Flynt Finance

BTC Covered Calls X

Backtest Results and Specifications

BTC Covered Call X Backtests

Period : 2019-04-07 ~ 2023-03-30 (207 weeks)
Starting Capital : 100 BTC
Ending Capital : 1791 BTC
Lifetime Profit : +1690%
Profit p.a. : +106.4%
  • Lowest 1 year returns : 42.1%
  • Highest 1 year returns : 340.7%
Total Profitable Weeks : 85.5% (177/207)
  • Long Call/Put Win Ratio : 26.5% (9/34)
  • Short Call Win Ratio : 97.1% (168/173)
Max Drawdown : -16.4%
The following chart displays the price of bitcoin, the signal periods and the growth of capital from the backtest.
The following chart displays the backtest results in log scale.


Strategy Name : Bitcoin Covered Calls X
Strategy Summary : Signal-based systematic weekly call buying and selling
Strategy Details: This strategy is an options-based approach designed to increase the number of bitcoins on a weekly basis. The core method involves a covered call strategy, which involves selling out-of-the-money (OTM) options weekly and typically holding these positions until expiration.
Additionally, the strategy employs Flynt's proprietary 'UpMaybe signal' aimed at identifying periods of significant upside volatility. During these times, it seeks to capitalize on the movement by purchasing call and put options.
Longing call or put options offer the potential for convex returns and reduced risk of liquidation during high volatility. However, they also have a higher likelihood of expiring worthless. While the signals may not occur frequently and could have a relatively high failure rate, successful predictions can yield substantial returns.
Positions are generally held until expiry, but under certain circumstances the positions may be exited earlier to lock in profits or prevent further potential loss.
Risks : Shorting calls options may lead to major and even total loss of the initial investment due to the use of leverage. It is appropriate for those with a high-risk tolerance and who want to incrementally increase the number of the underlying asset quickly on a regular weekly basis. Due to the design of the strategy, losses do not occur often but will lead to large drawdowns when they do occur. Please refer to the terms page for more details.
Goal : Maximize the number of bitcoins with the lowest drawdown
Accounting Currency : BTC
Initial Leverage Limit : Maximum 5x leverage for shorts. However, the leverage ratio on the account may increase to over 5x as the price of the option fluctuates.
Trading Venue : Deribit, Paradigm(block trades)

Live Performance

Coming soon
Disclaimer: The primary outcomes presented herein are derived from a backtest, which is a simulation relying on historical data. While every effort has been made to ensure accuracy in modeling, it is crucial to note that this content does not constitute financial advice. Past performance should not be considered an indicator or guarantee of future results. Please exercise caution when making financial decisions.