Introducing Freqtrade – an advanced open-source cryptocurrency trading robot

What is Freqtrade?

Freqtrade It is an automated cryptocurrency trading platform that is in the language Python It is written and designed to run on personal systems or cloud servers.
This robot is Completely open source In GitHub It has been published and has an active user community.

Freqtrade allows users to:

• Write your own trading strategies or use ready-made examples.

• Check transactions in simulation mode (Backtesting).

• Execute in live mode (Live Trading) on reputable exchanges.

• And even from Machine Learning Use to improve strategies.

How Freqtrade works

Freqtrade via API Key It connects to cryptocurrency exchanges (such as Binance, Bybit, KuCoin, OKX, etc.) and executes trades based on the determined strategy.

The overall operation of the robot is divided into four stages:

1. Getting Market Data:
   Freqtrade collects price information, volume, and other market indicators.

2. Signal Analysis (Signal Generation):
   It detects buying or selling conditions using indicators such as RSI, EMA, Bollinger Bands, and MACD.

3. Position Management (Trade Management):
   It controls positions based on parameters such as Take Profit and Stop Loss.

4. Performance logging:
   Records all activities in log files to be used later for performance analysis.

How to install and launch Freqtrade

Freqtrade for systems Linux, macOS and Windows It can be installed, but it is recommended to VPS or cloud server Use to run the robot continuously.

1. Install the prerequisites

First of all, you need to install Python and Git:

sudo apt update && sudo apt install git python3 python3-venv python3-pip -y

git clone https://github.com/freqtrade/freqtrade.git
cd freqtrade

python3 -m venv .env
source .env/bin/activate
pip install -r requirements.txt

freqtrade new-config

class SimpleStrategy(IStrategy):
timeframe = '5m'

def populate_buy_trend(self, dataframe, metadata):
dataframe.loc[
(dataframe['rsi'] < 30), 'buy'
] = 1
return dataframe

def populate_sell_trend(self, dataframe, metadata):
dataframe.loc[
(dataframe['rsi'] > 70), 'sell'
] = 1
return dataframe

freqtrade backtesting --config config.json --strategy SimpleStrategy

freqtrade trade --config config.json --strategy SimpleStrategy

freqtrade trade --dry-run