I TEST "3COMMAS SIMPLE CRYPTO TRADING BOT TUTORIAL - HOW I MADE $15,000 PROFIT IN A MONTH!"
today we're going to be looking at dollar cost average bots so let's get straight to it hey trader devs and welcome back to my channel my name's david and on this channel i go through youtube to find trading strategies which i then use code to debunk the bad ones and find the good ones today we're going to be looking at dollar dollar sorry dollar average cost and bots which are provided by three commas and other api providers like that found this strategy that we're going to be discussing today and back testing on a channel called trade alts you'll be able to find the image here another fantastic youtuber channel which goes through back testing well actually goes through setting up bots on three commas okay the best thing we can do is get over to my computer look at the fundamentals of this trading strategy how to set up the bots on three commas and also we'll backtest it using code if i could just ask for a couple of seconds of your time to give me a big thumbs up uh helps me to get this channel growing and also more people into the community and more from the merrier in the community if you like these kind of content don't forget also to subscribe and you can join my patreon where you get to chat with me on discord and you get access to a load of for extra strategies that i don't give away for free but they also are most of my work is free on trading view okay okay let's go over to the computer and start having a look at this training strategy okay here we are on my computer very quickly let me just show you the uh the youtuber that actually started that this strategy called trade-outs he has an absolutely fantastic awesome community behind him on telegram and also on discord i wait it's well worth going to have a look at this channel and also subscribing just like me right okay what we're gonna do today is very quickly go over three commas setting up the bots going through all of his strategy on how to set up the bots and then i'm gonna go over to trading view as you can see here and we're gonna look at some of the results okay okay so three commas is a bot platform for building bots very quickly with no code a very good system uh they sometimes have a couple of problems with ups and downs as the market dumps but most exchanges and things like that do uh i've been using the three commas for quite a long time and now i have a yearly plan and i've got to say that i'm pretty happy with it now they do have plans which are for free here which allows you one uh dca bot but i currently have the forty nine dollar plan here when i paid it annually uh you can get access for three days at testing this so you can give it a good old test allow paper trading etc uh there you go so that is the idea of three commas you can find the link down in the description uh gives a kick back to our channel and also you get a special offer right okay so i'm going to log into my account okay here is my account on three commas right once you've logged in this is the screen that you'll get you've got the bitcoin prices up here you have on your right left hand side we have our exchanges here so you'll be connecting up to something like binance or buy bit we have a smart trading panel here which i don't use particularly much it helps you to trade better the dca bots is the things that we're going to be looking at today and uh going to be setting up we have a grid bot and option bot sensor marketplace the marketplace is where you can buy uh other people's signals i don't use that either myself but uh today we're going to be looking at the dca bots right okay if we scroll over here we can see when we're clicking on my deals we have the bots are actually active at the moment uh we can see uh that i have deals are going on in a btc avx algo luna uni and dodge today we had the current pump so actually everything's slightly in the red because it's obviously brought a bit high up but that's not a problem because it actually buys as the it drops back down now let me have a let me explain that a little bit better on how uh dc bots actually work well what actually happens i'm going to go over to a chart here explanation of how i understand dca bots work on three commas right the idea is is that you activate the bot and the bot goes away and automatically buys uh currency now he isn't trying to get the best price unless you uh configure a strategy what it does is it actually purchases uh the cryptocurrency and if the cryptocurrency continues to dip and doesn't go up by the 1.5 percent which we'll configure as the take profit right now this is the take profit level so i'm going to put that as take profit here tp and we're going to change the color to green okay now that didn't work oh yes we did it it was a text it went style green okay so now it's green okay so that's our take profit level now okay as the price starts going down in a trade-off strategy what happens is we activate safety orders uh this one would have been twenty dollars and these lower as it starts dropping we buy fifty dollars here i'm gonna change the color of that one as well let's make that a nice pinky color right okay so that would by two percent lower i don't know if that's two percent but it's just a example and then it would continue buying as we dip 50 dollar orders all the way down to about here now this obviously would be like that now that brings our uh average orders uh average buy price down as we keep buying and buying and buying so let's say that we're roughly brought down to here thanks to the safety orders and the take profit holder obviously would be now 1.5 of that so it would actually be around just here so it would actually be about here which is roughly there so as you can see as the orders get as the cryptocurrency starts to dump we start purchasing more of the cryptocurrency so that our average price is actually lower so that our take profit is also much lower so it's easier to get get it to this point okay so that is the strategy uh as i said it's actually a strategy which is pretty simple to set up in uh three commas we're going to set up a bot right now with the same settings as uh as trade outs and we're also going to then back test it and try and improve on the numbers to get