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2024 will be a super bull market for the crypto world, supported by BTC halving and USD interest rate cuts. If you are a programmer, quickly learn quantitative trading robots!
Prerequisite: You are familiar with using cloud server SSH terminal connections and basic Python syntax (having a JavaScript background is also acceptable)
This article uses the Python quantitative robot framework freqtrade to get started!
freqtrade official documentation
The official documentation is extensive, please follow this introductory reading first, and refer to the official documentation for further study.
Choose the Ubuntu system for the cloud server and configure the Docker environment by sequentially executing the following commands:
sudo apt update
sudo apt install apt-transport-https ca-certificates curl gnupg-agent software-properties-common
curl -fsSL https://download.docker.com/linux/ubuntu/gpg | sudo apt-key add -
sudo add-apt-repository "deb [arch=amd64] https://download.docker.com/linux/ubuntu $(lsb_release -cs) stable"
sudo apt update
sudo apt install docker-ce
After logging into your server via SSH, start in the terminal with the following commands:
It is recommended to use the SSH remote container of VS Code for more convenience!
mkdir ft_userdata
cd ft_userdata/
curl https://raw.githubusercontent.com/freqtrade/freqtrade/stable/docker-compose.yml -o docker-compose.yml
docker compose pull
docker compose run --rm freqtrade create-userdir --userdir user_data
After execution, it will create a docker-compose.yml file and a user_data directory.
Then initialize the configuration file config.json
docker compose run --rm freqtrade new-config --config user_data/config.json
You will be asked a few questions continuously, select Y/N and press Enter, operate according to the log example below:
Please Google search for creating a Telegram bot token and Telegram installation
? Do you want to enable Dry-run (simulated trades)? Yes ## Whether to use a simulated account operation, which is simulated trading. Setting to false will use the real balance in your account for trading.
? Please insert your stake currency: USDT ## Currency unit, here defaults to USDT
? Please insert your stake amount (Number or 'unlimited'): unlimited ## Maximum open position ratio, unlimited means all amounts will be used by the bot. You can also specify like 100, which only gives the bot 100 USDT to trade.
? Please insert max_open_trades (Integer or -1 for unlimited open trades): 3 ## Maximum number of open positions, which means how many types of coins you can buy. 3 means the bot can buy up to 3 types of currencies.
? Time Have the strategy define timeframe. ## Whether to use the timeline in the strategy, here the default is used. Generally, the timeline in the strategy is the best.
? Please insert your display Currency (for reporting): USD ## The unit used for displaying returns in the bot, can be set to CNY to be displayed in RMB
? Select exchange okx ## Select the exchange, here OKX is chosen as an example
? Do you want to trade Perpetual Swaps (perpetual futures)? Yes ## Whether to enable contract mode, set false for spot trading.
? Do you want to enable Telegram? Yes ## Enable Telegram bot
? Insert Telegram token # Telegram bot token
? Insert Telegram chat id # Telegram bot ID
? Do you want to enable the Rest API (includes FreqUI)? Yes # Web management console page
? Insert Api server Listen Address (0.0.0.0 for docker, otherwise best left untouched) 0.0.0.0 # Web management console IP port
? Insert api-server username freqtrader # Web management console account
? Insert api-server password ****** # Web management console password
The configuration file of the trading robot is the most important, here is an explanation:
{
// Trading mode, there are three options: spot (default, spot trading), future (futures trading, can short), margin (currently unavailable)
"trading_mode": "spot",
// When the trading mode is not spot, you need to set here. When the trading mode is future, set to isolated, and when it is margin, set to cross (temporarily unavailable)
// "margin_mode": "isolated",
// Maximum number of trades
"max_open_trades": 5,
// Cryptocurrency used for trading
"stake_currency": "USDT",
// Amount available to the bot, you can run multiple bots to trade and balance strategy differences
"stake_amount": 200,
// Ratio of the total balance allowed for trading by the bot
"tradable_balance_ratio": 1,
// Convert from cryptocurrency to which fiat currency, here is USD, if conversion errors occur, it can be unset
// "fiat_display_currency": "USD",
// Operating mode, virtual or real, true is virtual
"dry_run": true,
// Timeframe to use 1m, 5m, 15m, 30m, 1h... this configuration can be omitted here, and reconfigured in the strategy file, meaning that the configuration in the strategy file overrides this
"timeframe": "3m",
// Total amount for virtual operation
"dry_run_wallet": 1000,
// Cancel unfilled orders on exit
"cancel_open_orders_on_exit": true,
// Required configuration
"unfilledtimeout": {
// As long as there is a signal, the bot will wait for how long to complete an unfilled entry order (in minutes or seconds), after which the order will be canceled and repeated at the current (new) price.
