freqtrade-bot

USE FOR:

• "crypto trading bot Python"
• "freqtrade strategy development"
• "backtesting crypto strategy"
• "hyperopt parameter optimization"
• "FreqAI machine learning trading"
• "Binance/Bybit/Kraken automated bot"
• "Telegram trading bot"

tags: [freqtrade, crypto, trading-bot, backtesting, hyperopt, FreqAI, Binance, Bybit, Python, Telegram, ML] kind: framework category: crypto-defi-trading

What Is Freqtrade?

Free open-source Python crypto trading bot with full backtesting and ML optimization.

• Repo: https://github.com/freqtrade/freqtrade
• Python: 3.11+
• Requirements: 2GB RAM, 1GB disk, 2vCPU
• Control: Telegram · WebUI · CLI

Supported Exchanges

Installation

# Docker (recommended)
docker compose up -d

# pip install
pip install freqtrade
freqtrade install-ui   # optional WebUI

# From source
git clone https://github.com/freqtrade/freqtrade
cd freqtrade
./setup.sh -i

CLI Commands

# Create new strategy template
freqtrade new-strategy --strategy MyStrategy

# Run backtesting
freqtrade backtesting --strategy MyStrategy --timerange 20240101-20241231

# Hyperopt (ML parameter search)
freqtrade hyperopt --strategy MyStrategy --hyperopt-loss SharpeHyperOptLoss --epochs 500

# Paper trading (dry run)
freqtrade trade --strategy MyStrategy --dry-run

# Live trading
freqtrade trade --strategy MyStrategy

# Plot strategy signals
freqtrade plot-dataframe --strategy MyStrategy

Strategy Structure

from freqtrade.strategy import IStrategy, DecimalParameter, IntParameter
import pandas as pd
from pandas import DataFrame
import talib.abstract as ta

class MyStrategy(IStrategy):
    # Required settings
    minimal_roi = {"0": 0.10, "30": 0.05, "60": 0.01}
    stoploss = -0.05
    timeframe = "1h"

    # Hyperopt parameters (searchable)
    rsi_period = IntParameter(10, 30, default=14, space="buy")
    rsi_buy    = IntParameter(20, 40, default=30, space="buy")
    rsi_sell   = IntParameter(60, 80, default=70, space="sell")

    def populate_indicators(self, dataframe: DataFrame, metadata: dict) -> DataFrame:
        dataframe["rsi"]  = ta.RSI(dataframe, timeperiod=self.rsi_period.value)
        dataframe["macd"], dataframe["macdsignal"], _ = ta.MACD(dataframe)
        dataframe["ema20"] = ta.EMA(dataframe, timeperiod=20)
        return dataframe

    def populate_entry_trend(self, dataframe: DataFrame, metadata: dict) -> DataFrame:
        dataframe.loc[
            (dataframe["rsi"] < self.rsi_buy.value) &
            (dataframe["close"] > dataframe["ema20"]),
            "enter_long"
        ] = 1
        return dataframe

    def populate_exit_trend(self, dataframe: DataFrame, metadata: dict) -> DataFrame:
        dataframe.loc[
            dataframe["rsi"] > self.rsi_sell.value,
            "exit_long"
        ] = 1
        return dataframe

Hyperopt (ML Parameter Search)

# Optimize entry/exit parameters
freqtrade hyperopt \
  --strategy MyStrategy \
  --hyperopt-loss SharpeHyperOptLoss \
  --spaces buy sell \
  --epochs 300

# Loss functions available:
# SharpeHyperOptLoss    → maximize Sharpe ratio
# SortinoHyperOptLoss   → maximize Sortino ratio
# CalmarHyperOptLoss    → maximize Calmar ratio
# MaxDrawDownHyperOptLoss → minimize drawdown

FreqAI (Adaptive ML Strategies)