better results right let's go right here we are back on three commas right to set up a bot is pretty simple we literally go over here to the dc a bot click the plus button here then we're going to start building a box well uh oh to trade all actually builds one bot per pair you can actually use multi pairs so the reason he says that he uses one pair is it's easier in the long run to look after the bots each and every one of them would be slightly different settings so uh for instance maybe bitcoin as it's more stable than other altcoins uh it would be that they're more wiser to put more money into that than others now that's not exactly what he says but i think that's the gist of things right so the idea here is we're going to be setting up a bot right to find the pairs that we're going to be doing i tend to use the top 20 pairs here uh i know that uh trader actually reduced his from about 50 to about 20 i believe recently uh as the market dropped and not long ago uh so we're going to be taking these 20 here where we're going to leave out obviously the stable coins uh and at the moment i'm going to be building a what let's go for litecoin okay and i haven't got a coin bot so i'm going to be building a litecoin box so we're going to start by giving it a name ltd a usdb usdb right i actually use usdb instead of usdt because when you're trading on binance actually fees are actually reduced for trading with the usdb and i believe that i heard somewhere that uh centennial the end of the year sometime they are actually free right so we're going to be going here we're going to be choosing our pair we've got a single pair so i'm going to be using ltc usd b ah sorry b usd ah right the wrong way around okay fantastic uh we're gonna be creating a long only bot we're gonna want our uh profit in uh ltc some people prefer to have it in a b usd because of the recent dump i actually like to accumulate free a cryptocurrency as it's going up uh we're going to create a base order of 20 and we're going to double that by for the safety order now recently he also took it up to 50 from 40. we're going to be using
the market limit order sorry the type of order as limit orders the reason being is that also reduce our fee when using usd b not b usd usb usd and not usd b so it's also saving us money now there is ways of starting the deals we're going to be looking at that on back testing in a minute trade uh trade alt actually uses the open new trades asap so that means so when using the open uh trades at asap it literally means that it's gonna fire a trade one after the other as they close as the market dips this may not be the best way to do things but it seems to work for him so we're going to do that with ours and then maybe in future videos i will set up a uh set up a trading view indicator so that we can stop buying when the market dips too much okay let's have a look at this again okay so uh we're going to leave that as the same settings as trader alt right he takes profit at 1.25 recently it was 1.5 before uh we're also going to backtest the two so i'm going to put it at 1.25 for the moment it doesn't use a trailing uh another thing that we will be back testing with a trading view in a moment to see if it works better with a training stop or not right there's stop loss now in trade uh trade also strategy we don't activate the stop loss we leave it just to continue buying the dip okay then we go down to the the safety orders now that is the orders that are placed after the main base order so we're going to be looking at this here to decrease the average price now maximum safety orders i put to 10 i believe it was uh 9 or 10 and the maximum active safety trade council is just one that's the breast deviation here trade outputs as two the safety order volume scale i believe was 0.5 1.05 and the step up scale was
one all of these safety order settings we will be testing and you'll be able to test on the trading view uh platform the trading view indicator that i made so uh the next thing that we're doing is looking at the advanced settings advanced settings uh nothing really changes on here except for the maximum price to open deal i know we didn't even have that open deals and stop none of that right okay everything was completely left as it is right now what we do is then we create the bot we click here create bot and we press start and that's your bot started okay now i'm back on my my deals page here as you can see uh it seems like ltc a bsd b usd has actually activated a purchase and i'm currently down at 0.05 cents if i click the refresh and it's 0.06 6 cents so what happens as i said is as this goes down it continues buying so it decreases the average price now i've been subscribed to trade outs system for a long time i've had about 20 bots as i said i've taken the top 20 cryptocurrencies and i have just left them behind now you have to have nerves of steel when everything is actually crashing like they did a couple of months ago to leave your bots to actually run and you also have to have enough money in your account to cover the safety orders for all of those uh bots now that uh now although i did i actually had to even open a couple of uh extra safety orders for uh some of the currencies but as the market has actually come back up we have recovered the money and actually earned more another good thing is that i'm actually always taking the profit in a cryptocurrency and it gives back me my busd once the take profit is taken which means that i'm actually creating crypto bags myself uh just by sitting passively leaving them to run by itself right okay so that is simply how to set them up as i said earlier trade on actually uses one bot per crypto pair so uh he's actually got about 50 bucks you can use multiple pairs in one side bot in one single bot sorry but the the best idea i believe as well is to have one pair per bot uh that way we can optimize the settings for each of them now now thanks to the trading view strategy that i'm going to show you in a minute that we can actually optimize them and find out roughly what the back testing results were so that we can get the best settings for our bots right let's have a look at that see how we can improve on this and get better settings and don't forget you can also download all of these settings