3Commas practical guides: how to succeed with long and short positions

In this article “3Commas practical guides,” we will talk about how you can profit from trading long and short positions using 3Commas.io platform, regardless of the direction in which the price moves.

Navigating Strap and Strip Options Bot Techniques in 2023

In an ideal trading world, every move would culminate in profit. Reality, however, has its twists, often leading to trades being curtailed by stop-loss mechanisms. But what if there was a way to cushion such scenarios? Enter the Strap and Strip Options Bot strategies. Designed as a protective shield, these tactics ensure that even when market waves sway unpredictably, you're still positioned for some gains, albeit potentially lesser than in a favorable market tide.

Drawing parallels, Strap and Strip strategies resonate with conventional long and short trading approaches. Picture them as futures trading but with an auto-adjusting stance at specified price points. For those bullish about an asset's trajectory, the strategy suggests acquiring multiple Call options, while simultaneously procuring a single Put option as a defensive move against potential downward spirals.

The 2023 iteration of the 3Commas.io Options Bot streamlines this process. With a user-friendly interface, setting up a Strap or Strip trade is merely a matter of clicks. Gone are the days of juggling diverse options or laboring over timely setups. This advanced bot, tailored to your unique risk appetite and preferences, manages the intricate choreography for you.

Setting up

To start working with Options Bot, you need to connect your 3commas account to the Deribit exchange (Deribit is renowned as the #1 exchange for trading Options on the crypto market). Next, set up a trade in the Options Bot section of the side menu. You can always try the functionality first with a Paper Trading account:

For example, we believe that the price of Bitcoin is likely to drop the next day. We select a strategy from the list and adjust the position size, timing, maximum risks, and desired profit. With a Strip strategy, the bot will buy a Call option with a central strike and Put options in greater amounts with either a similar or a different strike. If you are not yet familiar with the concept of options, please read our detailed article on options before using this strategy. This strategy will help you aggressively earn when the price drops and hedge ourselves if the price goes up. Thus, if the price drops as we planned, we will earn double (Nx) profits, but we will also profit if the price goes up, (not as fruitfully though). In our case, we have set the risk profit ratio at 28.57.

Once the trade is confirmed, it will then go through the automatic mode, and you will only have to periodically check your analysis being fulfilled. Thanks to the 3commas.io interface, it is convenient to create, track and manage your positions.

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

To learn more about the Options Bot, please follow this link.

Disclaimer: The contents of this article are not intended to be financial advice and should not be treated as such. 3commas and its authors do not take any responsibility for your profits or losses after you read this article. The price prediction contained herein is based on data that was gathered from a variety of sources. This should not be used as a parameter for investing. The user must do their own independent research to make informed decisions regarding their crypto investments.