How to use 3COMMAS with Binance & TradingView alerts to AUTO-TRADE CRYPTO

hi traders welcome back to another pinescript lesson my name is matt from the art of trading and today's video is going to be covering how to use the three commas third-party api with binance using trading view alerts now that's a bit of a mouthful i know but stick with me and i'll guide you through this today don't worry it's not as hard as it sounds so before we begin here is a quick script i knocked up um over the past couple of days playing around with three commas and trying to get a profitable strategy so i have a profitable strategy here um technically speaking this is profitable to return to 43 with a 9 drawdown and has a profit factor of 1.6 but this strategy is not ideal you would have theoretically made a lot more money just buying and holding this market instead of running the strategy but it is a profitable strategy and the strategy itself is not necessarily relevant for today's lesson because it's all about connecting your scripts your strategies with the three commas api and i'm just using this strategy script as an example so before we continue this lesson isn't going to be too heavy on the coding side of things i'm not going to spend too much time running over what this script does i'm just going to walk you through how to connect your binance account to your three commas account and then how to set up alerts on the training view platform to communicate with three commas to execute entries and exits on binance so before we continue uh this script here is very simple it's just a standard strategy script the only thing i've changed here is initial capital and default quantity value that's my position size so by default this strategy is testing using 10 000 us dollars and my position size is 10 000 us dollars so i'm using all of my account 100 of my account on each trade i'm not using margin in this example so i'm basically just profiting off the actual percentage increases and declines in the market so the market goes up like this trade for example we entered long at the open of this bar we exited at the close of this bar and that returned 28 or 78 dollars on my account i'll just quickly run you through what the script is actually doing and then we'll head over to binance and three commas and set up our api connection so this script is extremely simple in fact it's too simple i wouldn't trade this if i were you i would make this a little more complicated add a few more filters even though it is profitable and it's decently profitable it only has a 43 win rate but it has a 1.6 average risk reward and so uh it is profitable we had a nine percent drawdown with a 42 gain on the one minute chart over the past 14 or 15 days so that's just decently profitable however that's only because of the current market conditions in crypto you see we're in a bull market right now if we weren't in a bull market i doubt that this strategy would be as profitable as it is so just keep that in mind this is just for example our purposes but anyway what this script is doing is when the rsi goes oversold at 30 the script waits for that bar to print uh to close to confirm that signal and then we enter at the close of that bar so in this example here the rsi went oversold this bar closed as oversold the script entered long on the next bar on the open of the next bar with a 180r stop loss below the entry and so the script entered long waited until price action retraced got back above this 50 line on the rsi and then when that bar closed to confirm that 50 line that price had reclaimed the 50 mark on the rsi we exited our position for a profit so this is a long only strategy we're not using margin we're not using leverage we're not going short just buying dips in the market and then selling on retracements extremely simple script but if there's one thing i've learned in the past five years of trading it's that simple works so that's why i've kept the script simple you don't need to have a million indicators and a million different entry and exit reasons in order to create a profitable strategy so here we are on the three commas dashboard 3commas.com now i'm not going to go over how to create an account hopefully you can work that part out on your own but here we are on the dashboard and this is kind of what your account will look like before you set anything up so today's lesson is going to be covering how to use binance if you don't have a binance account you can create an account here using their affiliate link and then you get a free 30 day three comments pro subscription but i'm assuming that most of you will already have a binance account so i'm not going to go over that today we're just going to jump over to binance and get our api key to connect to three commas but before we do that we need to come down here to my exchanges so click on that and then for today's lesson we're obviously doing binance but there are dozens of other markers here you can choose from it's pretty much the same process for all of them the only thing that will be different is the interface and where you need to go to get your api key and all of that but today we're just going to work with binance i'm just going to call this uh binance test and now we need to go and get our api key and our api secret oh secrets i'm such a dork hang on so here we are on binance i've hidden my millions of dollars worth of bitcoin i'm just kidding i don't have that much but i wish i did so here we are on the binance homepage log in your account here and then where you need to go to get your api key is this guy up here so hover your mouse over this icon come down to api management click on that let your crappy australian internet load and then you need to give your api key a label so i'm just going to call this three commas and then i'm going to click create api so to generate an api key if you've set up two-factor authentication like i have you'll need to get an email code and type in your google verification code so i'm going to do that now there we go my api key is being created i'm going to leave these this information on the screen normally you would blur this information do not give this information out to anyone else or they have full access to your account and they can trade on your behalf and cause all