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Emil Nielsen
Emil Nielsen

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Building Visual Trading Strategies for Prediction Markets with Raven

Prediction markets are becoming increasingly popular as traders look for new ways to express market views beyond traditional financial instruments. While many traders rely on custom scripts and coding expertise, a new approach is emerging: visual strategy builders.

In a recent development update, Raven showcased an MVP focused on making prediction market automation more accessible through a visual node-based strategy builder.

Why Visual Strategy Builders Matter

Most automated trading systems require users to write code, manage APIs, and handle deployment. This creates a significant barrier for traders who have strong market knowledge but limited programming experience.

Raven takes a different approach by allowing users to create strategies using drag-and-drop nodes. Instead of writing hundreds of lines of code, traders can connect data sources, signals, conditions, and actions visually.

The goal is rapid experimentation and strategy iteration without needing to become a software engineer.

Current Data Sources

The current version supports:

  • Venue selection
  • Market selection
  • Dynamic market filtering
  • Polymarket integration

The architecture is designed to support additional prediction market venues in the future, opening possibilities such as cross-venue arbitrage strategies.

For example, users can select specific markets like Bitcoin price prediction markets or define broader criteria that automatically discover matching markets.

Trading Signals Available

Raven currently exposes several categories of signals.

Order Book Signals

Users can access:

  • Best Bid
  • Best Ask
  • Mid Price
  • Spread

These values update in real-time using Polymarket WebSocket data.

Candlestick Data

Strategies can use:

  • Open
  • High
  • Low
  • Close
  • Volume

Across multiple timeframes:

  • 1 minute
  • 5 minutes
  • 15 minutes
  • 30 minutes
  • 1 hour
  • 4 hours
  • 1 day

This enables traders to build familiar technical-analysis-based strategies inside prediction markets.

Moving Averages

The platform currently includes:

  • EMA (Exponential Moving Average)
  • SMA (Simple Moving Average)
  • VWAP (Volume Weighted Average Price)

These indicators allow users to implement trend-following and mean-reversion systems visually.

Creating Strategy Logic

The real power comes from combining signals with conditions.

Threshold Conditions

Example:

  • Buy when the best ask is greater than 0.70
  • Sell when the spread exceeds a specific value

Signal Comparisons

Users can compare:

  • Order book signals
  • Candlestick values
  • Moving averages

and generate true/false outputs that drive trading decisions.

Formula Nodes

Formula nodes allow traders to create custom expressions by mapping multiple signals into variables.

Example:

(Ask Price + Open Price) < 0.99
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This makes it possible to create sophisticated decision rules without writing code.

Code Nodes

For advanced users, code nodes provide additional flexibility and can return:

  • Boolean values
  • Numeric values

These outputs can be chained into other conditions and strategy components.

Combining Conditions

Raven supports logical operations such as:

AND

Require multiple conditions to be true before executing a trade.

Example:

  • Ask price above threshold
  • Moving average crossover confirmed

OR

Execute when any qualifying condition becomes true.

This allows traders to create layered decision trees visually.

Trade Execution

Once conditions are met, users can trigger actions.

Supported actions include:

Buy Orders

Options include:

  • Market orders
  • Limit orders
  • Best Bid pricing
  • Best Ask pricing
  • Midpoint pricing
  • Custom price offsets

Sell Orders

Similar flexibility is available for exits and profit-taking.

Position Sizing

Strategies can specify:

  • Fixed amounts
  • Percentage of capital
  • Dynamic sizing rules

Lifecycle Automation

One particularly interesting feature is lifecycle hooks.

A strategy can react to events such as:

  • Order filled
  • Order cancelled
  • Order rejected
  • Order timeout

For example:

  1. Buy position
  2. Wait for fill
  3. Automatically place a profit-taking sell order

This enables fully automated trade management without manual intervention.

Repeatable Strategy Flows

The repeat node allows a strategy to restart after a position closes or after specific lifecycle events occur.

This is useful for continuously scanning markets and re-entering when new opportunities appear.

Inspiration from Existing Polymarket Trading Bots

If you're interested in building automated prediction market strategies today, a great open-source resource is:

Polymarket Trading BTC ETH M Bot:
https://github.com/nahuelvivas/Polymarket-Trading-BTC-ETH-M-Bot

The repository demonstrates how automated trading systems can interact with Polymarket markets and provides valuable insights for traders exploring prediction market automation.

Raven aims to bring many of these capabilities into a visual environment where strategies can be built without extensive coding.

The Future of Prediction Market Automation

Prediction markets are still in their early stages compared to traditional financial markets. As liquidity and participation continue to grow, tools that simplify automation could significantly expand adoption.

Visual strategy builders lower the barrier to entry and allow traders to focus on ideas rather than infrastructure.

Features such as:

  • Real-time order book analysis
  • Technical indicators
  • Automated execution
  • Lifecycle management
  • Multi-market support

could make prediction market trading more accessible than ever.

Watch the Full Demo

You can watch the original walkthrough here:

https://www.youtube.com/watch?v=4smiJ_YAev8

Follow for More Content

For more updates on prediction markets, trading automation, algorithmic strategies, and Raven development, check out my YouTube channel:

https://www.youtube.com/channel/UCY8IodKR5XCx3yJNGRZi0Sg


What do you think is the most important feature for a visual trading strategy builder? Let me know in the comments.

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