Automating BTC Options Trading: Building a Telegram Bot for the 1% Short Strangle Strategy

In the fast-paced world of cryptocurrency options trading, timing and execution are everything. Today, I'm excited to share a powerful trading automation tool I've developed: a Telegram bot that executes a short strangle strategy on Bitcoin options with just a few clicks. This article will walk you through the strategy, its risk-reward profile, and how the bot makes professional options trading accessible to everyone.

The 1% Short Strangle Strategy: A Statistical Edge

What is a Short Strangle?

A short strangle is an options strategy where you simultaneously sell an out-of-the-money (OTM) call option and an OTM put option with the same expiration date. It's a market-neutral strategy that profits from time decay and low volatility.

Why 1% Strikes?

Analysis of BTCUSD price movements during the 7AM-12PM timeframe reveals consistent patterns with moderate volatility. The data shows that Bitcoin typically moves up 0.283% from open to high and down -0.265% from open to low during these morning hours.

Key Insights

1. Low Volatility Dominance: Over 79% of the time, the high is within 0.4% of the open, and the low is within -0.4% of the open.
2. Symmetric Movement: The average upward and downward movements are nearly identical in magnitude (~0.28% up vs -0.27% down), suggesting balanced buying and selling pressure.
3. Extreme Movements are Rare:
   • Only 0.5% of sessions see gains >2%
   • Only 0.6% of sessions see losses >2%
4. Typical Trading Range: The average range (high-low) during these hours is approximately 0.55% of the opening price.
5. Risk/Reward Profile:
   • 95% of upward moves are under 0.8%
   • 95% of downward moves are within -0.8%
   • This suggests tight stop-losses could be effective during these hours

This data suggests that selling options 1% away from the current price captures premium while maintaining a favorable probability of success.

Executing this strategy manually requires:

1. Checking for today's expiry options at 7AM
2. Calculating 1% offset strikes
3. Finding the closest available strikes
4. Placing two market orders
5. Setting stop losses for risk management
6. Monitoring positions throughout the day

This process is time-consuming and prone to emotional decision-making or execution errors. The Solution: A Telegram Trading Bot I developed a Telegram bot that automates the entire process while giving traders full control over their risk parameters. Here's what makes it special:

Key Features of the Bot : https://t.me/OptionOrdersBot

1. User-Friendly Setup

• Simple API credential configuration
• Secure storage of user preferences
• One-time setup process

2. Customizable Risk Management Users can choose their stop loss preference:

• 1x Premium: Tight stop loss (conservative)
• 2x Premium: Balanced approach
• 3x Premium: Higher risk tolerance

3. Real-Time Execution Feedback The bot provides step-by-step updates:

4. Safety Features

• Confirmation required before execution
• Automatic stop loss placement
• Detailed execution logs
• Position tracking

Technical Architecture Core Components

1. Delta Exchange API Integration
   • Authenticated requests for trading
   • Real-time price feeds
   • Order management
2. Telegram Bot Framework
   • Interactive keyboard navigation
   • Conversation state management
   • Error handling
3. Data Persistence
   • User credentials (encrypted recommended)
   • Trade history
   • Execution logs

Security Considerations

• API credentials never leave the server
• IP whitelisting on exchange
• User-specific isolation
• Audit trail for all actions

Conclusion :

This Telegram bot transforms a sophisticated options strategy into a simple, executable system that anyone can use. By combining statistical edge with automation, it removes emotional decision-making and execution errors from the equation. The beauty of this approach lies in its accessibility – professional-grade options trading is now just a few taps away on your phone. Whether you're a seasoned trader looking to automate your strategy or someone new to options wanting a systematic approach, this bot provides a robust framework for consistent execution.