# config.json — enable FreqAI
{
  "freqai": {
    "enabled": true,
    "purge_old_models": 2,
    "train_period_days": 30,
    "backtest_period_days": 7,
    "feature_parameters": {
      "include_timeframes": ["5m", "15m", "1h"],
      "include_corr_pairlist": ["BTC/USDT", "ETH/USDT"],
      "label_period_candles": 24,
      "include_shifted_candles": 2
    },
    "identifier": "my_model",
    "model_training_parameters": {
      "n_estimators": 200,
      "learning_rate": 0.05
    }
  }
}

# In strategy: use FreqAI predictions
class FreqAIStrategy(IStrategy):
    def populate_indicators(self, df, metadata):
        df = self.freqai.start(df, metadata, self)  # runs ML model
        return df

    def populate_entry_trend(self, df, metadata):
        df.loc[df["&-s_close"] > 0.02, "enter_long"] = 1  # predict +2% close
        return df

Backtesting Results

# Key metrics in backtesting output:
# Total profit % · Win rate · Avg profit per trade
# Max drawdown · Sharpe ratio · Sortino ratio
# Calmar ratio · Profit factor · Avg duration

freqtrade backtesting --strategy MyStrategy \
  --timerange 20240101-20241231 \
  --export trades \
  --export-filename results.json

Telegram Commands

/start      → start trading
/stop       → stop trading
/status     → show open trades
/profit     → show P&L summary
/balance    → show portfolio
/performance → strategy performance
/forceenter BTC/USDT → force buy
/forceexit 1 → force close trade #1

KNOWLEDGE INJECTION: pysystemtrade (Rob Carver)

Source: https://github.com/pst-group/pysystemtrade

Routed to: trading.md - risk-and-portfolio / backtesting-sim

Date: 2026-03-17

SKILL: pysystemtrade

name: pysystemtrade description: > pysystemtrade - Rob Carvers open-source futures trading system implementing Systematic Trading book framework. Backtesting + live trading via Interactive Brokers (IB insync). Production system traded 20h/day by the author. Risk management, position sizing, futures data management, Python 3. USE FOR:

• systematic futures trading Python
• Rob Carver pysystemtrade
• backtesting futures with position sizing
• live futures trading Interactive Brokers
• Systematic Trading book implementation

tags: [pysystemtrade, futures, systematic-trading, Rob-Carver, IB, backtesting, position-sizing, risk] kind: framework category: backtesting-sim

What Is pysystemtrade?

Rob Carvers open-source implementation of the Systematic Trading framework.

• Repo: https://github.com/pst-group/pysystemtrade
• Live trading: Interactive Brokers (IB insync)
• Author trades it live 20h/day - production-grade
• Books: Systematic Trading, Leveraged Trader, Advanced Futures Trading

Installation

git clone https://github.com/pst-group/pysystemtrade cd pysystemtrade pip install -r requirements.txt python setup.py install

Core Concepts (Rob Carver Framework)

Instrument selection - futures with sufficient liquidity and diversification Rule signals - trend-following, carry, mean-reversion signals Forecast scaling - normalize signals to +/-20 range Forecast combination - blend multiple signals with weights Position sizing - use volatility targeting (% annual risk per instrument) Portfolio construction - diversification multiplier across instruments

Volatility Targeting (Key Concept)

target_vol = 0.25 # 25% annual portfolio volatility instrument_vol = price daily_vol sqrt(256) # annualized notional_exposure = (capital * target_vol) / instrument_vol contracts = notional_exposure / point_value

Result: size positions by risk, not by price

Trend Following Signal

import pysystemtrade as pst from sysquant.estimators.ewm import ewmac

EWMAC crossover (Exponentially Weighted Moving Average Crossover)

raw_signal = ewmac(price, Lfast=16, Lslow=64) scaled_forecast = raw_signal.clip(-20, 20) * forecast_scalar

Combine multiple EWMAC speeds

forecasts = { ewmac_2_8: weight_0.15, ewmac_4_16: weight_0.15, ewmac_8_32: weight_0.15, ewmac_16_64: weight_0.30, ewmac_32_128: weight_0.25 } combined_forecast = sum(f * w for f, w in forecasts.items())

