Enhance Polymarket Trading Bot

I already have a functioning copy-trading bot connected to Polymarket, but it needs a stronger layer of risk management before I scale it any further. The first milestone is to implement better risk controls—specifically new position-sizing rules, tighter stop-loss mechanisms, and broader diversification logic across markets and traders.

For position sizing I do not want a simple fixed-percentage approach; instead, I need a framework where I can plug in my own custom formulas that react to both account performance and live market variables. I will share the current codebase (TypeScript + Node.js) and a detailed design document outlining the formulas and risk metrics I have in mind as soon as we start.

Key deliverables
• Refactor or extend the existing risk-management module to accept pluggable sizing formulas.
• Add configurable stop-loss logic that can be toggled per position or per market.
• Build diversification checks so the bot automatically limits exposure to correlated markets or to any single trader it is mirroring.
• Provide unit tests and a short README that shows how to adjust each rule and run the bot in paper-trading mode for verification.

Acceptance criteria
1. All new rules can be enabled/disabled through the current JSON config file without code edits.
2. A sample paper-trading session demonstrates that sizing, stops, and diversification limits trigger exactly as specified in the design doc.
3. Code passes linting and all provided tests.

Once this phase is solid, I’ll move on to automated trader selection, a full paper-trading sandbox, and finally a web dashboard for live stats—so I’m keen to keep working with someone who can grow with the project. Let me know your relevant experience and any clarifying questions, and I’ll send over the documentation right away.