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Benjamin-Cup
Benjamin-Cup

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Polymarket Trading Bot : Real-Time Arbitrage, Momentum Strategies, and Production Features (Open Source)

Polymarket Trading Bot: Automated Polymarket Trading Strategies for Crypto Prediction Markets

In February 2026, Polymarket continues to be one of the most active crypto prediction markets, running on the Polygon blockchain network.

Thousands of traders use Polymarket trading to speculate on:

  • Crypto price movements
  • Political outcomes
  • Global events
  • Sports results

However, manual Polymarket trading is slow. Opportunities in prediction markets can appear and disappear in seconds.

To solve this, I built a high-performance Polymarket trading bot designed to automatically monitor markets, detect profitable opportunities, and execute trades in real time.

The project is fully open source and designed for crypto traders, developers, and quantitative strategy builders.


Polymarket Trading Bot (Open Source)

I created a Polymarket trading bot in Python that automates prediction market strategies using real-time market data.

The bot continuously scans up to Polymarket crypto markets simultaneously and executes trades based on configurable trading strategies.

The project is open source under the MIT license.

GitHub Repository

https://github.com/Gabagool2-2/polymarket-trading-bot-python

If the project helps you, a star ⭐ or fork greatly helps the project grow.


Why Use a Polymarket Trading Bot?

Automated Polymarket trading bots give traders a significant advantage over manual trading.

Key benefits include:

1. Real-Time Market Monitoring

The bot tracks 1,500+ prediction markets through WebSocket streams and detects opportunities instantly.

2. Faster Trade Execution

Automated execution allows trades to occur in milliseconds — critical for crypto trading strategies where pricing inefficiencies disappear quickly.

3. Strategy Automation

Instead of manually analyzing markets, the bot executes algorithmic Polymarket trading strategies automatically.

4. Arbitrage Opportunities

The bot identifies price mismatches between YES and NO tokens in Polymarket markets.

5. Data-Driven Trading

All decisions are based on quantitative trading logic, not emotion.


Polymarket Trading Bot Architecture

This Polymarket bot is built for low-latency crypto trading automation.

Async Architecture

The system uses:

  • Python asyncio
  • aiohttp
  • Polymarket's py-clob-client

This allows fast concurrent execution across hundreds of markets.

WebSocket Data Feeds

The bot runs 6 parallel WebSocket connections to Polymarket data streams.

This enables:

  • Sub-second market updates
  • Real-time order book monitoring
  • Instant trade signals

Gasless Trading

Polymarket uses a relayer system, allowing trades without direct gas payments after token approval.

Modular Strategy System

Trading strategies are separated into modules, allowing developers to easily add:

  • Arbitrage strategies
  • Momentum trading strategies
  • Market-making strategies
  • Custom crypto strategies

Integrated Dashboard

The bot includes a built-in web dashboard displaying:

  • Active trades
  • Positions
  • Profit & loss
  • Strategy performance

Key Features of the Polymarket Trading Bot

Automated Arbitrage Detection

The bot detects when:

YES price + NO price < $1

Example:

YES = $0.48
NO = $0.49

Total = $0.97

Buying both sides results in guaranteed $1 payout after market resolution.

This creates a risk-free arbitrage opportunity.


Hybrid Momentum Trading Strategy

The bot also implements a momentum + mean-reversion strategy.

Example workflow:

  1. Detect undervalued side (YES or NO)
  2. Execute aggressive buy orders
  3. Push price toward fair value
  4. Capture profit when retail traders react

This strategy works well in high-liquidity Polymarket crypto markets.


Market Filters

The bot only trades markets that meet specific criteria:

  • Minimum liquidity: $10,000+
  • Minimum profit threshold
  • Valid resolution timeframe

This reduces exposure to low-volume markets.


Built-In Safety Features

The bot includes safeguards to prevent unwanted trades.

Safety systems include:

  • 10-second order timeout
  • Automatic cancellation of stale orders
  • Dry-run simulation mode
  • Position limits

Real-Time Notifications

The bot sends Slack notifications for:

  • Trade execution
  • Order fills
  • Strategy triggers

How to Run the Polymarket Trading Bot

Setup takes about 10 minutes.

Requirements

  • Python 3.10+
  • Polygon RPC (Alchemy / Infura)
  • USDC on Polygon

Install the Bot

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

cd polymarket-trading-bot

# Install dependencies
pip install -e .
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Configure Environment

cp .env.example .env
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Add:

  • PRIVATE_KEY
  • WALLET_ADDRESS
  • POLYGON_RPC_URL

Optional:

  • SOCKS5 proxy
  • Slack webhook
  • Dashboard authentication

Generate Polymarket API Credentials

from py_clob_client.client import ClobClient
import os

client = ClobClient(
    host="https://clob.polymarket.com",
    key=os.getenv("PRIVATE_KEY"),
    chain_id=137
)

creds = client.create_or_derive_api_creds()
print(creds)
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Add these credentials to .env.


Approve USDC Spending

python scripts/approve_usdc.py
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This requires a small Polygon gas fee.


Run the Bot in Test Mode

rarb run --dry-run --realtime
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No real trades will be executed.


