Polymarket Bot | Polymarket Trading Bot | Polymarket Arbitrage Bot

Polymarket Bot, Polymarket Trading Bot, Polymarket Arbitrage Bot, Polymarket Automatic Trading Bot

A high-performance, automated trading system for Polymarket prediction markets. Built in Python with real-time WebSocket streaming, gasless L2 execution, and a risk-management framework suited to short-term and high-frequency environments.

Contact

Channel	Link
Email	benjamin.bigdev@gmail.com
Telegram	@BenjaminCup
X (Twitter)	@benjaminccup

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Status: Live trading supported. Optional web dashboard available at configured domain.

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Features

• Real-time WebSocket monitoring — 6 parallel connections, up to 1,500 markets
• Automatic arbitrage detection and execution — Buy YES + NO when combined cost < $1.00
• Low-latency execution — Async HTTP/2, parallel order signing, 10s timeout with auto-cancel
• Risk management — Position sizing (risk-per-trade %), circuit breakers (consecutive losses, session/daily/monthly drawdown), pre-trade filters (time to resolution, optional volatility/volume/z-score/RSI)
• Market filters — Liquidity ($10k+ default), resolution horizon (7 days default), min seconds to resolution
• Web dashboard — Live order visibility over HTTPS with optional auth
• Notifications — Slack (and optional Telegram) for trades and alerts
• Geo bypass — SOCKS5 proxy support for order placement from non–US regions

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Strategy

Pure arbitrage (this bot)

When the best ask for YES and the best ask for NO sum to less than $1.00, buying both locks in profit: one side always pays $1.00 at resolution.

Example	YES ask	NO ask	Combined	Payout	Profit
Arbitrage	$0.48	$0.49	$0.97	$1.00	~3.09%

The bot scans order books in real time, sizes positions by risk, applies circuit breakers and filters, and executes when the combined cost is below your configured threshold (e.g. 0.5%).

Other strategies (reference only)

Directional or momentum strategies (e.g. moving the book then buying the cheap side) are not implemented in this repo. For discussion of those approaches, see the Medium article.

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Risk management

The bot includes a configurable risk framework aimed at short-term / 5-minute-style markets:

• Position sizing — Max risk per trade as % of balance (e.g. 0.5–1.5%), stop-based distance, cap as % of account (e.g. 25%).
• Circuit breakers — Pause after N consecutive losses; pause or stop when session/daily/monthly drawdown limits are hit; optional volatility kill (skip entries when 1-min std dev exceeds a threshold).
• Pre-trade filters — Min seconds until resolution (e.g. 90s), optional min 60s volume, z-score, and RSI filters.

See .env.example for all risk-related variables (RISK_PER_TRADE_PCT, STOP_LOSS_PCT, CONSECUTIVE_LOSSES_PAUSE, SESSION_DRAWDOWN_PCT, DAILY_DRAWDOWN_PCT, MIN_SECONDS_UNTIL_RESOLUTION, etc.). Tune after backtesting; default values are conservative starting points.

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Setup

# Clone
git clone https://github.com/Gabagool2-2/polymarket-trading-bot-python.git
cd polymarket-trading-bot-python

# Install
pip install -e .

# Configure
cp .env.example .env
# Edit .env with your wallet, API credentials, and risk/strategy parameters

# Generate Polymarket L2 API credentials
python -c "
from py_clob_client.client import ClobClient
import os
client = ClobClient('https://clob.polymarket.com', key=os.environ['PRIVATE_KEY'], chain_id=137)
creds = client.create_or_derive_api_creds()
print(f'POLY_API_KEY={creds.api_key}')
print(f'POLY_API_SECRET={creds.api_secret}')
print(f'POLY_API_PASSPHRASE={creds.api_passphrase}')
"

# One-time: approve Polymarket contracts for USDC
python scripts/approve_usdc.py

# Run (realtime WebSocket mode)
rarb run --live --realtime

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Configuration

Required

Variable	Description
PRIVATE_KEY	Wallet private key (hex, 0x prefix)
WALLET_ADDRESS	Wallet address
POLY_API_KEY / POLY_API_SECRET / POLY_API_PASSPHRASE	L2 API credentials (from script above)

Trading

Variable	Default	Description
MIN_PROFIT_THRESHOLD	0.005	Min profit (0.5%) to trigger execution
MAX_POSITION_SIZE	100	Max USD per trade
MIN_LIQUIDITY_USD	10000	Min market liquidity
MAX_DAYS_UNTIL_RESOLUTION	7	Skip markets resolving later
NUM_WS_CONNECTIONS	6	WebSocket connections
DRY_RUN	true	Set false for live trading

Risk (see .env.example for full list)
RISK_PER_TRADE_PCT, STOP_LOSS_PCT, TIME_STOP_SECONDS, POSITION_CAP_PCT, CONSECUTIVE_LOSSES_PAUSE, SESSION_DRAWDOWN_PCT, DAILY_DRAWDOWN_PCT, MIN_SECONDS_UNTIL_RESOLUTION, etc.

Optional
Dashboard (DASHBOARD_USERNAME, DASHBOARD_PASSWORD), Slack/Telegram, SOCKS5 proxy (see Geo-Restrictions below).

Full reference: .env.example.

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Contract approvals

Before trading, approve Polymarket contracts to spend your USDC.e:

python scripts/approve_usdc.py

This approves CTF Exchange, Neg Risk Exchange, Conditional Tokens, and Neg Risk Adapter.

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Geo-restrictions

Polymarket restricts order placement from certain jurisdictions (e.g. US IPs). A common setup:

• Bot / scanner: Low-latency server (e.g. US) for WebSocket market data.
• Orders: Routed through a SOCKS5 proxy in an allowed region (e.g. Canada).

Configure in .env:

SOCKS5_PROXY_HOST=your-proxy-host
SOCKS5_PROXY_PORT=1080
SOCKS5_PROXY_USER=rarb
SOCKS5_PROXY_PASS=your-password

Deployment examples (OpenTofu + Ansible): infra/.

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Documentation

• PRD.md — Product requirements and technical architecture.
• Risk logic — src/rarb/risk/manager.py (position sizing, circuit breakers, pre-trade filters).

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License

MIT