Risk Management Rules

1. Never risk more than 2% of capital per instrument per year (volatility target)
2. Diversification multiplier caps total portfolio leverage
3. IDM (instrument diversification multiplier) scales up when correlation is low
4. Position limits: never exceed 1/3 of daily volume
5. Buffering: avoid trading if new position within N% of current

Live Trading (IB Integration)

from sysbrokers.IB.ib_connection import ibConnection from sysbrokers.IB.ib_futures_contracts_data import ibFuturesContractData

connection = ibConnection()

System runs daily: checks positions, generates orders, submits to IB

KNOWLEDGE INJECTION: FinRL-Trading v2.0

Source: https://github.com/AI4Finance-Foundation/FinRL-Trading

Routed to: trading.md - ml-trading / quant-ml-trading

Date: 2026-03-17

SKILL: finrl-trading

name: finrl-trading description: > FinRL-Trading v2.0 - modular quant trading platform with ML strategies, professional backtesting, live trading via Alpaca. Strategies: Equal Weight, Market Cap Weighted, Random Forest stock selection, Sector Neutral ML. Data: Yahoo Finance, FMP, WRDS. Python 3.11+. USE FOR:

• FinRL reinforcement learning trading
• ML stock selection strategy
• Alpaca paper/live trading Python
• modular quant trading platform
• Random Forest stock selection

tags: [FinRL, RL, ML, trading, Alpaca, Random-Forest, backtesting, quant, Python] kind: framework category: ml-trading

What Is FinRL-Trading?

Modular quant trading platform by AI4Finance Foundation.

• Repo: https://github.com/AI4Finance-Foundation/FinRL-Trading
• Version: v2.0
• Broker: Alpaca (paper + live)
• Python: 3.11+

Implemented Strategies

Equal Weight - buy all S&P500 stocks equally weighted Market Cap Weighted - weight by market capitalization Random Forest ML - ML-based stock selection (scikit-learn) Sector Neutral ML - ML selection with sector exposure control Deep RL (roadmap) - PPO/DQN agents (planned)

Installation

git clone https://github.com/AI4Finance-Foundation/FinRL-Trading pip install -r requirements.txt cp .env.example .env

Add Alpaca keys + optional FMP key

Quick Start

jupyter notebook examples/FinRL_Full_Workflow.ipynb

Data Sources

Yahoo Finance - free default (yfinance) Financial Modeling Prep (FMP) - paid, higher quality WRDS - academic dataset (requires credentials)

ML Stock Selection Pattern

import pandas as pd from sklearn.ensemble import RandomForestClassifier from sklearn.model_selection import TimeSeriesSplit

Feature engineering

features = [return_1m, return_3m, return_6m, volume_ratio, pe_ratio, pb_ratio]

Train RF on historical data

model = RandomForestClassifier(n_estimators=200, random_state=42) tscv = TimeSeriesSplit(n_splits=5)

for train_idx, val_idx in tscv.split(X): model.fit(X[train_idx], y[train_idx])

Score stocks and select top N

scores = model.predict_proba(X_current)[:, 1] top_50 = pd.Series(scores, index=tickers).nlargest(50).index

Alpaca Live Trading

import alpaca_trade_api as tradeapi

api = tradeapi.REST(ALPACA_KEY, ALPACA_SECRET, base_url="https://paper-api.alpaca.markets")

for ticker, weight in portfolio.items(): equity = float(api.get_account().equity) target_value = equity * weight current_price = api.get_last_trade(ticker).price qty = int(target_value / current_price) api.submit_order(symbol=ticker, qty=qty, side="buy", type="market", time_in_force="day")

KNOWLEDGE INJECTION: Algorithmic Trading Python (Nick McCullum / FreeCodeCamp)

Source: https://github.com/nickmccullum/algorithmic-trading-python

Routed to: trading.md - backtesting-sim / ml-trading

Date: 2026-03-17

Algorithmic Trading Python - Strategy Reference

Three production-quality strategies using IEX Cloud API:

