1. Market Orders and Price Types
Do You Use a Market Order?
Market orders rely on real-time prices to execute trades. However, 3Commas does not place market orders on the exchange in advance. Instead, we monitor prices in real-time using BID or ASK prices, not the LAST price. Here’s what they mean:
BID Price: The highest price buyers are willing to pay (used to sell in a long trade).
ASK Price: The lowest price sellers are willing to accept (used to buy in a short trade).
LAST Price: The most recent price at which a trade occurred (displayed on charts).
Key Difference: BID is often lower, and ASK is often higher than the LAST price, especially in volatile or low-volume markets.
Example: BID Price vs. LAST Price
Imagine the LAST price on the chart shows $50, but the highest BID is $47. If no one places a higher BID order, even after a large market buy, the BID price will remain at $47, despite the chart showing $50. This discrepancy can cause your trade not to trigger.
That's an exaggerated example, but similar things happen all the time, especially on low volume coins and timeframes like 1 minute. Below is a 1-minute chart's fragment where you can see the LAST price reaches 19.45. The BID price here will be below 19.40, close to 19.36.
You can open any market on the exchange and compare charts with order books to see the difference, especially on sharp price moves.
Tip: To ensure execution during sharp price movements, consider using limit orders.
2. Trailing Features
Do You Use Trailing Take Profit (TTP)?
Trailing Take Profit executes at market rates, meaning BID or ASK prices apply (see above). Here’s how TTP works:
Activation:
The bot monitors live prices from the exchange.
When the price exceeds the trailing take profit level, the bot checks the exchange for confirmation (to avoid false triggers, like a candle “wick”).
This process can take 50ms to several seconds, depending on API load.
Execution:
If the signal is valid, the bot tracks the price until it falls by the trailing deviation percentage. The trade then closes to secure profits.
Important
Trailing Take Profit is not recommended for illiquid markets or large order sizes due to slippage.
For large trades, disable TTP and use limit orders to avoid unexpected results.
Tip: If trades aren’t closing as expected, review your trailing deviation settings and market liquidity.
3. Conditional Orders
Conditional Market Orders
Conditional market orders follow BID or ASK prices, similar to regular market orders. While they are useful for hiding your orders or avoiding locked funds, they may miss rapid price movements.
Solution: Use limit orders if you want to capture sharp price spikes.
Conditional Limit Orders
A conditional limit order has two components:
Condition Price: The price at which the limit order is placed.
Order Price: The price of the limit order added to the order book when the condition is met.
Tips for Setting Conditional Limit Orders:
For buy orders, set the order price slightly higher than the condition price.
For sell orders, set the order price slightly lower than the condition price.
Setting these prices too far apart can result in orders being stuck on the order book.
4. Common Issues and Solutions
Low Volume or Volatile Markets
In low-volume markets, BID/ASK prices can lag significantly behind the LAST price, causing missed trades.
For volatile markets, large price swings may bypass your order conditions.
Solution: Use limit orders and trade in more liquid markets to reduce the risk of missed trades.
Slippage
Slippage occurs when there’s insufficient volume to fill your order at the desired price.
This is common in illiquid markets or with large trade sizes.
Solution: Reduce order size or use limit orders to minimize slippage.
API Latency
Delays in price updates due to high API load can affect trailing and conditional orders.
Solution: Monitor API status and consider disabling trailing features during high load times.
5. Key Recommendations
Use Limit Orders: Ensure trades execute at your desired price, especially during sharp market moves.
Review Trailing Settings: Optimize trailing deviation percentages for better performance in volatile markets.
Trade in Liquid Markets: Illiquid markets increase the risk of slippage and missed trades.
Adjust Conditional Order Settings: Set condition and order prices close enough to avoid stuck orders.
For additional guidance, refer to the related article: Why Did My trade Open in the Wrong Condition?
By understanding how different order types and features work, you can optimize your trading strategy and minimize the risk of missed trades.