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Frequently Asked Questions (FAQ)

This page answers common questions about Freqtrade usage, configuration, and troubleshooting.

Getting Started​

Q: What is Freqtrade?​

A: Freqtrade is a free and open-source cryptocurrency trading bot written in Python. It supports multiple exchanges, backtesting, strategy development, and various control interfaces.

Q: Is Freqtrade safe to use?​

A: Freqtrade is open-source software that you run on your own infrastructure. Safety depends on:

  • Your strategy quality
  • Risk management settings
  • API key security
  • Proper configuration

Always start with paper trading (dry run) and only risk money you can afford to lose.

Q: Which exchanges are supported?​

A: Freqtrade supports many exchanges through the CCXT library, including:

  • Binance
  • Bybit
  • Gate.io
  • Kraken
  • OKX
  • HTX (Huobi)
  • And many others

Check the exchanges documentation for specific details.

Q: Can I run Freqtrade on Windows?​

A: Yes, but we recommend using Docker or WSL (Windows Subsystem for Linux) for the best experience. Native Windows installation is possible but may require additional setup.

Configuration​

Q: How do I create a configuration file?​

A: Use the interactive configuration generator:

freqtrade new-config --config config.json

This will ask you questions and create a basic configuration file.

Q: What's the difference between dry run and live trading?​

A:

  • Dry Run: Simulates trading with fake money using real market data. No actual orders are placed.
  • Live Trading: Uses real money and places actual orders on the exchange.

Always test strategies in dry run mode first.

Q: How much money should I start with?​

A: Start small! Recommended approach:

  1. Begin with dry run (paper trading)
  2. Start live trading with $50-100
  3. Gradually increase as you gain confidence
  4. Never risk more than you can afford to lose

Q: How many trades should I run simultaneously?​

A: Start with 1-3 concurrent trades (max_open_trades). This allows you to:

  • Monitor performance closely
  • Limit risk exposure
  • Learn how the bot behaves

You can increase this number as you gain experience.

Strategy Development​

Q: Do I need to know Python to use Freqtrade?​

A: Basic Python knowledge is helpful but not strictly required. You can:

  • Use existing strategies from the community
  • Modify simple parameters in existing strategies
  • Learn Python gradually as you develop

However, creating custom strategies requires Python programming skills.

Q: Where can I find trading strategies?​

A:

Strategy Performance

Public strategies may not perform well in current market conditions. Always backtest and paper trade before using real money.

Q: How do I know if my strategy is good?​

A: Evaluate strategies using:

  1. Backtesting: Test on historical data
  2. Paper Trading: Test with live data but fake money
  3. Key Metrics: Win rate, profit factor, maximum drawdown
  4. Time Periods: Test across different market conditions

Q: Why don't backtest results match live trading?​

A: Common reasons include:

  • Order fill assumptions in backtesting
  • Network delays in live trading
  • Slippage and market impact
  • Different fee calculations
  • Look-ahead bias in strategy

This is normal - focus on the general trend rather than exact numbers.

Technical Issues​

Q: The bot isn't opening any trades. Why?​

A: Check these common issues:

  1. Strategy signals: Verify your strategy generates entry signals
  2. Available balance: Ensure sufficient funds for trading
  3. Pair whitelist: Check if pairs are correctly configured
  4. Exchange connectivity: Verify API keys and connection
  5. Market conditions: Strategy may not find suitable opportunities

Q: How do I check if my strategy is working?​

A:

# Test strategy signals
freqtrade backtesting --strategy MyStrategy --timerange 20231201-20231210

# Check recent signals
freqtrade plot-dataframe --strategy MyStrategy --pairs BTC/USDT

Q: Orders are not filling. What should I do?​

A:

  1. Check order type: Market orders fill faster than limit orders
  2. Price levels: Limit orders may be too far from market price
  3. Exchange status: Verify exchange is operating normally
  4. Pair liquidity: Some pairs have low trading volume
  5. Order timeout: Increase timeout settings if needed

Q: How do I search the bot logs?​

A: Use these commands to analyze logs:

# View recent logs
tail -f user_data/logs/freqtrade.log

# Search for entries
grep "ENTRY" user_data/logs/freqtrade.log

# Search for exits
grep "EXIT\|ROI\|STOP_LOSS" user_data/logs/freqtrade.log

# Search for errors
grep "ERROR\|CRITICAL" user_data/logs/freqtrade.log

# View logs from specific date
grep "2023-12-01" user_data/logs/freqtrade.log

Q: The bot crashed. How do I restart it?​

A:

  1. Check logs for error messages
  2. Fix the issue (configuration, strategy, etc.)
  3. Restart the bot: 
    freqtrade trade --config config.json
  4. Monitor closely after restart

Performance and Optimization​

Q: My strategy has low win rate. Is this bad?​

A: Not necessarily. A strategy can be profitable with:

  • Low win rate (30-40%) but large average wins
  • High win rate (70-80%) but small average wins

Focus on overall profitability, not just win rate.