Strategy 1: Equal-Weight S&P 500 Index Fund

Allocate equal capital to all 500 S&P 500 components.

import numpy as np import pandas as pd import requests import xlsxwriter import math

Get S&P 500 tickers

stocks = pd.read_csv("sp_500_stocks.csv")

For each stock: fetch price + market cap via IEX Cloud

IEX_CLOUD_API_TOKEN = "YOUR_TOKEN" def chunks(lst, n): for i in range(0, len(lst), n): yield lst[i:i+n]

Batch API calls (100 stocks per call)

symbol_groups = list(chunks(stocks["Ticker"], 100)) for group in symbol_groups: batch_url = f"https://sandbox.iexapis.com/stable/stock/market/batch/?types=quote&symbols={','.join(group)}&token={IEX_CLOUD_API_TOKEN}" data = requests.get(batch_url).json()

Calculate position sizes

portfolio_size = 10_000_000 # 0M position_size = portfolio_size / len(stocks) num_shares = math.floor(position_size / price)

Strategy 2: Quantitative Momentum Strategy

Select top 50 momentum stocks from S&P 500.

Metrics used: 1-month return (25% weight) 3-month return (25% weight) 6-month return (25% weight) 12-month return (25% weight)

Composite momentum score (HQM = High Quality Momentum)

hqm_columns = [ "One-Year Price Return", "Six-Month Price Return", "Three-Month Price Return", "One-Month Price Return" ]

for row in hqm_dataframe.index: momentum_percentiles = [] for time_period in hqm_columns: hqm_dataframe.loc[row, f"{time_period} Percentile"] = stats.percentileofscore( hqm_dataframe[time_period], hqm_dataframe.loc[row, time_period] ) / 100

hqm_dataframe.loc[row, "HQM Score"] = mean(momentum_percentiles)

Select top 50 by HQM Score

hqm_dataframe.sort_values("HQM Score", ascending=False, inplace=True) hqm_dataframe = hqm_dataframe[:50]

Strategy 3: Quantitative Value Strategy

Select top 50 value stocks using composite value score (RV Score).

Metrics used (each 20% weight): Price-to-Earnings (P/E) ratio Price-to-Book (P/B) ratio Price-to-Sales (P/S) ratio Enterprise Value / EBITDA Enterprise Value / Gross Profit

RV = Robust Value Score (percentile average across all 5 metrics)

rv_columns = ["Price-to-Earnings Ratio", "Price-to-Book Ratio", "Price-to-Sales Ratio", "EV/EBITDA", "EV/GP"]

for row in rv_dataframe.index: value_percentiles = [] for metric in rv_columns: rv_dataframe.loc[row, f"{metric} Percentile"] = stats.percentileofscore( rv_dataframe[metric], rv_dataframe.loc[row, metric] ) / 100 value_percentiles.append(rv_dataframe.loc[row, f"{metric} Percentile"]) rv_dataframe.loc[row, "RV Score"] = mean(value_percentiles)

rv_dataframe.sort_values("RV Score", ascending=False, inplace=True) rv_dataframe = rv_dataframe[:50]

Key Libraries

requests - API calls to IEX Cloud pandas - data manipulation numpy - math operations scipy.stats.percentileofscore - percentile ranking xlsxwriter - export results to Excel with formatting math.floor - position sizing calculations

KNOWLEDGE INJECTION: Awesome Crypto Trading Bots (Reference List)

Source: https://github.com/botcrypto-io/awesome-crypto-trading-bots

Routed to: trading.md - crypto-defi-trading

Date: 2026-03-18

Crypto Trading Bot Ecosystem Reference

Open-Source Trading Bots

Technical Analysis Libraries

Market Data & Exchange APIs

Charting / Visualization

Community Resources

• Freqtrade Discord: discord.gg/freqtrade
• Hummingbot Discord: discord.hummingbot.io
• Awesome list: github.com/botcrypto-io/awesome-crypto-trading-bots