Freqtrade Operations, Market Support, and Backtesting Guidance
Summary
This FAQ explains operational limits and practical considerations for running the Freqtrade cryptocurrency trading bot. It describes supported spot and selected futures trading, short positions in futures when the strategy and configuration support them, and the one-position-per-pair limit. Dry-run mode is presented as a way to simulate activity without committing funds, while incomplete candles are excluded from strategies because they can create signals that cannot be reliably backtested or verified.
The guidance covers interpreting quiet periods, small samples of live trades, missing candles, stale market data, price-jump alerts, exchange balance refreshes, and residual coin dust caused by fee and lot-size rules. It also explains that hyperparameter searches can take substantial time because the search space and data workload can be large. Backtests offer an estimate of trade frequency but do not guarantee how trades will be distributed over time or predict future results. Much of the page is software support material rather than a tested trading strategy, and exchange-specific behavior can vary.
Key ideas
- Freqtrade supports spot markets and selected futures markets, with short selling available through futures strategies and configuration.
- The bot permits only one open position per pair, though an existing position may be adjusted.
- Dry-run simulation avoids real orders, while incomplete candles are excluded to prevent unverifiable repainting signals.
- Backtests can estimate activity but cannot guarantee live trade timing or future performance.
- Exchange fees, lot sizes, data gaps, and stale candles can affect order handling and trade availability.
- Hyperparameter searches may be computationally expensive because their workload depends on both the search space and data volume.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.