3Commas practical guides: how to always close a trade with profit

In this “3Commas Practical Guides” article, we will explain how the 3commas.io tools can help you profit from your trades even if you were knocked out by a Stop Loss.

Trailing Stop Loss

How many times have we encountered a situation when after buying an asset, the price went in the right direction, but after a while, our position was knocked out by a Stop Loss, leaving us profitless? The Trailing Stop Loss feature of the 3commas.io service allows you to automatically move a Stop Loss in tandem with the price in order to profitably close the trade in case of a price retracement.

Let’s say, you enter a position, and set a Stop Loss at -5% of the entry price, if the asset price rises by 20%, your Stop Loss will automatically move to the + 15% level of the entry point and close at this level in case of a rollback.

Setting up

Select an exchange, market, and a trading pair in the Smart Trade section of the side menu. The chart allows you to perform analysis and do all the necessary calculations to enter a trade. You can always try the functionality first with a Paper Trading account:

The Trailing Stop Loss function is available in any of the smart tabs of the section. To start a trade, select the entry conditions, Take Profit and Stop Loss, based on your analysis and risk management. For example, we believe that the price of BTC will go up by more than 5% and decided to buy 0.1 BTC, with a stop at -1.84%:

After activating the Trailing Stop Loss function and when the price rises by more than 1.84%, our Stop Loss will move up following the price and increase the likelihood of bringing profit. If we activate the Stop Loss timeout function, then our Stop Loss will not be triggered instantly, but only after the specified time if the price breaks the stop level. This feature is very useful in case of instant squeezes, which are often used by market makers to trigger stop losses.

After checking all the trade settings, all we have to do is create it, confirm and monitor the result. The rest of the work will be done automatically by 3commas.io.

Conclusion

The dynamic world of trading often presents traders with situations where a promising trade is halted prematurely by a Stop Loss. Recognizing this common challenge, 3commas.io offers a suite of tools to aid traders in optimizing their trading strategies and potentially enhancing outcomes. As illustrated in the latest "3Commas Practical Guides," the platform introduces a pivotal tool: the Trailing Stop Loss.

One of the standout features of the Trailing Stop Loss is its adaptability. Rather than being static, it adjusts in real-time with price movements, enabling traders to potentially capitalize on positive market swings while also providing protection against negative ones. By automatically moving the Stop Loss alongside a rising asset price, the mechanism creates a cushion, ensuring that a trader's position can be protected at a higher threshold than initially set, effectively acting as a dynamic safeguard against market volatility.

The 3commas.io platform simplifies the process of setting up this feature. Using the Smart Trade section, users can select their preferred exchange, market, and trading pair. The integration of a charting tool within the platform facilitates precise analysis and calculations before entering a trade. To cater to those who are new or cautious about utilizing this tool, 3commas.io thoughtfully offers a Paper Trading account, allowing traders to familiarize themselves without real-world stakes.

Furthermore, the Trailing Stop Loss is not the only innovation from 3commas.io aiming to maximize trading efficiency. The Stop Loss timeout function offers an added layer of strategy by allowing the Stop Loss to be triggered only after a specified duration. Such a feature becomes especially relevant in volatile markets, where sudden price squeezes can prematurely activate stop losses. With the timeout function, traders can potentially avoid these rapid fluctuations and gain a better chance of realizing a positive trade outcome.

In the constantly evolving landscape of cryptocurrency trading, where market conditions can change swiftly and unpredictably, tools like the Trailing Stop Loss and Stop Loss timeout function are invaluable. They symbolize a blend of automation and strategy, ensuring that traders are not left at the mercy of abrupt market shifts. As we reflect upon these advancements in trading tools, especially in the context of our current year, 2023, it is evident that platforms like 3commas.io are driving a more informed and adaptive approach to trading.

To reiterate, while the tools offered by 3commas.io aim to provide strategic advantages, they do not guarantee any specific outcomes. Trading, by nature, comes with inherent risks, and it's crucial for traders to continually evaluate their strategies and make informed decisions based on up-to-date market information.

Good luck, everyone! See you in the next 3Сommas Practical Guides!

The information above contains information on the cryptocurrency market, which is associated with high risks. These materials are presented for informational purposes only and in no way should be construed as a recommendation for the purchase or sale of the assets. Any person considering trading digital assets should seek independent advice on the suitability of any particular digital asset.