How professional traders are using 3Commas in the BTC bull run

The BTC Bull Run: A Unique Opportunity for Traders

Bitcoin's ongoing uptrend presents a favorable environment for traders to capitalize on consistent market momentum. To get the most out of this market, precision automation tools are a requirement to open and close deals as target conditions present themselves. The BTC market is highly dynamic, but tools like Signal, Grid, and DCA bots orchestrated with a strategic trade management system allow savvy traders to outperform individuals using simple buy and hold manual strategies. 

The current trend is not just about Bitcoin, however. It’s a precursor to potential altcoin rallies, making this an optimal time for traders to leverage both BTC and altcoin strategies to achieve their long-term goals.

For this article 3Commas interviewed two very experienced traders that we’ve had long-term collaborations with. They were kind enough to share their thoughts on the strategies and tactics that they’re using to find success with BTC, and they also provided insights about what they’re doing to take advantage of increased action in the altcoin markets. 

This is not official trading advice or recommendations from 3Commas. The information contained in this article represents the well-informed opinions of two professional traders who use 3Commas to execute their trading plans. 

Let’s get into it. 

Key Tools and Strategies Used by Professional Traders

1. Long DCA Bots: Scalping for Maximum Gains

Long DCA bots are a favorite among traders during bullish trends. These bots excel in uptrending markets, where they can be configured to scalp smaller profits with high frequency. It’s incredibly tedious, if not impossible, to duplicate this kind of high-frequency trading manually, and once the bot has been configured correctly, the target outcome is to have a substantial aggregate profit that beats the overall market performance for that trading session. On average, traders see around 9% better performance than HODL strategies using this type of automated scalping strategy, but that number can hit 20%+ with a finely tuned bot working in a volatile uptrending market. 

Here’s how traders are optimizing these bots:

• Settings: The traders we interviewed recommend configuring bots with short timeframes, such as using RSI < 20 on a 5-minute chart. This setup ensures frequent deal execution as the market fluctuates. This works best on a high liquidity exchange where it is easier to find a counterparty during the optimum price window that is being targeted. 
• Handling Pullbacks: Pullbacks and corrections are opportunities for DCA bots to increase the size of their deals. By buying at lower prices during the pullback, the bot reduces the average cost of the Bitcoin in that deal. For example, if the initial purchase was at $90,000 and the pullback allows the bot to buy more at $88,000, the average price of the holdings drops below $90,000. Once the market resumes its upward movement, these larger deals yield higher profits.

In essence, pullbacks are not obstacles but opportunities for DCA bots to optimize BTC trades, setting the stage for higher profits when the upward trend continues.

2. SmartTrade: Capitalizing on Pullbacks

For traders who prefer more direct involvement, SmartTrade offers a powerful alternative. Individuals and asset management firms often use SmartTrade when an individual trade has a substantial amount of funds involved and they want greater control over the entry and exit points so they can hit much bigger profit percentages. But to do this requires very strong technical analysis skills and a deep understanding of the variables involved in getting the timing and price points correct. Newer traders will want to do a substantial amount of backtesting before committing funds to this type of strategy. 

Pullbacks in the BTC market are excellent entry points for longer-term scalping strategies. Here’s why SmartTrade works so well:

• Strategic Entries: Traders use SmartTrade to wait for pullbacks, entering the market at optimal points for higher returns. You can also use Smart Trades to fish for price anomalies, such as when BTC experiences a sudden, very temporary price drop. It’s worth committing some funds if the payoff is capturing tokens at a substantial discount. 
• Strategic Exits: Very similar to benefits of a strategic entry, timing an exit correctly on a big trade can yield substantially higher profit margins than most bots can achieve. If a trader feels the market may have a higher ceiling than their target exit, they can also create steps and sell off 25% of their coins at the target price, and then 25% at three additional steps higher as the price climbs. When combined with Trailing Stop Loss, the risk of losing money if the additional steps aren’t hit is strongly mitigated. 
• Profit Targets: Unlike bots that often scalp for <2% gains, SmartTrade allows traders to aim for larger profits by manually timing their entries and exits based on technical analysis and market models.

This approach works especially well for traders who monitor market conditions closely and want to capitalize on dynamic price movements to potentially achieve profit margins that can range from 25% all the way up to 500% and beyond for trades on individual altcoins. 

