Bitcoin Option Selling Strategy

Learn about an intraday Bitcoin option selling strategy for crypto markets. Discover entry logic, backtesting, and optimization on a trading platform.

Published · Updated · Methodology: Mixed

Part of: Algorithmic & Automated Trading

  • Methodology: Mixed
  • Content type: strategy
  • Timeframes: Intraday
  • Markets: Bitcoin Options, Crypto

Source video

Decoded from: Crypto Algo Trading Strategies: Bitcoin Option Selling Strategy with 497% returns by AlgoTest — watch the original

Key timestamps:

  • 0:00 - Introduction to Crypto Algo Trading Strategies
  • 0:24 - How to Access AlgoTest Crypto Bazaar
  • 1:36 - Filter Crypto Option Buying and Selling Strategies
  • 2:08 - Selecting a Bitcoin Option Selling Strategy
  • 2:57 - Backtesting the Crypto Algo Trading Strategy
  • 3:17 - Adding Slippage, Taxes, and Charges
  • 4:35 - Optimising Strategy Performance by Weekdays
  • 06:26 - Save and Trade the Strategy
  • 07:04 - How to Execute Strategy in Live Algo Trade

Strategy overview

Selling options means collecting premium up front and carrying the obligation that comes with it — a payoff profile in which the gain is capped at what was received and the loss is not. What this entry actually decodes, though, is not a ruleset but a purchase: the video walks through AlgoTest's "Crypto Bazaar", filters the catalogue down to crypto option buying and selling strategies, and picks a Bitcoin option selling strategy out of the listings. The strategy is chosen, not built.

That distinction shapes everything on this page. Because the source is a platform tour rather than a chart lesson, the strike selection, expiry, entry trigger and exit logic never appear on screen — they live inside the hosted listing. There are no indicator or rule fields here to fill, and that absence is a property of the source, not something held back. What the video does show is the workflow around the strategy: find it, filter for it, run its backtest, and then adjust that backtest for reality.

The last of those steps is the most instructive part of the recording. The title's headline percentage is a backtest figure attached to a catalogue listing, and the video's own closing chapter is devoted to adding slippage, taxes and charges — an implicit admission that a gross backtest number and a net-of-costs number are not the same number. For intraday short-premium positions on crypto options, where the credit collected per trade is small relative to spreads and fees, that adjustment is not a footnote; it is the part of the exercise that decides whether the approach survives contact with a live book.

Topics

bitcoin option selling · crypto trading strategy · trading strategy · bitcoin options · intraday strategy · algorithmic trading · pine script · tradingview strategy · crypto · bitcoin trading strategy · options trading strategy · selling options strategy

Frequently asked questions

What is a Bitcoin option selling strategy?

It is an approach that sells Bitcoin options to collect the premium, accepting the obligation attached to the contract. The profit is limited to the premium received while the adverse move is not similarly bounded, which is why position sizing and exit discipline matter more than entry accuracy in this family of strategies.

Does the return figure in the video title mean the strategy is profitable?

No. That number is a backtested result shown for a listing inside the platform's catalogue, not a verified live track record. Backtested returns depend entirely on the data, the assumptions and the costs applied — and the video itself goes on to add slippage, taxes and charges after running the test.

Why does the video add slippage, taxes and charges at the end?

Because option selling earns a fixed, usually modest credit per trade, transaction costs consume a meaningful share of that credit. On an intraday horizon the trade count is high, so spreads, fees and taxes compound quickly and a gross backtest can look very different from a net one.

Are the specific rules of this strategy shown in the video?

No — the source is a walkthrough of accessing, filtering and backtesting strategies inside AlgoTest's Crypto Bazaar, so the underlying strike, expiry and exit logic stay inside the hosted listing rather than being explained on screen. Strategy Decoder records what a video actually specifies, which for platform walkthroughs like this one is the workflow rather than the setup.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

Strategy Decoder catalogs 2,229 decoded strategies. Each one is extracted with confidence scoring, cross-linked to the indicators it uses, and kept up to date as new videos are processed daily. Load this page with JavaScript enabled to use the interactive tools, or start from the strategy explorer to filter by methodology, market and timeframe.

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