i will share my best settings in my discord channel which you can get access to on patreon okay let's go back over to the computer okay back here on the computer right let's go back over to trading view here i'm going to remove these lovely aligns here very quickly and we're going to start looking at how we code in the indicator right okay so i actually found an indicator which helped me very much i will put the link down the description to the actual original indicator and this is what i've come up with myself all right okay okay as always we have our david tech dashboard here and as you can see we are as cr uh best we can we are emulating the uh bot that is created with three commas so as you can see we're doing our base order here and as price comes down we buy a safety order one safety order two and as it comes up we hit our take profits so let's have a start having a look at the bank testing results to see how okay we're actually going to be looking at this slightly differently than other strategies that i have created today as they it works in a different way with the safety orders etc as you can see my dashboard is a lot less colorful than normal over here with no traffic light system and even most of the information here is absolutely useless but i've added it anyway most important thing that we're going to be doing is trying to increase the net profit uh here which is also over here which is 18.56 percent we'll look at that in a second even the percent profit profitable actually doesn't really make much sense inside this strategy because whereas we are following the curve as it comes down buying uh the dips okay uh profit factor maybe we'll look at afterwards uh the max drawdown also as we're buying the dips uh doesn't always make particularly much sense because we're buying as the drawdown comes down so as the last order would have been about 2.12 after last order uh right okay maybe we will try and decrease the number of trades because that would mean that we have a decreasing number of safety orders that the safety orders maximum safety orders used with try and decrease as well that kind of thing we can try and decrease with the strategy so as i said earlier what we're going to be doing is we're going to be trying to optimize this the best possible but after the video i will also continue to optimize all of the coins that i actually use in the top 20 off of coin at market cap uh you'll be able to download those settings in a text file outside inside our disk at cord channel what's great about the community is everybody seems to be sharing their best settings as well so it's not just me we're over three or four hundred now uh people are sharing the settings so okay let's start trying to optimize uh the strategy so that we can get the best settings okay so what we're going to do is go into this code button here and as you can see pre-defined i have actually pre-defined all of the uh settings as i have on the three commas so we're taking profit at 1.5 percent no trading stop no stop loss uh we're using a fixed amount
which is 20 and 50 for safety orders max number of safety orders was nine deviation in price was two we had the safety order volume scout is zero point uh no one point zero five one as and the safety orders step scout was one we're going to be using the deal start condition as stock asap uh none of this is actually uh used at the moment because we're using the star asap we can also use a long or short box we're using long bots we're only buying as longs sorry right okay we can also define the times of the test the back test so we can backtest on certain periods etc okay the first thing i'd like to test is the difference in take profit because i know that uh in the first video of uh tradeouts he actually takes profit at 1.5 and then he decreased that to 1.25 so we're actually gonna see whether that gives us a better uh amount of net profit or not uh actually it decreased the net profit uh we increased the number of trades i believe let's have a look back again yes even decree increased the number of trades but we decreased our net profit and although we actually decreased than the take profit we still had a max number of safety orders used ever nine okay so that so personally i would still leave this at 1.5 as it seems to give better results let's try maybe even a two percent to see whether that gives us a better okay that gives us a net profit of 21 so maybe two would even be better let's continue increasing that okay i have been playing around with it and it seems like to me that actually 2.5 actually seems to be a good number where we get 26 net profit on what we've actually added okay uh next what we're going to be doing is looking to find out whether we add a trading stop now we can add a trading stop at one percent so if it dips at more than one percent it continues trading stop that has actually decreased our net profit i believe yes it's decreased it by one percent so if i go 1.5 percent or maybe even two percent okay so it probably is better to leave your trading profit off so is that setting was good i'm going to continue playing around with this uh and i'll get back to you in about five minutes spending several hours rattling my brain smashing my head against my computer and finally finding a settings which are good for me it seems that tradeouts settings were pretty darn right and they were one of the better settings that i come up with as well so let's get over the computer we're going to discuss that and we'll also have a look at what the results could potentially be for this account with a couple of thousand dollars in the top 20 cryptocurrencies so let's have a look oh yeah here we are back at my computer okay as i said earlier i haven't really managed to change much because the problem is is as soon as you start changing the settings for the safety orders you end up falling down a trap of seeing let's just change this to two you see the net profit goes up humongously to 278 percent but as you can see on uh three commas if you take up to two here you can see this wonderful tool here that actually tells you how much you'll be spending and if all of the uh all of the uh activated orders were done you'd need 6.5 million dollars to fund your bot