3. Combining Bots and SmartTrade for Synergy

The most successful traders usually combine the power of bots with the flexibility of SmartTrade. For example:

• A trader might set up Long DCA bots for consistent scalping during an uptrend, taking advantage of all the little peaks and valleys that naturally occur during a trading day. It’s work that is perfect for bots because it automatically executes based on the conditions chosen by the user. 
• Simultaneously, they use SmartTrade to capitalize on pullbacks for larger, more strategic trades with higher profit potential. 
• Traders can also convert DCA Bot deals into Smart Trades to create more optimized exit points. 

This hybrid approach ensures traders can maximize their returns while maintaining flexibility to adapt to changing market conditions.

Preparing for Market Shifts: Altcoin Strategies

The BTC bull run doesn’t last forever. When Bitcoin stabilizes or slows down, traders often shift their focus to altcoins, which historically experience explosive growth during these periods. 

1. Multi-Pair DCA Bots for Altcoins

As Bitcoin plateaus, multi-pair DCA bots become invaluable for trading altcoins because they can cover a huge number of contingencies thanks to their capacity to monitor and trade on almost 200 pairs. It greatly simplifies the execution of a multi-pair strategy and reduces the amount of time analysts need to spend on identifying good coins outside of the top 20. Binance offers several thousand trading pairs, for example, and it is not feasible for an analyst to create comprehensive models for all of them. 

With the huge number of pairs a bot can handle, trade managers can select candidates without needing to know much about them other than their historical price performance. Here’s how traders prepare:

• Bot Configuration: Traders customize bots to trade altcoins they’ve identified as good candidates, typically targeting pairs with high volatility and liquidity. Similar to the Long DCA Bot strategy, setting up short time ranges are advisable to generate a larger number of deals and ensure your deals close within the target price window. 
• Market Timing: These bots are particularly effective when altcoins begin to rally, capturing gains across multiple pairs. Some traders are running an accumulation strategy right now for their altcoins, setting up opportunities for big Smart Trades when altcoins begin moving up faster. 

2. GRID Bots for Sideways Movements 

While waiting for altcoin breakouts, GRID bots shine in periods of lateral price movement. These bots allow traders to profit from the small, consistent price fluctuations that occur during consolidation phases. 

• Why GRID Bots Work: The traders who gave input emphasized that the consistency and reliability of Grid Bots is an integral part of their trading operations. They use their Grid bots to deliver regular returns with minimal energy invested in them. Once they’ve configured their Grid Bots, they let them run in the background accumulating a large number of small successful trades without requiring much of their attention, allowing them to focus on finding bigger opportunities with selective Smart Trades and keeping an eye on the more dynamic markets their DCA bots are operating in. 

To sum up why professional traders love Grid Bot, particularly for the altcoin markets, it’s because properly tuned Grid Bots are sneakily good at generating revenue with minimal maintenance. 

Pro Tips from the 3Commas User Community for a BTC uptrend

The 3Commas community of traders has shared several insights that can help refine your approach:

1. Be Ready for Corrections: Corrections are not a setback—they’re an opportunity. If you’re good at technical analysis, Smart Trade is a very, very powerful tool for making large, successful trades. Keeping DCA bots configured for short timeframes and trailing Stop Loss can work wonders for mitigating risk by exiting the market before it drops enough to seriously impact profit numbers. 
2. Build Your Plan for Altcoins Now: As Bitcoin slows, altcoins often take the stage. Keep an eye on market trends and have multi-pair bots already configured and active so they will begin trading as soon as your target market conditions are met. Utilize Grid Bots to generate consistent trading results for altcoin markets that show consistent sideways movement. 
3. Leverage Automation: Balancing bot automation with manual oversight via SmartTrade is what separates professional traders from hobby traders. The second part to that is utilizing multiple bots configured to different market conditions to accomplish your trading goals. Use the 3Commas performance dashboard to see which bots are beating expectations and add funds to the top performers. 
4. Don’t Be Afraid to Experiment: The live market is where the best tests are performed. Devote a portion of your available trading funds for pure research and development of different strategies. While two of our traders were kind enough to share some of their strategies and techniques in this article, you’ve probably noticed that they did not share any bot templates or give detailed instructions. If your goal is to be a serious trader, developing your own bot configurations is an essential step in your journey. 

Conclusion

The current BTC bull run offers immense opportunities for professional traders, and 3Commas tools are proving to be an essential component for these individuals. Whether you’re deploying Long DCA bots for scalping, timing pullbacks with SmartTrade, or preparing for the next altcoin rally, 3Commas has the features to support your strategies.

Now is the time to optimize your trades, automate with precision, and capitalize on the market’s momentum. Take full advantage of the tools available on 3Commas to make the most of this bull run!

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