kinds of mischief but i'm going to delete this api key after i'm done so it doesn't matter in my case what we need to do here is copy the api key you don't need to change any of these settings here we just need to copy these two api key and api secret over into three commas so paste the api key in the api key box and then paste your api secret into the api secret text box and click connect and exchange that simple if you've got your api keys correctly copied three commas do its thing and pretty soon you will be connected there we go we are now connected to binance and we can set up our first trading bot but before we do that it's a good idea to create a paper account on three commas so that you can do some testing make sure everything's set up properly without risking your real money or cryptocurrency so come up to this drop down box here click on settings and then scroll down until you see paper trading so when i created my account initially this was turned off by default so yours probably will be too you need to click on this show button to create a paper account and a paper account is basically a demo trading account like any other exchange or forex broker or stockbroker would give you and this is just pretend money to play around with to make sure you've got everything set up correctly so in order to tell three commas you want to trade on your paper account and not your real account you need to click up here on paper trading account and that will make any bots you create operate based on this paper trading balance so that's it we are connected to binance we have everything ready to go so last but not least we need to set up our trading bot so let's come over here to dca bot there are dozens of different ways to trade automatically through three commas you don't need to use trading view you can use their inbuilt indicators and trading conditions and smart bots but today's lesson we're just going to cover trading view bots so come over to dca bot click on that and if you haven't created a three commas bot before your interface should look like this it should just be blank you need to come over here click create bot and by default you will get this interface here set on gordon this gordon tab i guess that's what three commas named their default bot we want to go to advanced so click on the advanced tab here and that will give you access to modify all of these advanced settings here and don't worry it's a bit overwhelming at first even i was like what is all of this when i first logged in it's a bit weird i'm not sure why they set it up this way but we're not going to use most of these settings so we we're basically just going to go through and turn them off we're going to let our trading view script determine most of these parameters so first things first let's start with the main settings panel first thing we need to do is name our bot so i'm going to name my bot binance test and you can choose which account you're going to set this to just leave it as paper account for now now there's two different types of bots we can use here we can use simple which i believe only trades one currency pair one crypto market or you can choose composite which will trade multiple currency pairs today's lesson is just going to focus on simple so make sure you've set your bot type to simple next up we have our pairs these are the pairs we can choose to trade there's quite a few of them here and you can trade pretty much all of these coins against binance coin bitcoin ethereum and us tether so today's example i'm just going to focus on ada usd tether we could set this to bitcoin if we wanted to but i'll leave it as us tether for now because that makes our position sizing just a little bit easier so next up we have our strategy section so first up we have strategy type do we want to be a long bot or a short bot today's bot is going to be just a long bot we're just buying the market and selling for profit we're not going to be short selling the profit currency is going to be left as usd tether and if you're not sure what any of these settings do they have a pretty helpful little question mark here that will give you a tool tip and links to more information on these settings so if i don't do a good job of explaining them make sure you click on these little question marks and go and read up on what these settings do but we're going to leave all of this here as it is the one thing i will do is just increase my position size i'll just go to 100 us dollars for now and then finally you have your start order type you can either use a market order which will just enter at the current market price or a limit order which will obviously place a limit order at a certain price and your order must be filled at the price you tell the bot to fill it at depending on what market you're trading and the liquidity of that market it's probably a good idea to leave it on limit but because i'm trading a top 10 crypto i'm not too worried about limit i can feel pretty safe trading the market price i'm unlikely to be too affected by slippage especially with a small order size like this if i was trading 10 000 or more i probably set it to limit so that's our strategy settings um your base order size is your actual position size so when your trade is first executed this is the initial position size that the bot will enter safety order size is for averaging your position so basically if you're using limit for example and you set your buy price at let's say a dollar you can set the bot up using the safety orders so that you first buy x amount of percentage of your position at a dollar and then the bot will set limit orders up to whatever you set here so you can have five different se i don't know why they call them safety trades that put me off at first but basically this is averaging into your position so you could set your first position entry at a dollar and then your second at 95 cents and then your third at 90 cents your fourth at 80 cents and your fifth at 75 cents for examples that way if the market continues lower after filling you on your first initial order you can average your position down and get your dollar cost average down as the market goes lower which theoretically means you can make more money if the trade goes in your favor but to be honest with you this is