Crypto Trade Signals
Crypto Signals are notifications from analysts who provide information about when and which coin to buy or sell. Trading signals are created from technical analysis conducted by experienced and professional traders, and despite the mobility of the cryptocurrency market, signals are highly accurate. Crypto signals fully automate and streamline the trading process, potentially improving outcomes while reducing the risk of deposit drawdown.
Crypto Trade Signals allow users to follow the trades of experienced traders via signals (found in the 3Commas Signal Marketplace). It is the easiest way to begin cryptocurrency trading as it only requires users to connect an exchange account to get started!
What are Crypto Trade Signals?
A trading signal is a trigger or start condition which activates a bot to buy or sell a coin, or choose which crypto trading pair to trade. Signals use private strategies and algorithms created by providers and can be used as a primary trading strategy when using a 3Commas bot. Various providers offer monthly subscriptions to their signals which are available in the Marketplace, and some providers offer their signals for free. As a general rule, however, the higher the price - the better the quality of signal!
How do Crypto Trade Signals work?
The incoming signal originates from the signal provider based on their expert opinion and determines the execution time of the trade for the selected trading pair. The expert trader uses their expertise to create an actionable trading idea based on an analysis of existing and/or historical market conditions, and is constructed by using technical indicators with a time and price relevance.
How do Marketplace Signals work?
Generated by experienced human traders or trading algorithms, crypto signals are based on technical analysis of the market and its movements. A chart tracks the market (e.g., the changes in the exchange rate of a cryptocurrency pair), and the most common chart format is the candlestick chart, which conveniently summarizes the entry and exit points for trades.
Once subscribed to a signals provider, users can create a bot with the recommended settings from the provider's page (users may sometimes have to sign up to the provider’s website to access the bot settings and support). Once the bot is created, users can select their chosen signal provider as the “deal start condition,” which allows the bot to operate by relying on buy or sell signals sent by the provider.
4 simple steps for trading signals
How to choose a Marketplace Signal provider
If users have a paid subscription, they have full access to signal providers in different parameters:
- Free/paid,
- Exchanges they use,
- Trading pairs,
- Long/Short positions,
- Available options of sending a signal to close the deal (profit taking or Stop Loss),
- Stop Loss option being mandatory and preset for the bot, or not recommended.
Users have the option to either deploy:
- Quick Start signals - where providers offer ready-to-use bot configurations,
- Risky - calculated according to the Sharpe ratio, if the provider is not in the top 20%, then it falls into the Risky category;
- Stable - also calculated using the Sharpe ratio. If the provider is in the top 20%, it falls into the Stable category.
Users can also search for their own parameters on the Marketplace page, but please be cautious and carefully study the signal description, performance of signals and provider support information before purchasing a subscription. Users can find the "real" profit and loss numbers displayed in percentage of trades made by bots of users subscribed to these signals. Signal providers do not submit this information themselves, it is automatically gathered by 3Commas to ensure the authenticity of the results.
If users are still unsure which signal to choose, we recommend selecting multiple signal providers and finding out if they have any support communities. These communities are great for traders to converse with other signal users, learn how they find and choose signals, and can indicate the usefulness and responsiveness of the providers’ support communication.
If the words "No data" are displayed next to a signal, it means that no one has used the signal yet to open a deal, or the deal is still open and not yet executed. Min and Max profits are also displayed and indicate the maximum profit a user has earned using the particular signal, and the lowest profit made by the bot closing the deal.
For more Marketplace Signals FAQs, click here.
Why do Min and Max numbers vary?
Traders can alter their bot settings, including the Take Profit percentage. However, if the user is not yet confident using bots and signals, we do not recommend changing the settings, as it affects the percentile performance. Equally, bots used by several different traders with the same signal can place Take Profit or Stop Loss orders at different price levels or times, depending on the exchange.
What about using both Long and Short Signals simultaneously?
Users can subscribe to a signal provider that offers long and short signals. If they wish to trade in both directions, we recommend curating at least two different bots: one for a long and one for a short position. Traders can learn more about the differences between long and short trades here.
Why 3commas Signals
A good signaling service keeps users up-to-date at all times, and provides the latest signals. All signals are created from complex mathematical technical analysis, and 3Commas provides a simple, easy-to-use solution for deploying the signals:
1. Connect exchange account
2. Select a signal from the Marketplace
3. Subscribe to signal
4. Create and launch bot using selected signal
- Save time by placing hundreds of trades which would be manually impossible,
- Improve potential outcomes by utilizing a reliable bot. Automated trading bots can help eliminate FUD and FOMO, two significant factors contributing to many traders' losses,
- 3Commas offers the best scope for personalizing crypto trading bots.
Trade crypto based on technical analysis
- Keep up with current trends and trade according to the market when using trading signals
- Manage risk by using Take Profit and Stop Loss settings
- Available on any device
- Trading signals are automatically corrected based on the asset’s current price
Find out how to create a bot using Marketplace Trading Signals here, and learn how to set the bot using trading signals on 3Commas here.
FAQ
How to use crypto trading signals
Users must connect their exchange and then head to the 3Commas Signals Marketplace to select the signal they would like to use. They must then subscribe to the provider’s signal and create and launch a bot using the selected signal.
What is the probability indicator on crypto trading signals?
Indicators inform traders what the market is currently doing and provide clues as to what the market might do next. From this information, a probability-based prediction can dictate what is most likely to happen next in different scenarios.
How to manage risks using crypto trading signals
When trading crypto, users should deploy the risk-to-reward ratio to determine the upside risk and the potential for gains. When using trading signals, users should use the Sharpe ratio to determine if the provider is in the top 20%.
Are trading signals worth it?
Yes, trading signals are certainly worth your time and investment, especially if you don't have a proven trading strategy that yields positive results.
How do traders get signals?
Head to the 3Commas Signals Marketplace to select and subscribe to a provider and gain access to the signal information needed for the bot to work.
