3Commas practical guides: how to build up your position in a profitable way

In this “3Commas practical guides” article, we will discuss how you can automatically build up a position at a more favorable price using the 3Commas.io platform.

DCA Advanced Bot

Each of us can recall how we entered the position at a high price before the asset’s major move, which reduced our final profits or even led to a loss. The DCA (Dollar Cost Averaging) Advanced Bot by 3Commas.io allows you to automatically increase the position of the chosen asset, providing the most advantageous purchase price by averaging purchases at several configurable levels and then selling at your target price.

Setting up

Create a bot in the DCA Bot section of the side menu:

First, you need to select an exchange to trade on. You can always try the functionality first with a Paper Trading account. Then select one or more pairs that you want to trade with, as well as the conditions for starting a trade:

If, for example, we believe that the TRX price will rise soon, and we want to build up a position. Choose a Long strategy where the bot buys our asset cheaper and sells them at higher prices, adjust the type and size of the order and the conditions for a Take Profit order:

We also must set the conditions for averaging in, that will get triggered if the TRX price drops down before rising and the conditions for a Stop Loss order if it does go below a level that satisfies our risk management:

You can use additional refinement settings for more specific bot conditions:

Once the bot is created and launched, our trading plan will be executed automatically. All orders, depending on the selected type and quantity, will trigger according to a predefined algorithm; thus, we will increase the position of the asset at a favorable price and fix the profit at the configured levels. Thanks to the 3Commas.io interface, it is convenient to track, manage, and edit transactions if necessary:

Good luck, everyone! See you in the next 3Commas 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.