which is definitely not what i want so let me take that back to 1.0 okay so 1.05 it seems to be the sweet spot you can i did actually try uh safety order volume as 1.1 and 1.2 but the return on investment wasn't good enough and we had to also increase our budget to almost two thousand dollars instead of one point one thousand one hundred dollars for each bot okay so that really was not what i wanted although as i said it did increase let me have a look very quickly increased our net profit up to fifteen percent instead of twelve so really not worth uh worth the extra 300 investment in my opinion other things that i tested was taking up the base for uh order uh to 25 the problem with that is is that where we'd have to increase the number of safety orders i've worked out that 16 seems to be the the maximum number of safety orders that ever activated uh for the the period of three months uh maximum safety countless right uh the deviation from the main order was uh two percent now if you take this up slightly you can uh increase the decrease the number of safety bots that you use but you're also going to decrease your earning profit so two seems to be the seat spot as well the only real thing that i actually did manage to change was the net profit which i put at 2.1 percent uh if you take it down to 1.5 it decreases considerably our net profit to 9 and if you go all the way back to 1.25 as i said earlier we're gonna be down to nine percent so if you take it up to two to two point one percent this is where i found that that my speech what was with twelve plus twelve almost thirteen percent on your net profit there so if you can wait out a little bit uh i suggest well i personally i'm going to be waiting for 2.1
as it always seems to go up by that 2.1 percent anyway we're also decreasing the number of bots that are used so for me it's a win-win situation other than that i also tried the deal at start conditions i tried this here which is your tv presets it didn't give me enough of a extra win or decrease the number of orders enough for me to want to uh try it let me try on strong very quickly strong here decreased us to 10 and took about 40 orders off week gave us roughly the same amount of orders i believe just give me a couple of seconds he had 10 different orders and it gave us one percent less so maybe i would put that on a week just so that i didn't have to put the extra 10 orders in to make it 0.5 percent on the on on the net profit other than that that was pretty much it that was all i come up with as uh changes to the offers so let's go to our calculator very quickly and see what would have to uh have her to fund at this segment on the calculator here if i go over to our three commas now we've got 16 bots which is our maximum number of bots and we're at zero at 1.05 increase
that means that each of our bots would have to have 1 200 to be able to fund it now if we're going to be doing it on the top 20 cryptocurrencies uh times 20 that means that we're going to need 24 000 to fund our account okay and we're going to be aiming for a net profit of 12 roughly on the on the amount so that's going to be 186 dollars times twenty that's going to give us three thousand seven hundred dollars return now now this is completely imaginary and could be completely different to what we're doing we could also compound we could increase the amount of uh money each time we make an order here our base orders as the crown grows uh we could also earn less on some cryptocurrencies or more on other ones so this 12 percent may not be 12 on other cryptocurrencies if we literally export these settings over to ethereum for example we can see that we are earning 17 so that's better let's go over to xrp 17 on xrp ada 22 on ada so as i said each and every one of them is completely different i mean that completely changes our uh our outcome let's have a look at the calculator again if we go 300 and 335 times 20 if we manage to make that that's six thousand seven hundred dollars every three months so so completely different results for every outcome so okay the last thing i'm going to do is set up a bot for doge very quickly on three commas these are the settings which is the settings we just discussed it gives almost a 30 return on investment so i'm going to show you how i'd export these settings very quickly over to three commas right okay so i'm gonna split my screen like this i can see the settings as well let me just increase that enough right okay that's fantastic and we have our three commas here i'm going to click the plus button here okay and then we're going to give our dot our bot a name b u s d dot and we're going to look for doge here oops so we're going to go d and b usd be usd there we go right it's going to be the same as the others we're going to be 20 and 50 here as our base market we're gonna we're also going to keep the doge as doge that's my personal preference you don't have to uh limit orders so we don't have fees we're gonna add here our trading view on 15 minutes and a buy but not a strong buy we're going to have 2.1 profit as our limit no stop loss maximum uh trades is going to be 16 i'll put it on 17 just in case uh deviation was a two and then we're going to do a 1.05 as i discussed earlier in this safety orders volume scale okay and everything else that stays as is that means that we will technically need 1 300 uh in our account and to run this bot if it all steps as much as that okay let's create the bot and press start OK now that will hopefully start the bot and buy us some doge as soon as it uh hits the 15-minute buyer signal on trading view okay guys we've managed to get quite a lot done today we've managed to back test over several hundred results this dca strategy uh shows that trade at alt's uh settings were pretty good and pretty spun on a couple of changes that i would have made myself to my strategy but they were pretty spot on anyway do go and visit his uh youtube channel there's absolutely loads of resources and interesting information for anybody setting up bots also don't forget to give this video a thumbs up if you enjoyed it and don't forget to subscribe i'm adding content every week three days a week now so chess testing back testing strategies and also investment ideas i hope you enjoyed the video that leaves me to wish you a happy monday
2021-10-19 13:21
