The gist

Freqtrade is a free and open-source cryptocurrency trading bot written in Python. It's designed for developers and technical traders looking to automate their trading strategies across major exchanges. The tool solves the problem of manual trading by providing a robust framework for backtesting, optimizing, and deploying algorithmic trading logic, complete with management via a web UI or Telegram.

What it does

Automate crypto trading strategies on major spot and futures exchanges.
Backtest trading strategies against historical market data.
Optimize strategy parameters using machine learning and hyperoptimization.
Manage and monitor the bot remotely via a built-in web UI or Telegram.
Run in a paper trading 'dry-run' mode to test strategies without real funds.
Build adaptive prediction models that self-train to market conditions using FreqAI.

How it works

Users install the Python application locally via Docker or a native setup. They define a trading strategy in a Python file, provide exchange API keys, and configure bot parameters in a config file. The tool is run from the command line to download data, backtest strategies, or start live trading. As a free, open-source, self-hosted application, users maintain full control over their data and infrastructure.

Best for

Freqtrade is ideal for developers and quantitative traders with Python knowledge who want to build, rigorously test, and run their own automated cryptocurrency trading strategies.

Watch out for

The software is for educational purposes and comes with significant financial risk. The project strongly recommends that users have coding and Python knowledge to use it effectively and safely.