"entry": 10,
// As long as there is a signal, the bot will wait for how long to complete unfilled exit orders (in minutes or seconds), after which the orders will be canceled and repeated at the current (new) price
"exit": 30
},
// Exchange settings
"exchange": {
"name": "okx",
// API key
"key": "",
// API secret
"secret": "",
// Some settings for `ccxt`, usually unused abroad, can set proxy here in China
"ccxt_config": {},
"ccxt_async_config": {},
// Whitelist for trading pairs
// 1INCH/USDT is spot trading
// 1INCH/USDT:USDT is futures trading
// You can use wildcard here for batch configuration, no need to list all trading pairs
// Check trading pairs supported by the exchange, command: `freqtrade list-markets -c config.json` or `freqtrade list-pairs -c config.json`
"pair_whitelist": [
"1INCH/USDT:USDT",
"ALGO/USDT:USDT"
],
// Blacklist
"pair_blacklist": [
// Blacklist wildcard settings, same as whitelist
"*/BNB"
]
},
"entry_pricing": {
// Must configure, select which side of the spread the robot should look at to obtain the entry rate. Default is `same`, others are `ask`, `bid`, `other`
"price_side": "same",
// Allow using rates from order book entries. Default is true
"use_order_book": true,
// Bot will use the first N rates from the "price_side" of the order book to enter trades. That is, a value of 2 will allow the bot to choose the second entry from the Order Book Entry.
"order_book_top": 1,
// Must configure, interpolated bid price.
"price_last_balance": 0.0,
"check_depth_of_market": {
// Do not enter if there is a discrepancy between bids and asks in the Order Book.
"enabled": false,
// The ratio difference of bids and asks in the Order Book. A value below 1 indicates a larger ask size, while a value above 1 indicates a larger bid size
"bids_to_ask_delta": 1
}
},
"exit_pricing": {
// Select which side of the spread the robot should look at to obtain the exit rate. Default is `same`
"price_side": "other",
"use_order_book": true,
"order_book_top": 1
},
// Define one or more pair lists to use.
"pairlists": [
// Many methods here, [click to see details](https://www.freqtrade.io/en/stable/plugins/#pairlists-and-pairlist-handlers)
// Mostly uses `StaticPairList` by default
{
"method": "StaticPairList"
}
],
// You can also add `freqUI` configs and `telegram bot` configs later
"bot_name": "",
"force_entry_enable": true,
"initial_state": "running",
"internals": {
"process_throttle_secs": 5
}
}
In the config settings, the most important are dry_run and trading_mode. In the exchange section, configure the API key and secret of the exchange; on OKX, you can create apiKey in the API section of the app.
Here's my own config file for contract trading type:
{
"tradable_balance_ratio": 0.99,
"fiat_display_currency": "CNY",
"stake_amount": "unlimited",
"stake_currency": "USDT",
"amend_last_stake_amount": true,
"dry_run_wallet": 1600,
"max_open_trades": 10,
"dry_run": false,
"cancel_open_orders_on_exit": false,
"trading_mode": "futures",
"margin_mode": "isolated",
"unfilledtimeout": {
"entry": 10,
"exit": 10,
"exit_timeout_count": 0,
"unit": "minutes"
},
"entry_pricing": {
"price_side": "other",
"use_order_book": true,
"order_book_top": 1,
"price_last_balance": 0.0,
"check_depth_of_market": {
"enabled": false,
"bids_to_ask_delta": 1
}
},
"exit_pricing": {
"price_side": "other",
"use_order_book": true,
"order_book_top": 1
},
"exchange": {
"name": "okx",
"key": "",
"secret": "",
"password": "",
"ccxt_config": {},
"ccxt_async_config": {},
"pair_blacklist": [
"(BTCUSDT_.*|ETHUSDT_.*)",
"(GT|HT)/.*",
"(WBTC|BSV|BTCDOM|DEFI)/.*",
".*(_PREMIUM|BEAR|BULL|DOWN|HALF|HEDGE|UP|[1235][SL])/.*",
"(AUD|BRZ|CAD|CHF|EUR|GBP|HKD|IDRT|JPY|NGN|RUB|SGD|TRY|UAH|USD|ZAR|UST)/.*",
"(BUSD|CUSDT|DAI|PAX|PAXG|SUSD|TUSD|USDC|USDT|VAI|USDN)/.*",
"(ACM|AFA|ALA|ALL|APL|ASR|ATM|BAR|CAI|CITY|FOR|GOZ|IBFK|LEG|LOCK-1|NAVI|NOV|OG|PFL|PSG|ROUSH|STV|TH|TRA|UCH|UFC|YBO)/.*"
]
},
"pairlists": [
{
"method": "VolumePairList",
"number_assets": 20,
"sort_key": "quoteVolume",
"min_value": 0,
"refresh_period": 86400,
