Trading bots · Top pick
Freqtrade: what it does, cost and setup
Free, open-source Python crypto trading bot with backtesting and dry-run.
Checked 2026-10-24
| Cost | Free (GPL-3.0). You pay for your own server and any exchange fees. |
|---|---|
| Free tier | Yes |
| Open source | Yes |
| Runs on | Self-hosted (Windows, macOS, Linux, Docker) |
| Source | GitHub: freqtrade/freqtrade |
What Freqtrade does
Freqtrade runs your own buy and sell strategy on crypto exchanges. It has backtesting, a dry-run mode that trades without real money, machine learning strategy optimization and FreqAI, a built-in web UI and Telegram control, per its GitHub README. Educational only, not financial advice. Trading involves risk of loss.
How to set up Freqtrade
- Install with Docker or Python 3.12+ from the official docs.
- Backtest a sample strategy on historical data.
- Run it in dry-run mode for weeks before any live keys.
- If you ever go live, use trade-only API keys with withdrawals off and small position caps.
Freqtrade vs alternatives
Freqtrade vs Hummingbot
Freqtrade is built for directional strategy bots with backtesting. Hummingbot is built for market making and arbitrage across many exchange connectors.
Freqtrade vs TradingAgents
TradingAgents produces a research decision and does not place orders. Freqtrade executes trades (or simulates them in dry-run).
Freqtrade alternatives
- Hummingbot: Open-source framework for crypto market making, with an AI harness. (Free (Apache 2.0). You pay for hosting and exchange fees.)
- TradingAgents: Multi-agent LLM framework for stock research decisions. Research only. (Free and open source. You pay for the LLM API calls it makes, or run a local model.)
Used in these setups
Freqtrade FAQ
Is Freqtrade free?
Yes. It is open source under GPL-3.0. Your costs are hosting and exchange fees.
Can I test Freqtrade without real money?
Yes. Backtesting simulates a strategy on past data and dry-run mode runs it live without placing real orders.
Does Freqtrade make money?
No bot guarantees returns, and backtests can be overfit. Treat it as a tool for testing ideas. This is not financial advice.
Sources
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