money-takers/polymarket-arbitrage-trading-bot

This is an automated trading bot for Polymarket's fifteen minute cryptocurrency Up or Down prediction markets, covering assets like Bitcoin, Ethereum, Solana, and XRP. On these markets you bet on whether a price will be higher or lower at the end of a fifteen minute window, and this bot automates a specific strategy the project calls dump and hedge. The strategy works like this: during the first few minutes of each market period, the bot watches for a sharp, sudden price drop on one side of the bet, called the dump. When it spots one, it buys that discounted side cheaply, referred to as Leg 1. It then tracks the combined cost of both outcome tokens together. Because a binary market always pays out exactly one dollar total between the two sides, buying both for less than a dollar locks in a guaranteed profit. Once the combined price falls to a target threshold you configure, for example ninety five cents, the bot buys the opposite side, called Leg 2 or the hedge, locking in the difference as profit. If that hedge opportunity never arrives before a time limit you set, the bot hedges anyway at a worse price simply to limit losses. By default the bot runs in simulation mode and places no real orders, so you can watch it work before risking money. Switching to live trading is a single environment variable change. Configuration options cover position sizing, how sensitive the dump detection is, timing windows for each phase, and stop loss parameters, all stored in a .env file. The bot talks to Polymarket through its Gamma API for market discovery and its CLOB API for placing orders. Running it for real requires a funded Polymarket wallet holding USDC. The project is released under the Apache 2.0 license. The full README is longer than what was shown.