diff --git a/.pre-commit-config.yaml b/.pre-commit-config.yaml
index 93583de50..28eb0ae38 100644
--- a/.pre-commit-config.yaml
+++ b/.pre-commit-config.yaml
@@ -5,11 +5,30 @@ repos:
     rev: '4.0.1'
     hooks:
     -   id: flake8
-        args: 
-        -   max-line-length = 100,
-        -   max-complexity = 12
+        stages: [push]
+
 -   repo: https://github.com/pre-commit/mirrors-mypy
     rev: 'v0.942'
     hooks:
     -   id: mypy
-        args: [--ignore-missing-imports]
+        stages: [push]
+
+-   repo: https://github.com/pycqa/isort
+    rev: '5.10.1'
+    hooks:
+      - id: isort
+        name: isort (python)
+        stages: [push]
+
+# https://github.com/pre-commit/pre-commit/issues/761#issuecomment-394167542
+-   repo: local
+    hooks:
+    -   id: pytest
+        name: pytest
+        entry: venv/bin/pytest
+        language: script
+        pass_filenames: false
+        # alternatively you could `types: [python]` so it only runs when python files change
+        # though tests might be invalidated if you were to say change a data file
+        always_run: true
+        stages: [push]
\ No newline at end of file
diff --git a/CONTRIBUTING.md b/CONTRIBUTING.md
index b4e0bc024..ae9c5d81e 100644
--- a/CONTRIBUTING.md
+++ b/CONTRIBUTING.md
@@ -20,6 +20,8 @@ Best start by reading the [documentation](https://www.freqtrade.io/) to get a fe
 
 ## Before sending the PR
 
+Do the following if you disabled pre-commit hook when commiting.
+
 ### 1. Run unit tests
 
 All unit tests must pass. If a unit test is broken, change your code to 
diff --git a/setup.sh b/setup.sh
index ebfabaca5..2c3a6710b 100755
--- a/setup.sh
+++ b/setup.sh
@@ -51,6 +51,7 @@ function updateenv() {
     echo "pip install in-progress. Please wait..."
     ${PYTHON} -m pip install --upgrade pip
     read -p "Do you want to install dependencies for dev [y/N]? "
+    dev=$REPLY
     if [[ $REPLY =~ ^[Yy]$ ]]
     then
         REQUIREMENTS=requirements-dev.txt
@@ -88,6 +89,12 @@ function updateenv() {
     fi
     echo "pip install completed"
     echo
+    if [[ $dev =~ ^[Yy]$ ]] then
+        ${PYTHON} -m pre-commit install
+        if [ $? -ne 0 ]; then
+            echo "Failed installing pre-commit"
+            exit 1
+        fi
 }
 
 # Install tab lib