In February 2026, Polymarket remains one of the most active decentralized prediction platforms on Polygon, with high-volume markets on crypto events, politics, sports, and more. Manually trading these is slow and error-prone — especially when edges last seconds.
I built Polymarket Trading Bot to automate this: real-time WebSocket monitoring of up to 1,500 markets, fast async execution, arbitrage detection, directional momentum strategies, and production-grade extras like a web dashboard and notifications.
It's fully open-source under MIT license. Grab it here:
https://github.com/VectorPulser/polymarket-trading-bot
(If you find it useful, a star or fork goes a long way! Contributions welcome.)
Core Architecture & Why These Choices
Async everything — Built with asyncio, aiohttp, and py-clob-client for low-latency order placement.
WebSocket feeds — 6 parallel connections to Polymarket's official streams → sub-second price updates without polling.
Gasless trading — Leverages Polymarket's relayer (no direct gas from your wallet after approval).
Modular strategies — Easy to extend or swap (arbitrage vs. momentum).
Proxy support — SOCKS5 for geo-bypass (common for restricted regions).
Dashboard — Simple HTTPS server with basic auth showing live P&L and orders.
Key Features
Arbitrage detection — Scans for YES + NO < $1.00 → risk-free profit after resolution.
Hybrid momentum/mean-reversion — Identifies undervalued sides, executes size to influence price (speculative), then fades overreactions.
Filters — Min liquidity ($10k+), resolution window, min profit threshold.
Safety — 10s order timeouts, auto-cancel stale orders, dry-run mode.
Notifications — Slack on every fill.
Dashboard — Real-time view (run with --dashboard).
Setup in ~10 Minutes (Production-Ready)
Prerequisites: Python 3.10+, Polygon RPC (e.g., Alchemy/Infura), USDC on Polygon.
Bash# Clone the repo
git clone https://github.com/VectorPulser/polymarket-trading-bot.git
cd polymarket-trading-bot
Install (editable mode for easy dev)
pip install -e .
Copy config
cp .env.example .env
Edit .env: PRIVATE_KEY, WALLET_ADDRESS, POLYGON_RPC_URL, etc.
Optional: SOCKS5_PROXY, SLACK_WEBHOOK_URL, DASHBOARD_USER/PASS
One-time API credentials (Polymarket CLOB):
Python# Run this script (or inline in terminal)
from py_clob_client.client import ClobClient
import os
client = ClobClient(
host="https://clob.polymarket.com",
key=os.getenv("PRIVATE_KEY"),
chain_id=137 # Polygon
)
creds = client.create_or_derive_api_creds()
print("Add to .env:")
print(f"POLY_API_KEY={creds.api_key}")
print(f"POLY_API_SECRET={creds.api_secret}")
print(f"POLY_API_PASSPHRASE={creds.api_passphrase}")
Approve USDC spending (one-time, costs gas):
Bashpython scripts/approve_usdc.py
Run dry (test mode — no real trades):
Bashrarb run --dry-run --realtime
Go live:
Bashrarb run --live --realtime --dashboard
Open http://localhost:8080 (or your host) in browser
Full config options (YAML or env): min_profit_pct, max_position_usd, proxy, etc. — see config.example.yaml.
Strategy Examples
Pure Arbitrage (risk-free):
YES priced at 0.48 + NO at 0.49 → total 0.97
Buy both → guaranteed $1 at resolution → ~3% ROI (minus fees)
Hybrid Momentum (directional):
Detect undervalued YES at 0.60 (opposite 0.40)
Aggressive buy to push toward fair value
Fade retail FOMO → capture reversion
Requires conviction; size small and backtest
These are configurable via strategy modules — fork and add your own (e.g., 15-min BTC momentum, copy-trading).
Important Warnings
Risk disclaimer: Prediction markets are volatile. Use dry-run first. Never risk funds you can't lose.
Geo restrictions: Polymarket restricts U.S. trading IPs. Proxy responsibly and check local laws.
Not financial advice: This is open-source tooling. Audit and test thoroughly.
Rate limits & costs: Respect Polymarket APIs; small Polygon gas for approvals.
Roadmap & How to Contribute
Planned:
Built-in backtester
More strategies (e.g., event-news triggered)
Telegram/Discord alerts
Multi-account support
PRs, issues, or strategy ideas? Open them on GitHub:
https://github.com/VectorPulser/polymarket-trading-bot
Contact info:
Telegram : https://t.me/BenjaminCup
X: https://x.com/benjaminccup
If you're building in prediction markets, Web3 automation, or quant trading — this could be a solid base. Fork it, extend it, make it yours.
Happy coding and trading in 2026! 📊
Top comments (0)