📘Chapter 2: "Live or Simulated Trading? Freqtrade trade Command Explained"

This article was produced by the Quantitative Trading Lab at https://www.itrade.icu. Visit for more benefits.

freqtrade trade is the core command to start a live or simulated trading bot, and it’s the key step for deploying automated trading in practice.

This article provides an in-depth guide to the trade command, covering usage, common parameters, configuration tips, and Docker deployment, ideal for those preparing for live trading or just finishing strategy backtesting.

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🚀 1. Basic Syntax

freqtrade trade \
  --config user_data/config.json \
  --strategy MyStrategy \
  --dry-run

Parameter Explanation

Parameter	Description
--config	Path to the configuration file
--strategy	Strategy class to use
--dry-run	Enable dry-run (simulated trading) mode, recommended by default
--logfile	Path to save log output
--db-url	Specify database file or connection (for storing trade history)
--userdir	Set user directory path (default user_data/)

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🧪 2. What is Dry-run Mode?

Dry-run mode = no real orders, only simulated orders and log recording.

Suitable for:

• ✅ Strategy verification (ensure logic is correct)

• ✅ Test run before live deployment

• ✅ Avoid real losses from misconfiguration

When ready for live deployment, disable the parameter:

freqtrade trade --config user_data/config.json --strategy MyStrategy

⚠️ It is recommended to run dry-run for at least 7 days before going live!

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🧩 3. Multi-strategy Support

You can load multiple strategies or strategy paths via command-line arguments:

freqtrade trade \
  --config user_data/config.json \
  --strategy-path user_data/strategies \
  --strategy MyStrategyA MyStrategyB

Or combine multiple config files (for multi-account / multi-platform):

freqtrade trade -c spot_config.json -c futures_config.json

Notes for multi-strategy:

• All strategies must be importable from the specified directory

• Use --strategy-path to specify additional paths if needed

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🐳 4. Running trade in Docker

Running in a Docker container is safer and easier to deploy, recommended with docker-compose:

docker compose run --rm freqtrade trade \
  --config /quants/freqtrade/user_data/config.json \
  --strategy MyStrategy \
  --dry-run

Example docker-compose.yml:

services:
  freqtrade:
    image: freqtradeorg/freqtrade:stable
    volumes:
      - ./user_data:/quants/freqtrade/user_data
    command: >
      trade
      --config /quants/freqtrade/user_data/config.json
      --strategy MyStrategy
      --logfile /quants/freqtrade/user_data/logs/freqtrade.log

After starting, you can access the Web UI to monitor trades:

http://localhost:8888

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🧷 5. Recommended Configuration Options

In config.json, it’s recommended to enable the following to ensure safety:

{
  "dry_run_wallet": 1000,
  "dry_run": true,
  "max_open_trades": 3,
  "stake_currency": "USDT",
  "tradable_balance_ratio": 0.9,
  "timeframe": "15m"
}

Also recommended to configure:

• exchange → key/secret: real API keys needed for live trading

• logging → logfile: log output

• db_url: connect to SQLite/Postgres to store trade history

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✅ 6. Pre-Live Checklist

Check Item	Recommendation
Strategy backtested?	✅ At least 6 months of historical data
Dry-run tested?	✅ Simulated run for 7+ days
Complete config.json?	✅ Include risk management, coins, leverage, etc.
API key set?	✅ And recommend IP whitelist
Monitor logs and errors?	✅ Save logs using --logfile

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📌 Summary

The trade command is Freqtrade’s “final step” and the closest to real trading profits.

This article covered:

• Basic syntax and parameters of trade

• Benefits and recommended practices for Dry-run

• Multi-strategy / multi-config combinations

• Full Docker deployment workflow

Mastering these skills will help you transition from a strategy developer to a fully capable automated live trading operator.