just a bit convoluted to me i'm not sure why you would really want to do this certain strategies obviously would call for this but in our case in today's example i'm turning all of this off so i'm just going to set everything to zero i'm going to set my safety order size to the minimum which is actually 10 us dollars you can't go lower than 10 and we're not actually going to use our safety orders we're not going to use any averaging we're just going to have a one in one out approach so our script is going to enter our trades at market based on whatever price our signal is generated at and we're going to exit our position at market as well when our take profit signal is detected so this is how i'm setting up my bot my strategy is long only my profit currency is us tether my base order size my position size is 100 us dollars i'm not using safety orders so this is irrelevant and my start order type is going to be a market order next up we have our deal start condition so there are a lot of different conditions here inbuilt conditions based on the three commas signals that they've created today we're just going to use training view custom signal so we are going to send our signals from our trading view alerts to three commas api and the three comma system is going to enter and exit our trades for us based on our trading view signals so make sure to set your deal start condition to tradingview custom signal uh next up we have our take profit and our stop loss so our script has an inbuilt stop loss so we're not going to turn stop loss on for this lesson and you can't turn take profit off for some reason so how this works is when we enter our position in this example say we enter it at market if you leave this as it is and you leave this as one percent then your position will be exited if the market moves one percent into profit now because our script is going to determine when to enter exit our trades we don't want to use a target profit percentage now because there's no way to actually turn this off i just set this to 100 so if the coin goes up 100 our position will be liquidated but the odds of that are pretty slim unless you're trading a very illiquid coin or elon musk comes along and buys up the entire market in one market order this isn't going to happen so by setting our target profit to 100 that ensures that our target profit percent is never hit and that lets our script determine when we enter or exit our trade so because we've set our take profit to such a high number take profit type doesn't matter so you can come and play around with these click these question marks and read up on these settings if you want to use these settings in your bot you also have a trailing stop which trails your stop-loss based on a percentage of price from your entry the reason i'm not using any of this is because i can't back-test it i don't know if it's profitable so i want to rely on my trading view script to make all these decisions so we're not using take profit we're not using loss because our script also has a stop loss built in and we're not using safety orders so all of these are turned down to their minimum value so this whole section here is perhaps something we could cover in another lesson if you guys are interested in that but i doubt many of you are if you're using custom trading view scripts to manage your trades and then finally we have the advanced settings section i don't touch any of this but you can make your bot only enter trades if the daily volume is above a certain number uh in bitcoin so bitcoin traded so i guess you could use this as a filter to not trade this script on low volume days when there isn't much liquidity and then we have minimum price to open deal and maximum price to open deal they're pretty self-explanatory these are just price filters and then you have cool down between deals i'd probably set this just because we're trading a one minute chart strategy i'm going to set this to 60 seconds that way if something goes wrong with our script and it pumps out a bunch of signals in a row we don't get a flood of orders going into the market so this will only allow the script to send orders to binance once every 60 seconds and then we have open deals and stop you can use this to limit how many trades your bot can take before the bot stops i'm not going to touch anything here except for cool down between deals or trades so that's it our trading bot is now set up and ready to receive signals from our script so i'm going to click create bot here and i've got an error here this setting must be greater than 0.2 so i don't know why it lets me set it to that let me set it to 0.21 create bot and this should work now there we go so there's so much building going on around my house at the moment it's trucks driving past every 10 minutes so there we go we have our bot successfully set up and saved let's click start bot and the bot is now turned on so let's click ok and the bot is running so now there's just a couple more things we need to do in order to get our script to communicate with three commas the first thing we need to do is go and get the webhook url i'll leave a link to this article in the video description but this article here will explain exactly what we need to do in order to set up our tradingview custom signals and it also contains the webhook url so if we scroll down here should be here somewhere there it is so we need to copy this url and i'm just going to open notepad real quick and i'm going to paste this url into notepad because now we need to go and get the actual alert commands to add to our alerts to tell the bot what to do so this is our webhook url which receives our trading signals and relays that to our trading bot on three commas next up we need to go and get the actual commands we're going to use to manage our trades so if we come back to our three commas bot information screen here and if you lose this screen you can get back to it by just clicking on dca bot over here and then scrolling down to find your bot and just click on the name of your bot and that will take you back to the bot information screen and if you scroll down to the bottom of this screen there's a whole list here of trading messages that we can send to our webhook url which will manage our trades for us so the only two messages