Binance Futures Multi-Assets Mode Strategy – (Yes, you can Hedge with 3Commas!)

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Welcome to the Trading With A Bot channel. Note that asides of my "Tiny DOGE" bot, I have 
two new bots running – a Long and a Short BTC bot. Today I'd like to continue using 3Commas 
automation platform to show you how to hedge   your positions. There is a "Hedge Mode" feature 
available on Binance Futures, but 3Commas does   not support it yet. So instead, I will show you 
how to hedge BTC using different quote currencies   and we will also explore a new feature available 
from Binance Futures called "Multi-Assets Mode".   By default you have the "Single Asset Mode" 
enabled, so let's go back in time and explore   first how my BTC hedged position would work under 
the Single-Asset Mode. I go to create a new DCA   bot in 3Commas and I search for BTC.

Uniquely, 
I see that BTC can be traded with BUSD and USDT   quote currencies. Both are pegged to the United 
States dollar with a one-to-one equivalence,   and thus I can create two independent positions, 
one Long position and one Short position,   without having the Hedge Mode enabled. And this 
is the first main point of the strategy that I   am covering today. The price of the BTC/BUSD pair 
will be almost an exact copy of the BTC/USDT pair,   and thus having one DCA bot running a Short grid 
and another running a Long grid will emulate the   hedge setup.

Before I am able to save and start 
my BTC/BUSD bot, however, I realize that I do not   have any BUSD funds on my Futures account and so 
I will go now into my Futures wallet and fix this. I'll press the "Convert" button to 
exchange some of my USDT into BUSD,   but since I am doing it for the first time now 
I am a little confused with this interface.   I specify the amount I want to convert, press 
"Confirm" and nothing appears to happen.   And so I repeat the whole thing 
and press "Confirm" again. And again. Here I decided that I should reload 
the page and I am doing that. In fact, I see   that there's an "Assets" tab which I haven't paid 
attention to before.

It makes perfect sense – now   as I have multiple assets in my Futures account, 
I should see them all under the "Assets" tab.   So the conversion went fine and I have both 
BUSD and USDT currencies available. I can start   my second BTC bot. Please ignore the 3Commas DCA 
related settings that I have for these two bots.   I will come back and fine-tune the 
settings in the second part of this video. To make this experiment visually appealing, 
I had created a very dense grid for both Long   and Short bots and I had made them an exact 
mirror of each other. My BTCBUSD pair is Long   and my BTCUSDT pair is Short. When BTC price 
increases, my Long bot will be making a profit   and if the opposite will happen and the price will 
be falling down, it is my Short bot that will be   profitable.

The grids that I have created have 
different density and different size. This is done   with the help of 3Commas automation platform and 
if you are not at all familiar with 3Commas or DCA   bots, please check out my previous videos where 
I introduce these concepts with my famous "Tiny   DOGE" bot example. You can also create this setup 
with a manual trading. You do not have to use   automation to set up a Long and a Short position 
with bitcoin by using BUSD and USDT assets.   Note that the assets are appearing 
here, in the left-bottom corner.   Currently I am looking at my BUSD balance.

Based 
on my BUSD balance, I can also see Margin that my   position had used. And I can see my Margin Ratio. 
The Margin Ratios are different for BUSD and   USDT positions because I had a slightly different 
balance for each. I had around 30 BUSD and around   24 USDT. Note how the "Assets" screen had switched 
now to USDT as I selected the BTC/USDT position. I had recorded this setup while I had the "Single 
Asset Mode" enabled. You see, while I have hedged   my BTC position with a Long and a Short, I have 
two separate wallets – one in BUSD and another in   USDT, and this does not help to reduce my risk 
of liquidation. The profit that I make on my   Long position is not added to hedge against the 
possible loss I am making on my Short position.   I will now cover the second aspect point of 
the strategy: the "Multi-Asset Mode".

You can   enable this mode by going into "Preferences" 
and then into the "Asset Mode" menu, but first   you need to close all of your positions, and so 
I stopped the two bots that you had just seen.   Also the "Multi-Asset Mode" does not work 
with the Isolated Margin type, and you may   need to make some exceptions for some coins.

pexels photo 6802049

Once 
enabled, you'll see the "Multi-Assets" section on   your bottom-right pane. Now, the assets you have 
under your Futures account will be combined into   one Equity account and all your open positions 
will share this combined equity balance. Binance   Futures had introduced this enhancement just 
recently and it is an excellent feature, allowing   you to reduce your risk of liquidation when 
running a hedge setup. You can check out the guide   provided by Binance, I will leave a direct link 
to the guide in the description of this video. I have only two assets: USDT and BUSD, but 
their value combined creates my Futures   "Account Equity". I'll go back to 3Commas 
and restart my Short and my Long bots. Each of the bots will still use their individual 
quote currency wallets to perform "buy" and "sell"   operations, but the wallet's combined value is 
now shared among the positions for collateral.

This significantly reduces your liquidation risks 
and is a great complementary feature of your hedge   setup. Note how the Margin Ratio is the same 
for these two positions now. I used BTC base   currency for this hedge setup, but you can extend 
this strategy for some other contracts as well. The key part of this strategy is to find the base 
currency that is available in both BUSD and in   USDT, thus allowing you to set up both a Short 
and a Long positions. By searching for BUSD you   can see a few other contracts, such as Ethereum or 
BNB that could also be used for this hedged setup.   BUSD is a tightly regulated one-to-one USD-backed 
crypto Stable Coin, and I expect that more and   more contracts will be available in both BUSD 
and USDT pair combinations.

Having these two   options for your quote currency and the ability 
to share your Maintenance Balance as a single   Account Equity provide a significant edge for both 
profit opportunities and risk management. With   both the Long and the Short positions in place, 
you make money no matter where the market goes. And the profit for one of the positions is helping 
with the Maintenance Balance for both of them. The   challenge I see here is still to find the right 
configuration for your DCA bots for both Long   and a Short position. Or if you trade manually, to 
understand the fundamentals as well as technical   indicators that are required for you to place 
and size your Long and your Short positions.

What you see on the screen now is the fast forward 
of the work I do behind the scenes to back-test   and size my DCA bots. Each coin will 
have a slightly different configuration,   and now we're adding into the 
complexity both Long and a Short. Setup   they should not be mirrored, they should 
be tuned based on the data available. In the previous 4 videos that I had posted, I go 
into details of how to back-test the 3Commas DCA   bots and how to budget them to understand the 
wallet requirements and liquidation risks. My   "Tiny Long DOGE" bot had proven to be successful 
and had now run for over 45 days without   interruption, producing circa 50% of return per 
month. Lately, I had been exploring various hedge   and diversification setups. The configuration 
I presented in this video, allowing a Long   and a Short position on the same base-currency, 
with the combination of the "Multi-Assets Mode" is   an important addition to my strategies portfolio. 
What remains here for today is for me to provide   you with the exact configuration of a Long 
and a Short bot for the "Hedged BTC" setup.   I think the configuration I've done today 
is nearly final, and I am leaving the links   for both Long and a Short bot in the description 
below.

You can look at their performance and you   can copy them, if you wish. I also started keeping 
"bot journals" and while I share most of my work   publicly, there are some bot configurations that 
I design especially for my Patrons. I would very   much appreciate your support and your backing on 
my Patreon. My goal is to release at least one   bot configuration per month, thoroughly tested 
and documented, and a regular YouTube video.

The link to my Patreon is 
right below, so check it out..

As found on YouTube

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