to use all its features can take some time. If you would like to know more about SmartTrade and how it works, I recommend watching this video.

Backtesting & Paper Trading

Unlike most automated trading platforms, 3Commas doesn’t have a dedicated backtesting feature. The reason for this, according to them, is the lack of 1-second chart data that goes back further than 24-48 hours.

However, all bots come with an analytics section that gives a basic overview of their performance. If you’re dead set on backtesting your bot, a group of 3Commas community members have created a service called CryptoLight.

CryptoLight is a free-to-use platform that lets you run backtests on your 3Commas bots and signals.

Fortunately, 3Commas does support paper trading. This means you can test all new bots and settings against live market data. That said, the 3Commas paper trading service doesn’t simulate liquidity, which can make it difficult to accurately test Grid and scalping bots.

What’s the difference between backtesting and paper trading?

Backtesting uses historical exchange data whereas paper trading subjects trading bots to raw market data.

Both are valuable testing tools and each one has its set of pros and cons.

3Commas Academy

When it comes to educational resources, 3Commas stands head and shoulders above the rest.

If you head over to the 3Commas Academy page, you’ll find tons of informative articles covering topics – like DeFi, blockchain, technical analysis, and trading.

What’s more, the 3Commas YouTube channel is packed with highly-detailed videos demonstrating how to use nearly every tool the platform has to offer.

If you have any additional questions, they seem responsive via live chat too.

3Commas Community

3Commas’ user community is spread out over its Telegram channel, Discord server, and community forum.

Most conversations focus on bot settings, trading strategies, and technical analysis. It doesn’t seem like the community is that active though.

Supported Exchanges

3Commas is compatible with over 20 exchanges including popular names like Binance, Kraken, and Coinbase. The platform also supports Tron Wallet and its proprietary 3Commas crypto-wallet.

Not all exchanges are compatible with all trading bots, so you’ll want to check exchange/bot compatibility here.

What exchanges does 3Commas support?

3Commas currently supports the following exchanges:

  • Binance
  • Binance Futures
  • Bitmex
  • Deribit
  • Bittrex
  • Bitfinex
  • ByBit
  • ByBit Futures
  • Gate.io
  • Gate.io Futures
  • Coinbase Pro
  • Gemini
  • Huobi
  • Gemini
  • Kraken
  • KuCoin
  • Okex
  • Poloniex

Pricing

A basic starter plan on 3Commas is very affordable and can be purchased for just $14.99 a month. This plan provides you with unlimited DCA bots, paper trading, and access to the SmartTrades platform.

However, the starter plan only lets you run a single Grid and Options bot. Furthermore, DCA bot trading is limited to a single coin pairing. For more functionality and greater access to tools, the Advanced or Pro plan may be a better fit.

If you’re just looking to try the platform out, 3Commas offers a free three day trial. This will give you access to just about everything the service has to offer and is worth checking out.

Is 3Commas Safe?

Yes, 3Commas is known as a highly secure platform and no major security breaches have been reported.

Enabling 2FA can help protect your account and prevent hackers and other ill-intended actors from gaining unauthorized access.

3Commas Alternatives

Here are a few 3Commas alternatives I recommend taking a look at:

  • CryptoHopper: The platform’s largest competitor, CryptoHopper provides a greater degree of customization that doesn’t rely on TradingView integration. You can learn more in my CryptoHopper review.
  • HaasOnline: Geared towards experienced traders, HaasOnline is one of the most robust automated trading platforms available. Unfortunately, the service is considerably more expensive than 3Commas and the UI isn’t very user-friendly. You can learn mroe in my HaasOnline review.
  • Shrimpy.io: A portfolio management tool that supports 20 exchanges, 13 wallets, and DEX trading. While you can deploy bots on Shrimpy.io, these bots are designed for portfolio rebalancing and not high frequency trading. You can learn more in my Shrimpy.io review.
  • GunBot: Compatible with over 100 exchanges, GunBot is a feature-rich automated trading program that offers a lifetime license after just one payment.

Other alternatives include TradeSanta, CryptoTrader, and Pionex.

Bottom Line

Whether it be the ready-to-use Grid bot or its TradingView compatibility, 3Commas offers something for people of all experience levels.

Here’s what stood out to me:

  • Spot, Futures, and Options trading supported.
  • A wide range of features and tools for all skill levels.
  • 20+ exchanges supported.
  • Excellent customer service.

If you’re new to the world of automated trading and don’t know where to begin, 3Commas is one of the most user-friendly options out there.

To get a feel for the platform and its various features, consider signing up for a 1 month Starter plan.

3Commas Website

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