Q: How often should I update my strategy?​

A:

  • Monitor performance weekly
  • Make small adjustments monthly
  • Major changes only when performance significantly degrades
  • Avoid over-optimization based on short-term results

Q: Can I run multiple strategies simultaneously?​

A: Yes, you can:

  1. Run multiple bots with different configurations
  2. Use different pairs for each strategy
  3. Separate databases to track performance independently
  4. Monitor total exposure across all strategies

Q: How do I optimize my strategy parameters?​

A: Use Freqtrade's hyperopt feature:

freqtrade hyperopt --strategy MyStrategy --hyperopt-loss SharpeHyperOptLoss --epochs 100

This systematically tests different parameter combinations.

Risk Management​

Q: What's a good stop loss percentage?​

A: Typical stop loss ranges:

  • Conservative: 3-5%
  • Moderate: 5-10%
  • Aggressive: 10-15%

Choose based on:

  • Your risk tolerance
  • Strategy characteristics
  • Market volatility
  • Pair behavior

Q: Should I use trailing stop loss?​

A: Trailing stops can help:

  • Lock in profits as price moves favorably
  • Reduce losses in trending markets

But they may also:

  • Exit too early in volatile markets
  • Reduce overall profits in some strategies

Test both approaches with your strategy.

Q: How do I handle a market crash?​

A: Emergency procedures:

  1. Stop new entries: Use /stopbuy command
  2. Monitor positions: Watch open trades closely
  3. Manual intervention: Consider force-selling if needed
  4. Adjust settings: Tighten stop losses temporarily
  5. Review strategy: Ensure it handles bear markets

Monitoring and Control​

Q: How do I monitor my bot remotely?​

A: Several options:

  1. Telegram: Mobile notifications and control
  2. FreqUI: Web interface accessible remotely
  3. REST API: Custom monitoring applications
  4. Log files: Remote server access

Q: What notifications should I enable?​

A: Recommended notifications:

  • Trade entries/exits: Monitor bot activity
  • Errors/warnings: Catch issues quickly
  • Daily summaries: Track overall performance
  • Stop loss triggers: Monitor risk events

Q: How do I backup my bot data?​

A: Backup these important files:

# Configuration files
cp config.json config.json.backup

# Trading database
cp user_data/tradesv3.sqlite user_data/tradesv3.sqlite.backup

# Custom strategies
cp -r user_data/strategies user_data/strategies.backup

# Log files (optional)
cp -r user_data/logs user_data/logs.backup

Advanced Topics​

Q: Can I use machine learning with Freqtrade?​

A: Yes! Freqtrade includes FreqAI for machine learning integration:

  • Automated feature engineering
  • Model training and prediction
  • Integration with popular ML libraries
  • Reinforcement learning support

See the FreqAI documentation for details.

Q: How do I contribute to Freqtrade?​

A: Ways to contribute:

  1. Report bugs: Submit issues on GitHub
  2. Suggest features: Propose improvements
  3. Submit code: Create pull requests
  4. Help others: Answer questions on Discord
  5. Documentation: Improve guides and examples

Q: Can I use Freqtrade for other assets besides crypto?​

A: Freqtrade is designed for cryptocurrency trading. While the CCXT library supports some traditional markets, Freqtrade's features are optimized for crypto markets.

Getting Help​

Q: Where can I get help?​

A: Support channels:

Q: How do I report a bug?​

A: When reporting bugs:

  1. Check existing issues first
  2. Provide detailed description of the problem
  3. Include configuration (remove sensitive data)
  4. Add log files showing the error
  5. Specify versions of Freqtrade and Python
  6. Steps to reproduce the issue

Q: Is there commercial support available?​

A: Freqtrade is open-source software maintained by volunteers. While there's no official commercial support, you can:

  • Hire freelance developers familiar with Freqtrade
  • Consult with community experts
  • Contribute to the project to influence development

A: Algorithmic trading is legal in most jurisdictions, but:

  • Check local regulations in your country
  • Comply with tax requirements for trading profits
  • Understand exchange terms of service
  • Consider professional advice for large-scale operations

Q: Do I need to pay taxes on bot trading profits?​

A: Tax requirements vary by jurisdiction:

  • Most countries require reporting trading profits
  • Keep detailed records of all trades
  • Consult tax professionals for specific advice
  • Use Freqtrade's export features to generate reports

Q: What are the risks of using trading bots?​

A: Key risks include:

  • Financial losses: Strategies may lose money
  • Technical failures: Software bugs or connectivity issues
  • Market risks: Extreme market conditions
  • Security risks: API key compromise
  • Regulatory risks: Changing regulations

Always understand and accept these risks before trading.

Troubleshooting Quick Reference​

ProblemQuick Solution
Bot won't startCheck freqtrade show-config
No trades openingVerify strategy signals with backtesting
Orders not fillingCheck order types and timeouts
High lossesReview stop loss and risk management
API errorsVerify exchange API keys and permissions
Strategy errorsCheck Python syntax and imports
Database issuesBackup and recreate database
Memory issuesEnable reduce_df_footprint

For more specific issues, check the detailed documentation sections or ask on Discord.

Last updated on by huojiabin