3Commas practical guides: how to always profit from long and short positions

3Сommas Blog
3 min readSep 25, 2020

In this article “3Commas practical guides,” we will talk about how you can profit from trading long and short positions using 3Commas.io platform, regardless of the direction in which the price moves.

Strap and Strip Options Bot strategies

Wouldn’t it be nice if each of our trades was profitable? Unfortunately, the situation may not always go according to our plan, and we have to suffer losses every time our trade is knocked down by a stop loss. The Strap and Strip Options Bot strategies allow us to hedge our trade so that even if the price goes in the unexpected direction, we will make a profit, although not as much as if the price went in the direction we originally thought. Strap and Strip Options strategies are analogous to long and short strategies, respectively; think of it like trading futures with an automatic position change at a given level. This strategy implies buying several Call options (long) if you are sure that the price will go up, and one Put option (short), which will act as a hedge if the price goes against you in the opposite direction. The new 3Commas.io Options Bot will help you to easily set up a Strap or Strip trade in a few clicks. You don’t have to deal with different types of options and waste precious time; the bot will do everything for you, taking into account your preferences and risk management.

Setting up

To start working with Options Bot, you need to connect your 3commas account to the Deribit exchange (Deribit is renowned as the #1 exchange for trading Options on the crypto market). Next, set up a trade in the Options Bot section of the side menu. You can always try the functionality first with a Paper Trading account:

For example, we believe that the price of Bitcoin is likely to drop the next day. We select a strategy from the list and adjust the position size, timing, maximum risks, and desired profit. With a Strip strategy, the bot will buy a Call option with a central strike and Put options in greater amounts with either a similar or a different strike. If you are not yet familiar with the concept of options, please read our detailed article on options before using this strategy. This strategy will help you aggressively earn when the price drops and hedge ourselves if the price goes up. Thus, if the price drops as we planned, we will earn double (Nx) profits, but we will also profit if the price goes up, (not as fruitfully though). In our case, we have set the risk profit ratio at 28.57.

Once the trade is confirmed, it will then go through the automatic mode, and you will only have to periodically check your analysis being fulfilled. Thanks to the 3commas.io interface, it is convenient to create, track and manage your positions.

Good luck, everyone! See you in the next 3Сommas Practical Guides!

To learn more about the Options Bot, please follow this link.

Disclaimer: The contents of this article are not intended to be financial advice and should not be treated as such. 3commas and its authors do not take any responsibility for your profits or losses after you read this article. The price prediction contained herein is based on data that was gathered from a variety of sources. This should not be used as a parameter for investing. The user must do their own independent research to make informed decisions regarding their crypto investments.