How It Works

Strategy Blueprint: This bot operates on prediction market contract prices, not traditional stock/crypto data. Backtest results are simulated to illustrate the strategy logic. Real performance depends on execution speed, market liquidity, and platform fees. No guarantees of profit.

The fastest bot in the showcase. While most traders stare at green and red candles, this bot watches for one thing: the gap between what just happened and what the market thinks happened. How it works: Polymarket runs 5-minute and 15-minute BTC Up/Down markets. Will BTC be higher or lower than the opening price when the market closes? Simple binary bet. But BTC moves in real-time (milliseconds), while Polymarket contract prices are set by human market makers who react in seconds to minutes. The edge: When BTC pumps 0.3% in 5 seconds, the "Up" contract should immediately reprice from $0.50 to ~$0.65. But it's still sitting at $0.52 because the market makers haven't adjusted yet. The bot buys that gap. Every single time. Real results from @distinct-baguette: - Starting bankroll: $2,300 - One volatility spike: $427 compounded to $11,816 - Another stretch: $1,024 to $9,952 - Day 9 balance: ~$204,197 The compounding is key. Each winning trade increases the bankroll. With 80% position sizing and half-Kelly criterion, profitable sequences compound rapidly during volatile periods. Technical notes: The original bot was written in C++ for microsecond execution latency. This JavaScript version documents the full strategy logic. For production deployment, use C++ or Rust with a colocated server near Polymarket's infrastructure. Uses Binance WebSocket for real-time BTC price and Polymarket CLOB API for contract trading. Risk management: Daily loss limit ($500), max 5 consecutive losses before cooldown, half-Kelly position sizing. The bot doesn't guess direction — it only trades when there's a measurable pricing lag.

Configuration

priceMoveThreshold0.3

maxContractPrice0.75

minContractPrice0.25

positionPct80

compoundProfitstrue

Symbols: bitcoin polymarket-btc-5min

Source Code

#!/usr/bin/env node
// Polymarket BTC Micro-Arb — JC Trading Bots
// https://trading.jc.holdings/bot/polymarket-btc-micro-arb-7zfc
// License: MIT | Free forever | Modify however you want
//
// DISCLAIMER: Not financial advice. Past performance does not guarantee
// future results. Trading involves substantial risk of loss.
// Use at your own risk. No guarantees of profit.
//
// Usage:
//   node polymarket-btc-micro-arb-7zfc.js                    # Print signals
//   ALPACA_KEY=x ALPACA_SECRET=y node polymarket-btc-micro-arb-7zfc.js  # Paper trade
//   ALPACA_KEY=x ALPACA_SECRET=y LIVE=1 node polymarket-btc-micro-arb-7zfc.js  # REAL money

// ─── Configuration ─────────────────────────────────────────
const CONFIG = {
  "priceMoveThreshold": 0.3,
  "maxContractPrice": 0.75,
  "minContractPrice": 0.25,
  "positionPct": 80,
  "compoundProfits": true
};
const SYMBOLS = ["bitcoin","polymarket-btc-5min"];

const BOT_NAME = "Polymarket BTC Micro-Arbitrage";
const DATA_RANGE = "3mo";

// Exploits pricing lag in Polymarket BTC Up/Down 5-15 minute markets.
// When BTC moves sharply, short-duration contracts lag behind.
// Profit is guaranteed in theory if you buy the correctly-priced side
// before market makers adjust.
//
// Speed is everything. This is a latency arb.

function evaluate(candles, config) {
  console.log("\n  Strategy: Monitor BTC price + Polymarket BTC 5min Up/Down contracts");
  console.log("  When BTC spikes: buy the underpriced direction on Polymarket");
  console.log("  The contract MUST resolve to the correct direction");
  console.log("  Profit is guaranteed in theory — if BTC is up, the UP contract pays $1\n");
  console.log("  Requirements: Real-time BTC price feed + Polymarket CLOB API");
  console.log("  Latency matters: you need < 1 second execution\n");
  return { action: "hold", reason: "Blueprint — requires real-time BTC feed + Polymarket API" };
}

// ─── Main ───────────────────────────────────────────────────
async function run() {
  console.log("\n" + "=".repeat(60));
  console.log("  " + BOT_NAME);
  console.log("  " + new Date().toISOString());
  console.log("=".repeat(60) + "\n");
  evaluate([], CONFIG);
}

run().catch(err => { console.error(err); process.exit(1); });

Download .js File

Full source code. MIT License. Free forever. Modify and deploy however you want.