"lookback_days": 1
},
{
"method": "AgeFilter",
"min_days_listed": 10
},
{
"method": "PrecisionFilter"
},
{
"method": "PriceFilter",
"low_price_ratio": 0.01
},
{
"method": "SpreadFilter",
"max_spread_ratio": 0.002
},
{
"method": "RangeStabilityFilter",
"lookback_days": 3,
"min_rate_of_change": 0.02,
"refresh_period": 1440
},
{
"method": "ShuffleFilter",
"seed": 42
}
],
"telegram": {
"enabled": true,
"token": "",
"chat_id": "",
"keyboard": [
[
"/daily",
"/status table",
"/count"
],
[
"/profit",
"/performance",
"/balance"
],
[
"/status",
"/show_config",
"/whitelist"
],
[
"/logs",
"/reload_config",
"/help"
]
]
},
"edge": {
"enabled": false,
"process_throttle_secs": 3600,
"calculate_since_number_of_days": 14,
"allowed_risk": 0.01,
"stoploss_range_min": -0.01,
"stoploss_range_max": -0.1,
"stoploss_range_step": -0.01,
"minimum_winrate": 0.60,
"minimum_expectancy": 0.20,
"min_trade_number": 10,
"max_trade_duration_minute": 1440,
"remove_pumps": false
},
"api_server": {
"enabled": false,
"listen_ip_address": "127.0.0.1",
"listen_port": 8080,
"verbosity": "error",
"enable_openapi": false,
"jwt_secret_key": "",
"ws_token": "",
"CORS_origins": [],
"username": "",
"password": ""
},
"bot_name": "freqtrade",
"initial_state": "running",
"force_entry_enable": true,
"internals": {
"process_throttle_secs": 5
}
}
In the user_data/strategies directory, you will be given a default strategy file, with a brief explanation of the content:
Simplified Code
class SampleStrategy(IStrategy):
INTERFACE_VERSION = 3 # Only version 3 can short
can_short: bool = False # Can short or not
# Take Profit
minimal_roi = {
"60": 0.01,
"30": 0.02,
"0": 0.04
}
# Stop Loss
stoploss = -0.10
# Trailing Stop
trailing_stop = False
# Use which timeframe's K-line
timeframe = '5m'
# Set Indicator
def populate_indicators(self, dataframe: DataFrame, metadata: dict) -> DataFrame:
return dataframe
# Entry
def populate_entry_trend(self, dataframe: DataFrame, metadata: dict) -> DataFrame:
dataframe.loc[
(
(qtpylib.crossed_above(dataframe['rsi'], self.buy_rsi.value))
),
'enter_long'] = 1 # Entry signal, long
dataframe.loc[
(
(qtpylib.crossed_above(dataframe['rsi'], self.short_rsi.value))
),
'enter_short'] = 1 # Entry signal, short
return dataframe
# Exit
def populate_exit_trend(self, dataframe: DataFrame, metadata: dict) -> DataFrame:
dataframe.loc[
(
(qtpylib.crossed_above(dataframe['rsi'], self.sell_rsi.value)) # RSI crosses sell_rsi
),
'exit_long'] = 1 # Exit signal, close long
dataframe.loc[
(
(qtpylib.crossed_above(dataframe['rsi'], self.exit_short_rsi.value)) # RSI crosses exit_short_rsi
),
'exit_short'] = 1 # Exit signal, close short
return dataframe
This is a sample strategy and may not be optimal. There are many community websites where you can find strategies that can be copied and used directly.
Open the docker.compose.yml file:
---
version: '3'
services:
freqtrade:
image: freqtradeorg/freqtrade:stable # Official image
restart: unless-stopped
container_name: freqtrade
volumes:
- "./user_data:/freqtrade/user_data"
ports:
- "127.0.0.1:8080:8080"
command: >
trade
--logfile /freqtrade/user_data/logs/freqtrade.log # Output log file
--db-url sqlite:////freqtrade/user_data/tradesv3.sqlite # Database
--config /freqtrade/user_data/config.json # Robot config file
--strategy SmartTA # Strategy file class name
Focus on the --strategy parameter. The name following it is the class name in the strategy code, not the file name.
In the terminal, execute:
docker compose up -d
Start, and you can see the startup log in the user_data/logs/freqtrade.log file. The Telegram bot will also print out logs.
Lastly, regarding backtesting, freqtrade provides the functionality to backtest. I can only say it can verify if there are any bugs in the strategy file code logic. The yield results from backtesting and normal actual test runs vary significantly. It is suggested to run in a real environment with dry-run for some time before switching to a real account.
If you want to delve deeper into the field of quantification, read the following articles: