Polymarket Automated Trading Bot

Polymarket Automated Trading Bot (Market Making + Statistical Arbitrage)

Overview

I am seeking a highly experienced trading bot developer to build a production-grade automated trading system for Polymarket (Polygon network).

The bot will combine continuous market-making with statistical/arbitrage logic to exploit pricing inefficiencies—particularly in short-dated crypto prediction markets (e.g. BTC 15-minute Up/Down).

This is not a liquidity-only bot.
The objective is sustained profitability with disciplined risk management.


Trading Logic
-Maintain two-sided quotes (Yes/No) on live Polymarket order books
-Dynamically adjust spreads and inventory skew in real time

Combine:
-Market-making (spread capture)
-Model-based probability estimation

Primary focus:
- Crypto Up/Down markets (ETH, SOL, XRP)

Pricing & Modeling
- Ingest real-time crypto price data

-Compute rolling short-term volatility
-Estimate fair binary probabilities based on:
Price, Volatility, Time-to-expiry

Execute trades only when a configurable edge threshold exists

Polymarket Integration (Required)
Read active markets and expiry metadata

Fetch real-time odds and order books
Submit, amend, and cancel orders programmatically
Polygon smart-contract interaction with gas-awareness
Risk Management (Mandatory)

The bot must never risk full balance.

Required controls:
-Max exposure per market
-Position sizing rules
-Inventory limits and rebalancing
-Max trades per minute
-Liquidity and spread validation
-Cooling-off logic
-Gas usage limits

Deliverables
-Production-ready bot (Python preferred for config, but fast C++ or rust executable binary is okay)
- Config system (file or lightweight UI)
- Paper-trading / demo mode
- Logging & monitoring & alerting (PnL, inventory, trades)

Clear README with deployment instructions

Acceptance Criteria
-Runs unattended for 48 hours
-Quotes at least 3 live markets

Quote updates within milliseconds
Net positive PnL after fees and gas

Ideal Candidate
- Proven experience with automated trading systems

Familiarity with:
- Prediction markets
- High frequency trading, option market making
- On-chain execution / Polygon
- Market-making and/or arbitrage
- Strong engineering discipline

Please include examples of previous trading bots or systems you’ve built.