In this “3Commas practical guides” article will have a look at how 3Commas.io platform can help you easily hedge your main Long or Short position and make a profit even after Stop Loss was triggered.
Option as a hedge
How many times have you encountered the price taking a direction opposite to your calculations, which triggered a Stop Loss and closed your position? The new 3Commas.io Options Bot will help you protect your main position easily and efficiently and earn money even if the price moves in an unexpected direction. To do this, use the Long Call or Long Put Options Bot strategy to open an Options position in the direction opposite to your primary position. In this case, if your main position reaches the Stop Loss, you will profit from the Options position, and if the price goes in the direction you’ve expected, your losses caused by the Options position will be covered by the profit from the primary position. If you are not yet familiar with Options, make sure you familiarize yourself with our detailed article on Options before using this strategy.
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:
Let’s say our primary position is Long BTC, and we want to hedge it so that if the price of Bitcoin falls, we will still profit instead of suffering losses. To do so, we will select the Long Put strategy and adjust the position size, timing, trend intensity, maximum risks, and desired profit so that, according to our calculations, regardless of the further price direction, we will always remain in profit on the overall result of the primary and safety positions.
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!
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.
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