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3Commas practical guides: How to earn on volatility in any direction
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In this article “3Commas practical guides,” we will talk about how you can earn on volatility regardless of the direction of price movement and without getting glued to the chart 24/7 with the help of 3Commas.io service.
Long Straddle Options Bot Strategy
Everyone who has experienced trading knows that the greatest profit can be made during the high market volatility. But high volatility is also associated with much greater risks if the direction of the price move does not fulfill your expectations. The Long Straddle Options Bot strategy allows you to profit by buying Options during high volatility regardless of the direction in which the price of an asset moves. The Long Straddle Options strategy is analogous to the simultaneous short and long positions on futures contracts, where buying options with the same strike in different directions, you earn when volatility is strong, but suffer a controlled loss if the price does not move over the chosen period of time. The new 3Commas.io Options Bot will help you set up a Long Straddle strategy trade in a few clicks.
To start working with Options Bot, you need to connect your 3commas account to Deribit exchange (Deribit is renowned as the #1 exchange for trading options on the cryptomarket). 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, our market analysis has led us to believe that Bitcoin will be highly volatile over the next 15 days. Still, we don’t know in which direction the price will go, as historically, Bitcoin’s price was unpredictable in similar situations. To profit regardless of the asset’s price movement direction, we will select Long Straddle from the list of proposed Options Bot strategies and adjust the position size, timing, trend intensity, maximum risks, and desired profit. In our case, we have set the risk profit ratio at 6.61, which is a good indicator for a trade.
Further, the transaction will occur automatically. 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 3Сommas Practical Guides!
If you are interested in this article, you can learn more about the option bot here.
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.