A trading signal is a trigger to action, whether it's buying or selling, or choosing which crypto trading pair to trade, and it is generated using private strategies and algorithms created by the providers of these signals.
You can use these signals as a main trading strategy for your 3Commas bots.
3Commas offers a "Marketplace" where you can find various providers offering monthly subscriptions to their signals. Some providers offer their signals for free, others charge for it. As a general rule, the higher the quality of the signals, the higher the subscription price!
How do these Marketplace signals work?
Once subscribed to a signal provider, you create a bot with the settings recommended and given to you on the provider's page (sometimes you need to sign up on their website to access the bot's support and settings).
When the bot is created, you select your chosen signal provider as the "deal start condition". This allows the bot to operate relying on buy or sell signals sent by the provider.
How to choose a Marketplace signal provider:
First of all, please note - to use trading signals, you need to have an “Advanced'' or “PRO” subscription plan. During the three-day trial period, a “PRO” subscription is applied by default, so you can test all the tools and appreciate the benefits of working with 3Commas!
The signal providers can differ in certain parameters:
- 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. And that's not all!
For highly experienced users and thirsty for knowledge beginners, we offer the selection of the most interesting providers on Marketplace:
- Quick Start - providers offering 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;
And for those users who are looking for something special, we leave you the opportunity to create your own search parameters on the Marketplace page!
For more convenient search process, inside each collection you can sort the list of providers by additional parameters:
Before purchasing a subscription, carefully study the signal description:
On the provider's page, you will find the bot settings, the recommended Take Profit and Stop Loss settings, information about the strategy they use and their support contacts.
Also, it is necessary to look at the performance of the signals. You will see the real profit and loss numbers, displayed in % of trades that were 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 the words "No data" are displayed next to a certain signal, it means that either no one has used this signal yet to open a deal, or the deal is still open, not executed yet.
Min and Max profits are also displayed here, these numbers show the maximum profit that the user made using this signal for one particular deal, and the lowest profit made by the bot closing the deal.
Why Min and Max numbers can vary?
1. Even though you use the signals provided to you, users themselves can change some of the bot settings, including the Take Profit percentage (changing these settings is not recommended if you are not confident enough in using bots and signals).
2. Bots of several different traders who are using the same signal can place Take Profit or Stop Loss orders at slightly different price levels or at slightly different times, depending on the exchange.
Some providers offer both Long and Short signals
If you have subscribed to a signal provider that offers both long and short signals and you want to try trading in both directions, make sure you created at least 2 different bots: one for a long position and one for a short position.
Want to learn more about the difference between long and short positions and strategies? Read this article.
Finally, we want to remind you that if you choose to trade using signals, you entrust the management of your funds to a third-party service. Your trading results may differ from the statistics that you see in the signal provider's profile. It all depends on how quickly your order was executed in the order book, on market movements and on the settings of your bots. We strongly recommend that you follow the instructions from the providers themselves, using the "How It Works" link in the profile description.
Happy Trading 💰💰💰