How to Set Up 3Commas Webhooks for Automated Trading on Binance, Bybit, Bitstamp
We’ve had many requests about how to set up custom webhooks for automated trading on Binance and other exchanges. Here’s how.
- Sign into 3Commas and Tradingview
- Navigate to Create DCA bot in 3Commas
- Enter bot settings, hit save and start bot
- Scroll down to “message for deal start signal”
- Click dropdown menu and copy webhook url
- Open TradingView alert settings
- Paste webhook url into the alert message
- Save TradingView alert settings
And that’s it! A trade will be opened on your connected exchange(s) as soon as the TV alert goes off. Now let’s discuss some basic bot configurations that can be used to trade both long and short strategies with custom TV signals.
3Commas Bot Configuration
Once you have created your account on 3Commas, you can set up bots to your heart’s content. The beauty of this is that you don’t have to turn them on right away. You can keep them for later use or for testing on 3Commas paper trading accounts. This means you can live test bots without risking a penny of real life trading capital!
In this example, we are using a custom TradingView signal to trigger a buy on Bitcoin. We’ll follow steps 1-8 from the intro. In the following graphic, we’re setting up our signal which will be sent to 3Commas. when the condition is met. At that point, the bot will initiate a deal to purchase the first scale-in buy on BTC. This will allow us to get a good price average on BTC if we catch it during oversold conditions following a dramatic drop.
The mean reversion strategy can work quite well under certain market conditions, such as when BTC is trading within a range or an uptrend.
Here is what the settings on our bot look like:
Further down on the bot info page, you will find a code that must be copied and pasted into the TradingView alert message box, in order for it to send signals to your bot. The code will look something line this:
| Message for deal start signal | { “message_type”: “bot”, “bot_id”: 544858, “email_token”: “0bc7fece-5169-4ae9-a26b-956f29fdc046”, “delay_seconds”: 0 |
To close a deal, or “panic sell”, a stop loss can be added to your 3Commas bot configuration. Alternatively, you may create a second bot with your choice of conditions to determine trade invalidation. Once activated, it will monitor conditions and close the active deal created by the first bot if the need arises.
What is a Simple Bot on 3Commas?
According to the 3Commas developer, a simple bot is the best choice when you want to control bots and their deals in the best possible way. This is because they automatically trade one specific pair that you have chosen. With simple bots, you are able to be very selective about what you trade. For example, you may only wish to trade coins that are in an established uptrend. If the goal is to maximize profit and minimize drawdowns, simple bots can help you stay focused on the top performers with the best liquidity.
What is a Simple Short Bot on 3Commas?
The simple short bot allows us to scale out part of our position when the RSI level (or other indicator) reaches a peak, and buy that portion back on a subsequent dip.
This is one of our favourite 3Commas features, for one simple reason. When we find a coin that we want to accumulate, we can allocate some funds to it with the idea of building that position as time goes on.
The same rules of scaling into a position applies to scaling out, and that’s where the safety orders come in handy. In case the coin pumps more than expected, our position will gradually be scaled out into the move with profit being secured on the way up. It is a no-lose situation.
The built-in settings now include enough TA presets for adequate results, but for more options and flexibility you can build your own with custom settings from your TradingView account.
Final Thoughts
TradingView custom signals, when used with 3Commas bots, can give traders a huge advantage and allow them to scale in-and-out of positions with ease. These tools working in tandem with one another can allow one to maximize profit and minimize drawdowns.
Many more examples could be illustrated here, but the main purpose is to show the utility of this outstanding 3Commas feature. One can use it to trade with a wide variety of methods. Strategies including simple moving average crossovers, momentum flips, mean reversion, and custom scripts can be traded by your 3Commas bots.
One word of advice would be to stick with higher timeframes (minimum 4HR) when live trading or testing strategies in paper trade mode. Doing so will promote a smoother equity curve and/or generate more accurate testing results over any given period of time.