we're going to be using today are these two so we're going to use message for deal start signal so this is the message to initiate your trade remember we set the bot up to initiate our trades at market price so when the bot receives this message we'll just open a trade with 100 us dollars which is what we set our base order size to so when it receives this start signal this deal star signal it will buy 100 us tether worth of ada and if it receives the message to close order at market price it will liquidate our position at the current market price so we're going to use both of these signals here so i'm going to copy this signal into my notepad and also this message here and that's all we need to wrap up this lesson so let's jump over to the trading view charts and set up our alerts so in order to confirm that our bot is set up properly i'm going to get our messages here i'm going to put this on my second screen and i'm going to create a alert at the current market price i'm going to turn on webhook url now i've already got it saved here because i've used it in the past but you can copy and paste that url into this web hook input here i'm going to turn send email off and notify an app because i don't want to be getting a message 700 times a day whenever my bot takes a trade i'm going to title this alert just three commas and the message here is where we input our commands to our bot so the message to open a trade is this one here so paste that command in there and if this alert gets triggered it should open a trade on the bot so let's create that alert wait and see what happens i may need to move this alert to the current price 8368 save the alert there we go the alert has been triggered let's go and check our bot so here's our events messages we're on our paper trading account so it should have opened a paper trading position let me refresh the page and see what happens there we go so our trade has been initialized we've bought 120 ada at the market price perfect there we go so now let's test the uh close trade command come back here set a new alert everything is all right make sure your webhook url is inputted there paste our exit command into here and click create now that alerts been triggered let's go back to three commas refresh the page and there we go we have closed our trade at market for a four cent loss and so our bot is working perfect the last thing we need to do is set up our trading view script alerts so let's go over to the pine editor and do that and then we can wrap up this lesson so you'll notice on my screen that i have all these messages drawing these text messages drawing all over my charts so these are strategy comments that occur within my pine code so i'm not going to go over what this script does because this lesson will be too long i may cover this in a future lesson if i get time but i'll definitely be putting this script up in the mastery course if you want to check that out just head to pinescriptmastery.com and i have a bunch of profitable strategies over there strategy scripts that you could use uh these command functions with three commas to trade crypto automatically and profitably so the way i've set up my three commas trading strategy script my trading view strategy script is i'm using the strategy.entry and exit functions like you normally would but i'm also including a comment here and this comment contains my bot command so whenever a trade is entered or exited i can use this strategy comment this order comment to tell my bot what to do and the way this would work is i'd come up here i'd select my script from this condition drop down box and whenever a order is triggered by this script i can use one of these special placeholder tags to reference my order comment so if i click on this little question mark here trading view has a list of special placeholders we can use to reference in our alerts if i come down to strategy what we want to reference here is our strategy.order.comment special placeholder and this returns the comment of the executed order the string used in the comment parameter in one of the function calls generating orders so strategy.entry exit or order so normally this placeholder would be useless but because we are specifying our strategy order comment here the parameter in our function call we can reference that in our alert message so by pasting that special placeholder in here that is the equivalent of pasting in my bot entry or exit command like this now there is one thing i had to do in order to make this comment work and that's use a bunch of what's called escape characters string escape characters so you can see in this message here my alert command is on one line but i've had to use a bunch of special escape characters in order to make this string compile so if i remove this message here and this one down here and i paste in my bot command into this comment parameter if i just try to save the script now i'll get a bunch of errors because the script won't compile because of the way pinescript interprets or compiles our code you can see that all of these messages here have quotation marks and in pine script you can only write out a string so this comment parameter can only be one single string and that string must be contained between two of these quotation marks but this message has multiple quotation marks so the way we fix that is using the backslash escape character so by putting a backslash in front of all of these quotation marks this is telling panscript that we want these quotation marks to be included in the string and you can see that as i add these backslashes in front of our quotation marks the color coding of this line changes as we are turning this into one single string uh by using this escape character on our quotation marks so in order to make our command compile let me just delete all this again paste in our entry command and just add all of these backslashes in front of all of these quotation marks like so and then i'm also going to add the new line character that's represented by a backslash and then the character n that tells pine script to create a new line or like that just like pressing enter if you were typing this message out so by adding a new line to the end of each line here and then removing all of the spaces here to turn this into a single