Create a simple DCA bot on 3commas using Free CQS Scalping Signals.
In this article, I will provide step by step instructions to creating your first trading bot using the 3Commas platform.
If you do not have a 3Commas account, please sign up using my link below and get a discount on subscription.
However for now, we are going to create a simple bot using CQS Scalping as a trade start condition.
We will connect 3Commas to our Binance account using an API.
If you do not have a Binance account, you can support this blog and sign up using my referral link below.
You will need to have funded your Binance account with USDT for this trade as this bot will run using USDT pairs.
Connect your 3Commas account to Binance using the guide below.
The minimum I would recommend to start with is about $500 USDT.
You will be running about $240 in trading and keep the balance for emergencies to get out of bad trades.
Bot Setup
Watch this Video by Jose from CQS to setup a CQS Scalping bot.
In the video, Jose explains how to use the scalping signals for a BTC bot.
However, our bot uses USDT instead of BTC.
Since we are in a bull market for BTC, trading BTC pairs means we are effectively shorting BTC while trading BTC pairs and that setup will be discussed in a future article.
The CQS scalping technique works best during Altcoin season, but can also be used in sideways markets.
Creating the Bot
Go to DCA Bots and click on Create Bots on the top right hand side of the page.
Select the “Advanced” tab. There are more opportunities here to customise your DCA bot.
In this “Advanced” tab, right at the top, there are “Main Settings”, where you have the opportunity to give your bot a “Name”, then you can select an “Exchange” ( we are using Binance) , and then you choose the type of your bot — “Simple” or “Composite”.
A “Simple” bot trades only one trading pair, that you choose.
A “Composite” bot gives you the opportunity to use the same settings for many trading pairs at the same time (no more than 100 trading pairs for one bot though).
Give your bot a name.
Now select “Composite bot” which is used for multiple pairs.
“Max active deals “ is the number of concurrent deals that you can take.
For this bot, we can use 3 max deals as long as you have funding available to cover these deals.
Pair Selection
Now we will select all the USDT pairs for trading. Under “Pairs” select USDT_ALL.
We do not want to trade any leveraged tokens which are highly risky and also carry a funding cost.
These tokens have names ending in UP or DOWN (for Binance) e.g. BNBUP, BNBDOWN are leveraged tokens for BNB.
Remove all the leveraged coins from the list by clicking on the Red X next to the coin name.
Finally, you should have a Pairs list of all the USDT pairs minus any UP/DOWN tokens.
In the strategy section, select the “Long” strategy as we are using a Long strategy for our bot.
Next, we will set up the “Profit currency” (coins the bot will take profit in).
“Quote” takes the profit in the transaction currency.
“Base” takes the profit in the coin being traded.
For example, if you trade BTC against USDT, the “Quote” setting will take profit in USDT, and the “Base” setting will take profit in BTC.
Next, we will set the Base Order and Safety Order sizing.
“Base order size” — enter the amount you want the bot to use for opening a deal.
“Safety order size” — enter the amount which your bot will use to do averaging.
For this bot, both the Base Order (BO) and Safety Orders (SO) are the same size.
To start with use the minimum order size which is $10. You can scale this up later, when you have more confidence in the bot.
The “Start order type” is “Limit” as we always want the bot to use Limit Orders in trade.
The “Deal start condition” is the signal which initiates the buy on any USDT pair. There are both free and paid “Deal Start Conditions” .
In our case, we will use CQS Scalping which is a free signal provided to 3Commas users.
Pick CQS Scalping as the “Deal start condition” from the dropdown list.
Additionally, we can add one more start condition for safety.
We can use RSI <70, to ensure that the bot does not open deals on overbought pairs. You can reduce this RSI value for more safety, but the number of deals will also reduce.
Taking Profits
We need to set a “Target Profit” for the bot to know at what level it must close the trade and take profits.
The lower your “Target Profit” , the faster the deals get closed.
Set your “Target Profit” to 1%. Currently, we are aiming for faster closed deals.
You can tweak this later, when you are more comfortable with trading with bots.
We are NOT using Trailing Take Profit in this bot.
“Take profit type” is always “Percentage from total volume”
“Stop Loss”
We will NOT be setting a Stop Loss for this bot, however we will closely monitor trades and take action as required when a trade gets stuck in the red.
“Safety Orders”
There are four settings for the Safety Orders :
“Max safety trades count” — The maximum number of orders for averaging that the bot can execute during the transaction.
“Max active safety trades count” — The maximum number of safety orders that will be placed on the exchange at the same time.
“Price deviation to open safety orders (% from initial order)” — The interval between safety orders in %.
“Safety order volume scale” — The volume of every following safety order will increase in accordance with this specified value. You can read more about it here.
“Safety order step scale” — The spacing between safety orders will increase in accordance with this specified value.
For our bot we will use :
“Max safety trades count” = 3
“Max active safety trades count” = 1
“Price deviation to open safety orders (% from initial order)” = 5
“Safety order volume scale” = 2
“Safety order step scale” = 1
So our bot is taking the first SO at 2%, a second SO at 5% and a third SO at 9.5% from the initial order.
The volume of trade our bot is taking is doubled every order, as we have set the “Safety order volume scale” to 2.
So for a $10 Base Order and $10 Safety Order, our bot will use (10+10+20+40 = 80) if all three safety orders are triggered.
Finally, we have the Advanced Settings Section.
Here we can set additional parameters and the bot will only start a deal when all conditions are met.
We will set “Don’t start deals if the daily volume is less than “ to 10.
This number is in BTC value so the volume of any pair per day must be greater than 10 BTC equivalent per day.
Leave all the remaining parameters as default and click on “Create Bot”
And there you have it, your first Crypto bot on 3Commas.
Alternatively, you can use the link below to copy the bot in 3Commas.
Bot Performance
My results from testing a slightly aggressive version of this bot for a little more than a month so far.
My Base order and Safety Order are $50 sizes and total capital is $1400.
My DCA range is 10% instead of the more conservative 15% setting I have provided above.
Target Profit is 2%.
Note : The above references an opinion and is for information purposes only. It is not intended to be investment advice and may contain affiliate links. Seek a duly licensed professional for investment advice.