Polymarket Trading Bot

Automated trading system for Polymarket prediction markets.

Features

• Arbitrage Engine: Detects cross-market arbitrage opportunities
• Mispricing Engine: Compares Polymarket prices to external probability models
• Microstructure Engine: Analyzes order book for short-term signals
• Risk Management: Position limits, stop losses, drawdown protection
• Real-time Monitoring: Prometheus metrics, health checks, logging

Quick Start

Local Development

# Clone and install
git clone https://github.com/yourusername/polymarket-bot.git
cd polymarket-bot
pip install -r requirements.txt

# Configure
cp config.yaml.example config.yaml
# Edit config.yaml with your API keys

# Run
python -m polymarket_bot.main

Docker

# Build
docker build -t polymarket-bot .

# Run
docker run -d \
  -e POLYMARKET_API_KEY="$API_KEY" \
  -e POLYMARKET_PRIVATE_KEY="$PRIVATE_KEY" \
  -e LOG_LEVEL="INFO" \
  --name polymarket-bot \
  polymarket-bot

Railway Deployment

# Install Railway CLI
npm install -g @railway/cli

# Login
railway login

# Init project
railway init

# Set environment variables
railway variables set POLYMARKET_API_KEY="your_key"
railway variables set POLYMARKET_PRIVATE_KEY="your_key"

# Deploy
railway up

Configuration

Variable	Required	Description
POLYMARKET_API_KEY	Yes	Polymarket CLOB API key
POLYMARKET_PRIVATE_KEY	Yes	Private key for signing orders
ENABLE_ARB	No	Enable arbitrage strategy (default: true)
ENABLE_MISPRICING	No	Enable mispricing strategy (default: true)
ENABLE_MICRO	No	Enable microstructure strategy (default: true)
LOG_LEVEL	No	Logging level (default: INFO)
PAPER_TRADING	No	Paper trading mode (default: false)

Architecture

┌─────────────────────────────────────────────────────────────┐
│                    Polymarket Trading Bot                   │
├─────────────────────────────────────────────────────────────┤
│  ┌─────────────┐  ┌─────────────┐  ┌─────────────────────┐  │
│  │ Data Layer  │  │ Strategies  │  │ Risk Management     │  │
│  │ - WebSocket │  │ - Arb       │  │ - Position Limits   │  │
│  │ - REST API  │  │ - Misprice  │  │ - Stop Losses       │  │
│  │ - External  │  │ - Micro     │  │ - Drawdown Limit    │  │
│  └──────┬──────┘  └──────┬──────┘  └──────────┬──────────┘  │
│         │                │                     │             │
│         └────────────────┼─────────────────────┘             │
│                          ▼                                   │
│                 ┌─────────────────┐                          │
│                 │ Execution Layer │                          │
│                 │ - Order Manager │                          │
│                 │ - Fill Tracking │                          │
│                 └─────────────────┘                          │
└─────────────────────────────────────────────────────────────┘

API Endpoints

Endpoint	Method	Description
/health	GET	Health check
/metrics	GET	Prometheus metrics
/portfolio	GET	Current portfolio
/positions	GET	Open positions
/kill	POST	Trigger kill switch
/stop	POST	Stop bot gracefully

Backtesting

from polymarket_bot.backtest import BacktestEngine, HistoricalData

# Load historical data
data = HistoricalData.from_csv("historical_data.csv")

# Create strategy
def my_strategy(snapshot):
    # Your signal generation logic
    return signals

# Run backtest
engine = BacktestEngine()
result = engine.run(data, my_strategy)

print(f"Return: {result.total_return:.2%}")
print(f"Sharpe: {result.sharpe_ratio:.2f}")
print(f"Max Drawdown: {result.max_drawdown:.2%}")

Risk Warning

⚠️ This software trades real capital.

• Start with paper trading mode
• Never risk more than you can afford to lose
• Understand all strategies before deploying
• Monitor bot activity continuously

License

MIT License - see LICENSE file.