Polymarket Arbitrage Trading Bot

An automated prediction market trading bot that operates on Polymarket’s short-duration Up/Down markets using real-time orderbook data and adaptive price prediction.

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Prove of work

bot_preview.mp4

Private version bot profile

Overview

This bot uses an artificial trading strategy to trade on Polymarket’s CLOB (Central Limit Order Book). It connects to live orderbook feeds, derives directional signals from price movements, places limit orders, and manages hedges with configurable risk controls.

Key features:

• Real-time WebSocket orderbook integration
• Adaptive price prediction with confidence scoring
• Configurable markets, position sizes, and risk limits
• Graceful shutdown with balance, allowance, and market status checks

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Requirements

• Node.js 18 or newer
• Polygon wallet funded with USDC
• Polygon RPC endpoint (for approvals and redemptions)

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Installation

git clone https://github.com/dev-protocol/Polymarket-Arbitrage-Trading-Bot
cd Polymarket-Arbitrage-Trading-Bot
npm install

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Configuration

Create a .env file in the project root. You can copy from any existing template and configure at least your private key and target markets.

Core Environment Variables

Variable	Description
PRIVATE_KEY	Polygon wallet private key. Never share this.
BOT_MARKETS	Comma-separated market slugs (e.g. btc, eth).
BOT_SHARES_PER_SIDE	Shares per side per trade.
BOT_TICK_SIZE	Price precision (e.g. 0.01).
BOT_PRICE_BUFFER	Optional execution buffer (cents).
BOT_WAIT_FOR_NEXT_MARKET_START	Align start with the next 15‑minute boundary.
BOT_MAX_BUY_COUNTS_PER_SIDE	Max buys per side per market (0 = unlimited).
CHAIN_ID	EVM chain ID (Polygon mainnet: 137).
CLOB_API_URL	Base URL for the CLOB API.
RPC_URL / RPC_TOKEN	RPC endpoint for approvals and redemptions.
BOT_MIN_USDC_BALANCE	Minimum USDC balance required to start.
LOG_DIR / LOG_FILE_PREFIX / LOG_FILE_PATH	Logging configuration.

Backward compatibility: The bot still supports the legacy COPYTRADE_* variable names. New setups should use the BOT_* names above.

API credentials are created on first run and stored under src/data/.

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Running the Bot

Start the trading runtime:

npm start

Redeem resolved markets and manage holdings:

npm run redeem
npm run redeem:holdings

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Development

npx tsc --noEmit
npx ts-node src/index.ts

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Architecture

The runtime is organized into three layers:

Application Runtime

• src/app/runner.ts — Orchestration: config validation, credentials, balance checks, allowance sync, and trading engine startup.
• src/index.ts — Entrypoint that delegates to the runner.

Infrastructure & Integration

• src/config/ — Loads .env and provides typed configuration.
• src/providers/ — Polymarket CLOB (HTTP/WebSocket) and other external services.
• src/security/ — Wallet checks, minimum balance validation, and allowance management.
• src/utils/ — Balance polling, logging, and redemption helpers.
• src/data/ — Local JSON state and credentials.

Strategy Engine

• src/order-builder/trading.ts — Arbitrage trading strategy: market slug resolution, price prediction, and order placement.

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Disclaimer

This software is experimental. Use at your own risk and only with funds you can afford to lose. Maintainers are not responsible for financial losses, misconfiguration, or downtime.