Best crypto trading bot setup (open source, dry-run first)
Updated · What changed: First published with Freqtrade as the pick.
By The AI Loadout editors · How we pick
For most people who want a crypto trading bot, start with Freqtrade. It is free and open source (GPL-3.0), runs on Windows, macOS and Linux, and has backtesting, a dry-run mode that trades without real money, machine learning optimization with FreqAI, a web UI and Telegram control. Use Claude Code to write and review strategies, and keep the bot in dry-run until you understand how it behaves. Pick Hummingbot instead for market making or arbitrage across many exchanges. This page is educational only and is not financial advice.
| Slot | Pick |
|---|---|
| Tool | Claude Code |
| Model | Claude Opus 5.5 (frontier) or Qwen 3.5 27B (local) |
| Skill | Freqtrade backtesting and dry-run |
| Persona | The Crypto Strategy Reviewer |
| Bot | Freqtrade |
Free, no signup needed.
We check these picks every day. When one changes, it is in the next morning's email.
Free starter kit on signup: 2 Claude Code skills and 1 agent persona from our paid packs. By subscribing you agree to get The AI Loadout Daily, one email each morning. No spam, we never sell your email, and every email has a one-click unsubscribe link.
The loadout (why each pick)
Tool: Claude Code
Freqtrade strategies are Python files. A coding agent can write one, explain it line by line, write the backtest command and spot look-ahead bias. Keep exchange keys out of the agent's reach.
Model: Claude Opus 5.5 (frontier) or Qwen 3.5 27B (local)
Opus 5.5 at max effort topped Terminal-Bench 4.0 per GenAI Brief in mid October 2026, which matters for writing and debugging strategy code. For a private setup, Qwen 3.5 27B or Gemma 4 26B in Ollama or LM Studio runs on a 24 to 32 GB machine.
Agent skills
- Freqtrade backtesting and dry-run: Backtest on historical data, then dry-run live for weeks. Never skip the dry-run step.
- Trade-only exchange keys: If you ever go live, give API keys trade-only permission with withdrawals off and cap position sizes, as TradingAgentStack advises.
Bot persona: The Crypto Strategy Reviewer
Most bot losses start with an untested or overfit strategy. This persona reviews code before it runs.
Bot: Freqtrade
Freqtrade is the trading engine: it backtests, runs dry-run, and can manage the bot from Telegram or its web UI, per its README. TradingAgentStack lists it as the most popular open-source crypto strategy bot, at about 55k GitHub stars. Browse all bots.
Comparison table
| Option | Best for | Model(s) | Price | Free plan | Last checked |
|---|---|---|---|---|---|
| Freqtrade | Strategy bots with backtesting and dry-run | FreqAI (ML) | Free (GPL-3.0) | Yes | |
| Hummingbot | Market making, arbitrage, DEX | Condor AI harness | Free (Apache 2.0) | Yes | |
| Alpaca crypto (paper) | Crypto plus stocks from one MCP server | Any MCP client | Paper account free | Yes |
Prices come from the linked vendor or source page and can change. Check the vendor before you buy.
Copy this setup
Paste this persona into your tool's custom instructions or project instructions:
You review Freqtrade strategies. For any strategy I share: explain the entry and exit rules in plain English, flag look-ahead bias, data leakage and overfitting, check that stoploss and position size are set, and write the backtest and dry-run commands. Assume dry-run only. Never suggest leverage, never promise returns, and say clearly when a backtest sample is too small to mean anything. This is not financial advice.- Install Freqtrade with Docker following the official docs.
- Paste the Crypto Strategy Reviewer persona into Claude Code and have it explain a sample strategy.
- Download historical data and backtest the strategy over several market periods.
- Run it in dry-run mode and connect Telegram so you can watch it.
- Change one thing at a time and backtest again. Stay in dry-run until you have weeks of results you understand.
Alternatives by situation
- Market making: Hummingbot is built for market making and arbitrage with many CEX and DEX connectors, and its Condor harness runs agentic strategies.
- Stocks too: Use the AI trading bot setup with the Alpaca MCP server, which covers stocks, options and crypto on one paper account.
- Bots promising fixed returns: Skip them. TradingAgentStack warns that products promising fixed daily or guaranteed profits are likely scams.
What changed
- : Page launched with initial picks. Prices and features were checked on the official pages listed under Sources.
FAQ
What is the best free crypto trading bot?
We pick Freqtrade: free, open source, with backtesting and dry-run. Hummingbot is the pick for market making. Not financial advice.
Are crypto trading bots profitable?
We make no profit claims. Grid and DCA bots can lose heavily in trending or crashing markets and leverage can liquidate an account. Test in dry-run first.
Is Freqtrade safe?
The code is auditable and keys stay on your machine, but you are responsible for hosting, updates and risk limits. Use trade-only keys with withdrawals off.
Sources
- Freqtrade README (GitHub)
- Hummingbot.org
- TradingAgentStack: open-source AI trading bots (Oct 23, 2026)
- Alpaca docs: Trading API MCP server
- GenAI Brief: best LLM for coding, October 2026
Disclosure: links marked "affiliate" may earn us a commission, and sponsored slots are always labeled. Neither affects our picks. Read our methodology.