Run the Bot Live

rarb run --live --realtime --dashboard
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Dashboard:

http://localhost:8080
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Example Polymarket Trading Strategies

Strategy 1 — Pure Arbitrage

YES = 0.48
NO = 0.49

Total cost = 0.97

Final payout = 1.00

Profit ≈ 3% ROI


Strategy 2 — Momentum Trading

Example:

YES price = 0.60
NO price = 0.40

Strategy:

  1. Buy undervalued side
  2. Trigger momentum
  3. Sell when price overshoots

This works well when retail traders follow price movements.


Risks of Polymarket Trading

Prediction markets can be profitable but also risky.

Important considerations:

  • Markets may move quickly
  • Liquidity can disappear
  • Some regions restrict access to Polymarket

Always test with dry-run mode first.


Future Development Roadmap

Planned improvements include:

  • Built-in backtesting engine
  • Event-driven strategies
  • Telegram alerts
  • Discord notifications
  • Multi-wallet support

Try the Polymarket Trading Bot

You can also test a Telegram demo version of the bot.

Telegram Bot

https://t.me/benjamincup_polymarket_bot


Video Demo

https://www.youtube.com/watch?v=4cklMPZs0y8


Contributing

Contributions are welcome.

Submit ideas, pull requests, or issues on GitHub.

https://github.com/Gabagool2-2/polymarket-trading-bot-python


Continuous Updates & Development

This Polymarket trading bot is actively maintained and continuously updated to adapt to new Polymarket trading opportunities, crypto market conditions, and strategy improvements.

New features, optimizations, and trading strategy enhancements are released regularly to improve performance, stability, and profitability.

If you're interested in:

Polymarket trading automation

crypto trading strategies

prediction market bots

or contributing to the project

feel free to stay in touch.

If you'd like to see the system in action, I can arrange a live Google Meeting demonstration to showcase the bot running in real time and explain how the trading strategies operate.

I'm always happy to connect with developers, traders, and researchers working in the Polymarket and crypto ecosystem.


Contact

Email
benjamin.bigdev@gmail.com

Telegram
https://t.me/BenjaminCup

X
https://x.com/benjaminccup


If you're building in:

  • Polymarket trading
  • Crypto automation
  • Prediction market strategies
  • Algorithmic trading bots

this project can be a strong foundation.

Happy trading and coding in 2026 🚀📊

polymarket #polymarket-trading-bot #trading #bot


Top comments (16)

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tom_phillips_c3c17afe434f profile image
Tom Phillips

Very impressive work!

Are you planning to add backtesting for Polymarket trading strategies in future updates? That could make this one of the most complete Polymarket trading bot frameworks available.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

Thanks for your interesting, you can check and refer my new posts for the polymarket trading Strategy. Please give me good feedback.

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milan_saar_0fbc57fb97f39a profile image
Milan Saar • Edited

Really interesting project. Automated Polymarket trading bots are becoming essential because manual trading simply can’t compete with real-time opportunity detection.
Especially, i am very glad to test with telegram bot . i am happy and confident about that test result with profit.
Plz keep in touch.
And I wish you continued success with the development of the project.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

Thank you for your kind words! I’m glad to hear you had a positive experience testing the Telegram bot and that it was profitable.
Please feel free to check out my latest posts on Polymarket trading strategies, and I’d really appreciate any feedback you have.
Looking forward to keeping in touch and sharing more updates as the project develops.

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milan_narkovic_9523a34410 profile image
Milan Narkovic

This is a great analysis of the system. Using an asynchronous architecture to run multiple WebSocket connections is a robust approach for low-latency monitoring across multiple markets. It would also be interesting to incorporate order book depth or liquidity filters to further refine arbitrage detection and prevent slippage in illiquid markets. I always appreciate your feedback and experience with Polymarket. Thank you for sharing.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

Thanks again.I hope you give me good feedback like this.

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nightfury_e56b11bd7fb0e46 profile image
Nightfury

Hello thank you for your publish
I am going to ask a question
If this is profitable really, you can share video that shows proof of work.
that will be big
I hope to see that video.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

If you don't mind, i hope to discuss in telegram.
My Telegram id is @BenjaminCup.
Let's connect.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

This trading bot is complete, live, and profitable.
I’d love thoughtful feedback from other builders—on architecture, strategy assumptions, or edge sustainability. Happy to exchange notes and learn from different perspectives.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

Love seeing more open-source tools around Polymarket trading. The architecture and strategy modularity make this a great starting point for quant developers.

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tom_phillips_c3c17afe434f profile image
Tom Phillips

This is one of the most well-structured Polymarket trading bot implementations I’ve seen so far. The async architecture, WebSocket market scanning, and automated arbitrage detection make it very powerful for real-time Polymarket trading strategies.

Open-source tools like this can really help developers experiment with prediction market automation and build new quantitative trading strategies. Great work!

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rutabet profile image
rutabet

First, you entrust your private keys to an obscure developer, and then you wonder where all my money is.?? The developer of Benjamin-cup has a completely different address on github and there is no bot aka gabagool in his repository)))) All you will get is a drainer who will take all your money. Remember once and for all - free cheese is only in a mousetrap.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

This is just for education purpose. you can get some code structure and template for the development bot.
The profitable bot version is private.
Thanks for your looking around.

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jesus_urielvaldez_6d2622 profile image
Jesus

This is awesome. Prediction markets are still under-explored in algorithmic trading, and tools like this make it much easier for developers to experiment. Thanks for open-sourcing it.

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benjamin_martin_749c1d57f profile image
Benjamin-Cup

Thanks! The bot is still evolving and I'm continuously improving the strategies and execution layer. Happy to hear feedback from other developers.

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