line of code pull that back as well now if i copy this line of code or cut that line of code and paste it in between these two quotation marks we have our alert message our bot command written out on a single line of code that will compile when we hit save there we have it just like magic so i'm going to do the same thing for our exit order i'm going to copy my exit command paste that underneath this command here put my backslashes in in front of every quotation mark like so and bear with me here there we go then i'm going to add new line characters i'll just copy this and paste it on the end of every line and then backspace all of my spaces like that and then cut this whole line of code paste it into the comment parameter of my strategy.exit function now if i save the script whenever a long signal is detected or a exit signal is detected the script is going to include our bot message that's this long string here as our strategy order comment and now if i come up here and i set an alert select my script make sure you've got your web hook inputted here and all we need to do here is change this to strategy dot order dot comment with two curly brackets on either side and there we have our bot command alert message so if i change this to three commas entry create that alert now repainting is not an issue because my code handles that we use the bar state dot is confirmed so the script even though it repaints it doesn't affect our trading signals that's something i cover in the mastery course as well if you're unfamiliar with repainting or you struggle with repainting but that's it we're done so these strategy scripts when you set alerts on them an alert will be triggered for both of these entry and exit functions so if an entry is detected an alert will trigger and if an exit is detected and a low will also trigger so we only need to set one alert for the script and as long as you set the alert to open ended or have a long expiry on it depending on what trading view plan you're on then every time an order is detected on your chart uh that command will be sent to the bot and your positions will be entered or exited accordingly so that's it i hope you found this lesson interesting i know it's quite an advanced one i hope i didn't lose you there i know this is a bit advanced compared to what we've covered in the past but i've had a lot of requests for this material and so i thought it was about time i created a lesson on it and now you can take this information and go and play with it with your own scripts and just really quickly before i wrap up the lesson if you're not using a strategy script you can still use indicator scripts to send your bot commands all you need to do is instead of this strategy.entry function if you're using this on an indicator script a regular study script you can just add the new alert function under wherever your entry signals or exit signals are detected you can just paste this command straight into this new alert function so you can set your message and your frequency so i'm going to set my frequency to alert dot frequency once per bar and i'm going to paste my command in there get rid of these extra quotation marks and now if i save the script that will also compile without any errors and if you were using this on an indicator script say i wanted to change this to study and you remove all of your strategy references so all of these strategy.position sizes and all of that you can use this alert function to do exactly the same thing on a study script so this is how you would trigger commands to your bot in your code instead of having to come up here and write the message out in your alert message text box and finally after you've played around with your paper trading account and you've got your bot working how you would like it to to flip it over to real money trading it's really simple all you do is click on this button up here and now the bot will execute your trades with your actual real binance trading balance pretty simple but make sure you've got everything set up and working properly on your paper trading account first to avoid any nasty problems so there we have it that brings me to the end of the lesson we have a profitable trading view strategy script entering and exiting trades through three commas third-party api using alert commands and we've had a 43 return using this script between the 1st of february and the 17th of february so 43 return over 17 days it's not bad although as i said at the start of the video i would have made more money just buying and holding this market at the moment but anyway that's it for this lesson i hope you found it interesting and helpful if you want to learn more about strategy scripts and pine script in general then head over to panscriptmastery.com where i have a bunch of lessons here courses there's a free course here on the absolute basics of pinescript there's my flagship mastery course with 85 lessons and dozens of hours of content covering pinescript in detail including strategy scripts i also have my indicators here every indicator i've ever created including my private ones all my profitable strategy scripts and then recently i released the pinescript mentorship program where i'm helping traders with their own scripts by creating lessons on subjects that they are struggling with so if you want to learn more about pinescript head over here otherwise i'll be back real soon with another free lesson thanks for watching thank you for your time and best of luck with your trading take care i'll see you in the next video what's wrong you don't want to be on youtube what's this thing oh it's scary huh it's bright and green my god man get out of here a little turkey you

Channel: The Art of Trading

Views: 73,773

Keywords: tradingview, pine script, tradingview indicators, forex algo, crypto algo, stock algo, trading algo, trading algorithm, how to create trading strategies, how to code your own trading scripts, trading scripts, forex scripts, crypto scripts, stock scripts, bitcoin scripts, trading signals, forex signals, crypto signals, stock signals, detect trading setups, pine script mastery, pine script mastery course, how to use tradingview, how to use pine script, scripting, ema

Id: -d_rFRd3o-0

Length: 32min 45sec (1965 seconds)

Published: Wed Feb 17 2021