59 lines
3.0 KiB
Markdown
59 lines
3.0 KiB
Markdown
# Freqtrade basics
|
|
|
|
This page will try to teach you some basic concepts on how freqtrade works and operates.
|
|
|
|
## Freqtrade terminology
|
|
|
|
* Trade: Open position
|
|
* Open Order: Order which is currently placed on the exchange, and is not yet complete.
|
|
* Pair: Tradable pair, usually in the format of Quote/Base (e.g. XRP/USDT).
|
|
* Timeframe: Candle length to use (e.g. `"5m"`, `"1h"`, ...).
|
|
* Indicators: Technical indicators (SMA, EMA, RSI, ...).
|
|
* Limit order: Limit orders which execute at the defined limit price or better.
|
|
* Market order: Guaranteed to fill, may move price depending on the order size.
|
|
|
|
## Fee handling
|
|
|
|
All profit calculations of Freqtrade include fees. For Backtesting / Hyperopt / Dry-run modes, the exchange default fee is used (lowest tier on the exchange). For live operations, fees are used as applied by the exchange (this includes BNB rebates etc.).
|
|
|
|
## Bot execution logic
|
|
|
|
Starting freqtrade in dry-run or live mode (using `freqtrade trade`) will start the bot and start the bot iteration loop.
|
|
By default, loop runs every few seconds (`internals.process_throttle_secs`) and does roughly the following in the following sequence:
|
|
|
|
* Fetch open trades from persistence.
|
|
* Calculate current list of tradable pairs.
|
|
* Download ohlcv data for the pairlist including all [informative pairs](strategy-customization.md#get-data-for-non-tradeable-pairs)
|
|
This step is only executed once per Candle to avoid unnecessary network traffic.
|
|
* Call `bot_loop_start()` strategy callback.
|
|
* Analyze strategy per pair.
|
|
* Call `populate_indicators()`
|
|
* Call `populate_buy_trend()`
|
|
* Call `populate_sell_trend()`
|
|
* Check timeouts for open orders.
|
|
* Calls `check_buy_timeout()` strategy callback for open buy orders.
|
|
* Calls `check_sell_timeout()` strategy callback for open sell orders.
|
|
* Verifies existing positions and eventually places sell orders.
|
|
* Considers stoploss, ROI and sell-signal.
|
|
* Determine sell-price based on `ask_strategy` configuration setting.
|
|
* Before a sell order is placed, `confirm_trade_exit()` strategy callback is called.
|
|
* Check if trade-slots are still available (if `max_open_trades` is reached).
|
|
* Verifies buy signal trying to enter new positions.
|
|
* Determine buy-price based on `bid_strategy` configuration setting.
|
|
* Before a buy order is placed, `confirm_trade_entry()` strategy callback is called.
|
|
|
|
This loop will be repeated again and again until the bot is stopped.
|
|
|
|
## Backtesting / Hyperopt execution logic
|
|
|
|
[backtesting](backtesting.md) or [hyperopt](hyperopt.md) do only part of the above logic, since most of the trading operations are fully simulated.
|
|
|
|
* Load historic data for configured pairlist.
|
|
* Calculate indicators (calls `populate_indicators()`).
|
|
* Calls `populate_buy_trend()` and `populate_sell_trend()`
|
|
* Loops per candle simulating entry and exit points.
|
|
* Generate backtest report output
|
|
|
|
!!! Note
|
|
Both Backtesting and Hyperopt include exchange default Fees in the calculation. Custom fees can be passed to backtesting / hyperopt by specifying the `--fee` argument.
|