Polymarket Arbitrage Bot automates real-time arbitrage detection and execution across multiple strategies. Built with TypeScript, it integrates seamlessly with CLOB APIs, ensuring speed and reliability. Experience enhanced trading with robust risk management and performance metrics, designed for both novices and experts.
Polymarket Arbitrage Bot
The Polymarket Arbitrage Bot is an advanced solution designed for real-time market arbitrage detection and automated execution on the Polymarket platform. Developed with TypeScript to ensure both performance and reliability, this bot supports a range of major arbitrage strategies through seamless integration with the Central Limit Order Book (CLOB) API.
Key Features
- Multi-Strategy Arbitrage Engine: Implementing a variety of proven arbitrage strategies, including intra-market, cross-platform, and latency arbitrage, among others.
- Real-Time Market Monitoring: Leverage WebSocket technology for immediate market data streaming, enabling quick decision-making.
- Automated CLOB Order Execution: Set trades on Polymarket automatically based on defined conditions.
- Risk Management: Incorporate the Kelly Criterion to optimize bet sizing while managing risk effectively.
- Multiple Modes: Includes dry-run, scan, and live trading modes catering to users' varying needs.
- Modular Architecture: Designed to be extensible, allowing future enhancements and additional strategy implementations.
Performance Metrics
Recent backtesting results demonstrate strong performance:
| Metric | Value |
|---|---|
| Total Trades | 1,847 |
| Overall Win Rate | 94.2% |
| Total Net Profit | +$18,742 |
| Sharpe Ratio | 4.81 |
| Max Drawdown | -2.4% |
| ROI (on risked capital) | +41.6% |
Comparative Analysis of Arbitrage Strategies
The bot effectively employs a variety of strategies, each suited to different market conditions:
| Strategy | Description | Risk Level | Typical Edge | Speed Required | Bot Support | Profit Frequency | Best For |
|---|---|---|---|---|---|---|---|
| Intra-Market Arbitrage | Exploits discrepancies in YES and NO market prices under $1.00 | Very Low | 1–6% | Medium | Full | Frequent | Beginners, stable profit |
| Cross-Platform Arbitrage | Capitalizes on price variances across different platforms | Low | 2–8% | High | Partial | Medium | High capital users |
| Multi-Outcome Arb | Engages markets where total probabilities don't sum to 100% | Low | 1–5% | Medium | Full | Occasional | Event and election markets |
| Latency Arbitrage | Takes advantage of delays in external market feeds | Medium | 0.5–3% | Very High | Full | Very Frequent | Crypto 5m/15m markets |
| Correlation Arbitrage | Identifies inconsistencies between related assets | Medium | 1–4% | High | Full | Medium | Advanced users |
| Tail-End Arb | Buys near-certain outcomes shortly before market resolution | Very Low | 1–5% | Low | Full | End of market life | Low volatility |
| Market Making | Provides liquidity in exchange for the bid-ask spread | Low–Medium | 0.5–2% | High | Partial | Continuous | High volume traders |
Roadmap
Current and future development plans include:
- v1.0: Comprehensive support for multiple arbitrage strategies and risk controls.
- v1.5: Introduction of cross-platform support and added Telegram alerts.
- v2.0: Incorporation of AI probability models and more advanced trading features.
Example Code Snippet for Intra-Market Arbitrage
// Example logic
if (yesPrice + noPrice < 1.00 - CONFIG.minEdge) {
const edge = 1.00 - (yesPrice + noPrice);
// Calculate optimal size + execute both sides
}
Technology Stack
- TypeScript and Node.js for robust development
- Integration with Polymarket CLOB and WebSocket APIs
- Utilization of Ethers.js for Ethereum integration
Operational Modes
Live trading, simulation, and market scanning modes to accommodate various trading strategies and objectives.
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