Strategy

Under the Hood of Black Swan

Black Swan is a trading bot that automatically executes an options strategy designed to profit from increased volatility — regardless of whether the market goes up or down. Investors' positions are therefore protected from any excessive risk while yielding solid returns.

It is simple: the investor connects their CEX account to the app using safe API keys — no collateral or funds transfer required. All funds remain on the client's account.

The Option Bot's Trading Strategy

The ETH-TopStrangle

ETH is historically more volatile than BTC. The ETH-TS bot turns ETH volatility into profits. No matter where the market heads, it constantly monitors prices and picks the best deal to deliver leveraged profits with zero risk of liquidation and the minimum possible cost per trade. The higher the uncertainty, the more you earn.

  • Profit from volatility
  • Every direction is good
  • Leverage without liquidation risk

What is a Long Strangle?

A long strangle involves simultaneously buying an out-of-the-money (OTM) call option and an OTM put option on the same asset with the same expiration date. This creates a position that profits from large price movements in either direction.

How It Works

  1. Daily Entry: The bot buys ETH call and put options each trading day (6 days/week, Saturday off) on Bybit.
  2. Fixed Risk: The maximum loss per day is the total premium paid — approximately 1% of your deposit.
  3. Volatility Capture: If ETH moves significantly in either direction before expiry, the winning option gains far more than the combined cost of both options.
  4. Daily Expiry: Options expire daily, so positions don't carry overnight risk beyond the premium paid.

Key Statistics

  • 2025 Full Year Return: +117%
  • Total Return (15 months live): +109%
  • Average Monthly Return: +7.6%
  • Win Rate: ~23% (2025)
  • Payoff Ratio: 7:1
  • Best Single Day: +11.4% (Feb 25, 2026)
  • Profitable Months: 9 of 15

Risk Considerations

While the strategy has shown strong historical results, options trading involves significant risk. The ~23% win rate means that most days result in small losses. Extended periods of low volatility can result in drawdowns. Always invest only what you can afford to lose.