# Freqtrade — Open-Source Crypto Trading Bot

> A free and open-source crypto trading bot written in Python that supports backtesting, strategy optimization, and live trading across major exchanges.

## Install

Save in your project root:

# Freqtrade — Open-Source Crypto Trading Bot

## Quick Use
```bash
pip install freqtrade
freqtrade create-userdir --userdir user_data
freqtrade new-config
freqtrade trade --config user_data/config.json --strategy SampleStrategy
```

## Introduction
Freqtrade is a Python-based cryptocurrency trading bot that lets you design, backtest, and deploy automated trading strategies. It connects to major exchanges via CCXT and provides a web UI for monitoring trades in real time.

## What Freqtrade Does
- Executes automated trading strategies on spot and futures markets across supported exchanges
- Backtests strategies against historical data with detailed performance reports
- Optimizes strategy parameters through hyperparameter tuning with Hyperopt
- Provides a web-based dashboard (FreqUI) for monitoring open trades and profit/loss
- Supports Telegram and webhook notifications for trade events

## Architecture Overview
Freqtrade runs as a single Python process with an event loop that polls exchanges at configurable intervals. Strategies are defined as Python classes with indicator calculation and entry/exit logic. The bot uses SQLAlchemy with SQLite for trade persistence and exposes a REST API consumed by the FreqUI frontend.

## Self-Hosting & Configuration
- Install via pip or Docker with pre-built images for quick setup
- Configure exchange credentials and trading pairs in a JSON config file
- Define custom strategies as Python files in the user data directory
- Run backtesting and hyperopt locally before deploying live
- Deploy on a VPS or Raspberry Pi for 24/7 unattended operation

## Key Features
- Strategy development in pure Python with full access to technical indicators via TA-Lib
- Comprehensive backtesting engine with configurable fees, slippage, and timeframes
- Built-in edge positioning and risk management with stop-loss and trailing stop support
- Dry-run mode for paper trading without risking real funds
- Active community with hundreds of shared strategy examples

## Comparison with Similar Tools
- **CCXT** — A library for exchange connectivity; Freqtrade is a complete trading bot built on top of CCXT
- **Jesse** — Similar Python bot; Freqtrade has a larger community and more exchange support
- **Gekko** — Archived Node.js bot; Freqtrade is actively maintained with modern features
- **3Commas** — Commercial SaaS; Freqtrade is self-hosted and fully open source

## FAQ
**Q: Which exchanges does Freqtrade support?**
A: Any exchange supported by CCXT, including Binance, Kraken, OKX, Bybit, and many more.

**Q: Can I use Freqtrade for futures trading?**
A: Yes, Freqtrade supports futures and margin trading on supported exchanges.

**Q: Is Python knowledge required?**
A: Basic Python is needed to write strategies, but sample strategies and documentation make it accessible to beginners.

**Q: Does Freqtrade cost anything?**
A: No, it is free and open source under the GPL-3.0 license.

## Sources
- https://github.com/freqtrade/freqtrade
- https://www.freqtrade.io

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Source: https://tokrepo.com/en/workflows/asset-ab180c52
Author: AI Open Source