Limit Orders Not Filling, Market Orders Slipping? Understanding Freqtrade’s Order System

This article was produced by the Quantitative Trading Lab at https://www.itrade.icu. Visit for more benefits. In Freqtrade strategy execution, how orders are placed, how long they remain valid, and whether to use exchange-native stoploss orders directly affect execution efficiency and fund safety. The order system configuration is essentially the “last mile” to stable live trading. This guide explains key parameters with examples.

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📦 order_types — Control How Orders Are Placed

order_types = {
    "entry": "limit",      # Entry as limit order
    "exit": "limit",       # Exit as limit order
    "stoploss": "market"   # Stoploss as market order
}

Supported order types:

• limit: Default, posts a limit order waiting for execution. Lower slippage, but may miss opportunities.

• market: Executes immediately. Good for fast entries/exits, but may cause slippage.

Recommended combinations:

Scenario	entry	exit	stoploss
Conservative	limit	limit	market
High-frequency	market	market	market
Fast stoploss	limit	limit	market

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🕓 order_time_in_force — Order Validity Policy

order_time_in_force = {
    "entry": "GTC",
    "exit": "GTC"
}

Meaning:

• GTC (Good Till Canceled): Order remains until filled or canceled by the bot.

• IOC (Immediate Or Cancel): Executes as much as possible immediately, cancels remainder.

• FOK (Fill Or Kill): Must fully fill immediately, otherwise canceled.

Suggestions:

• GTC → best for limit orders (wait until filled).

• IOC/FOK → better for market execution when speed is priority.

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🔒 stoploss_on_exchange — Exchange-Level Stoploss Orders

order_types = {
    "stoploss_on_exchange": True,
    "stoploss_on_exchange_interval": 60,
    "stoploss_on_exchange_limit_ratio": 0.99
}

Explanation:

Parameter	Description
stoploss_on_exchange	Whether to use exchange-native stoploss (default False)
stoploss_on_exchange_interval	Frequency (seconds) to check stoploss order status
stoploss_on_exchange_limit_ratio	Limit price multiplier for stoploss (Trigger × ratio)

Example:

• Current price = 100 USDT, stoploss = -5% → trigger price = 95 USDT

• limit_ratio = 0.99 → stoploss limit order = 95 × 0.99 = 94.05 USDT

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✅ Why Enable Exchange Stoploss?

Type	Depends on bot running	Speed	Crash Protection	Slippage Control
Local Stoploss	Yes	Slow	❌	Poor
Exchange Stop	No (stored at exchange)	Fast	✅	✅

With exchange stoploss enabled, even if your bot crashes or loses connection, the exchange executes the stoploss automatically — much safer for live trading.

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⚠️ Two Key Concepts in Stoploss Orders

✅ Trigger Price

• The condition price at which the stoploss order is placed on the market.

• Example: Stoploss = -5%, entry = 100 → trigger = 95.

✅ Limit Price

• The actual order price (controlled by limit_ratio).

• Prevents excessive slippage.

• Example: 95 (trigger) × 0.99 = 94.05 (limit).

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📌 Example Configuration (Recommended)

order_types = {
    "entry": "limit",
    "exit": "limit",
    "stoploss": "market",
    "stoploss_on_exchange": True,
    "stoploss_on_exchange_interval": 60,
    "stoploss_on_exchange_limit_ratio": 0.985
}

order_time_in_force = {
    "entry": "GTC",
    "exit": "GTC"
}

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🧠 Summary Recommendations

Parameter	Description	Recommended Setting
order_types.entry	Entry order type	"limit" (default)
order_types.exit	Exit order type	"limit"
order_types.stoploss	Stoploss order type	"market"
stoploss_on_exchange	Use exchange-native stoploss	True (recommended)
stoploss_on_exchange_limit_ratio	Distance between trigger & limit	0.99 ~ 0.985
order_time_in_force	Order validity policy	"GTC" (default)