AI Bitcoin Trading Bot: Automated Option Strategies

Project: Personal AI assistant for Bitcoin options trading via Deribit with Telegram interface

Bitcoin options Deribit API Long Straddle Telegram bot n8n workflows

The challenge

Trading Bitcoin options requires continuous market analysis, fast decision-making and accurate order execution. Manually searching for the right strike prices, calculating break-even points and monitoring positions is time-consuming and error-prone.

The goal: an AI assistant that automatically proposes option combinations, can execute them on command, and can monitor the portfolio — all via a simple Telegram chat.

The core question

"How can AI help me identify, execute and manage Bitcoin option strategies without constantly staring at a screen?"

Disclaimer

This is a personal project for educational purposes. Trading in options carries significant risks. This bot is not intended as investment advice.

The strategy: Long Straddle

The bot specialises in identifying and executing Long Straddle positions on Bitcoin.

What is a Long Straddle?

Call option

Right to buy BTC at a certain price

Put option

Right to sell BTC at the same price

ATM Strike

At-the-money: close to the current BTC price

60–90 days

Optimal duration for time value

When is it profitable?

A Long Straddle is profitable when the Bitcoin price moves significantly — up or down. The strategy benefits from volatility.

  • Large price increase — Call option becomes valuable
  • Large price drop — Put option becomes valuable
  • Time decay — Both options lose value when price stagnates

Risks

  • Maximum loss — Total premium paid
  • Time decay — Value falls if price does not move
  • Break-even — Price must move enough to recover the premium

Solution: Central AI Agent

An AI-driven manager that coordinates all trading operations via natural language.

Proposal Agent

Analyses the market and automatically proposes new straddle positions with optimal strike and expiry.

Open Trade Agent

Executes buy orders for Call and Put options on the Deribit platform.

Close Trade Agent

Closes existing positions by selling the options with reduce-only orders.

Portfolio Agent

Provides real-time insight into your current positions, P&L and account balance.

Chart Agent

Sends current Bitcoin charts with technical indicators (RSI, MACD) to Telegram.

Sheet Agent

Manages the Google Sheets database with all proposed and executed trades.

The workflow in action

From question to execution: this is how the trading bot works.

Telegram request

AI Agent

Sub-agent

Deribit API

Confirmation

Telegram commands

New proposal "Propose a straddle"
Portfolio check "What is my current portfolio?"
Open trade "Buy the proposed straddle"
Close position "Close my current positions"
Request chart "Send me the Bitcoin chart"
Market update "What is the current BTC price?"
Security

The bot only accepts commands from a pre-configured Telegram account and group. Unauthorised access attempts are reported.

The result

AI-driven analysis

Automatic identification of optimal strike prices and expiries based on market data.

Fast execution

From command to order in seconds. No manual entry of parameters.

Trade from anywhere

Manage your positions via Telegram, wherever you are. No laptop required.

Full audit trail

All proposals and trades are logged in Google Sheets for analysis.

Technical details

Technologies used

  • n8n — Workflow automation platform
  • Claude (Anthropic) — Primary AI for decision-making
  • GPT-5 (OpenAI) — Alternative AI model
  • Deribit API — Cryptocurrency derivatives exchange
  • Telegram Bot API — Mobile interface
  • Google Sheets — Trade logging and tracking
  • Chart-img API — TradingView charts

Architecture principles

  • Multi-agent — Specialised sub-agents per task
  • Self-hosted — Full control over data and keys
  • Failsafe — Fallback AI models on failure
  • Authenticated — Telegram user verification
  • Audit trail — Everything is logged in spreadsheets
  • Error handling — Dedicated error workflow

Interested in AI-driven automation?

Whether it's trading, administration or other processes: AI can take over many repetitive tasks.
Let's discuss what's possible for your situation.

Schedule a call
Questions about AI for your business?

De_AIjk Assistant

Connecting...
Hello! I'm the AI assistant of De_AIjk. How can I help you?