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

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. 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.