Polymarket Arbitrage Trading Bot (TypeScript)

A Polymarket Trading bot that trades on Polymarket binary crypto markets (e.g. “Bitcoin up or down in the next 15 minutes”). It connects to Polymarket’s CLOB and real-time data, subscribes to a market by coin and period, and can run configurable strategies.

What kind of bot is this?

Not classic arbitrage. The codebase supports two styles of logic:

1. Trend-following (trade_1 in decision.ts)
   Detects short-term “trend” from order-book price changes and would buy the UP or DOWN token when the market is trending that way, within a configurable price range. This is directional trading, not arbitrage.

2. Binary “arbitrage” (trade_1 in ws_clob.ts)
   When real-time price velocity exceeds a threshold, it computes prices such that UP + DOWN < 1 − min_arb_price_difference, and would buy both UP and DOWN to lock in a margin. That’s binary market arbitrage (buying both sides when they’re cheap relative to $1).

Current state: Order placement for both strategies is commented out. The bot runs as a framework: it connects, subscribes to markets and RTDS, updates prices, and logs signals; it does not send live orders unless you uncomment and enable the trade calls.

Features

• Market selection: Coin (btc, eth, sol, xrp) and period (15, 60, 240, 1440 minutes).
• Live data: CLOB WebSocket (order book) and RTDS (e.g. BTCUSDT / Chainlink) for price velocity.
• Strategies: trade_1 (time/price exit), trade_2 (entry/exit ranges + optional emergency swap).
• Config: TOML config (trade.toml) for strategy, market, trading range, thresholds, simulation.
• Simulation: Optional simulation = true to skip sending orders.

Change the market(trade.toml)

You can change crypto market ** [market] market_coin = "btc" # btc / eth / sol / xrp market_period = "5" # 5 / 15 / 60 / 240 / 1440 **

Strategy logic (decision.ts)

trade_1 — Time / price exit

• Goal: Hold a position (UP or DOWN) and exit when either time or price threshold is reached.
• Exit: If remaining time ratio (elapsed time / market duration) > trade_1.exit_time_ratio or up-price ratio (distance of UP bid from 0.5) > trade_1.exit_price_ratio, the bot sells the currently held token:
  • Holding UP → sellUpToken()
  • Holding DOWN → sellDownToken()
• Config ([trade_1] in trade.toml): exit_time_ratio, exit_price_ratio, plus entry_price_range, swap_price_range, take_profit, stop_loss for future entry/risk logic.

trade_2 — Entry/exit ranges + emergency swap

• Goal: Enter when price and time are in range; exit when price is in an exit band; optionally flip to the opposite side in an “emergency” price band.
• Entry (when not holding): If remaining_time_ratio > trade_2.entry_time_ratio and up-price ratio is inside trade_2.entry_price_ratio [min, max], buy the cheaper side (UP if upBuyPrice > downBuyPrice, else DOWN).
• Exit: If up-price ratio falls inside any of the trade_2.exit_price_ratio_range intervals:
  • Holding UP → sellUpToken(); if sell succeeds and up-price ratio is in trade_2.emergency_swap_price, then buyDownToken().
  • Holding DOWN → sellDownToken(); if sell succeeds and up-price ratio is in trade_2.emergency_swap_price, then buyUpToken().
• Config ([trade_2]): entry_price_ratio, entry_time_ratio, exit_price_ratio_range, emergency_swap_price (optional).

trade_3 — Arbitrage Strategy ( Private )

Requirements

• Node.js ≥ 20.6.0
• Wallet: Polymarket proxy wallet and signer (private key) for the CLOB.

Setup

1. Clone and install

   Ubuntu

   git clone https://github.com/Py-Contributors/polymarket-trading-bot
   cd polymarket-trading-bot
   
   npm install

2. Environment

   Create a .env in the project root (see .gitignore; do not commit secrets):

   • POLYMARKET_PRIVATE_KEY – EOA private key that signs for the proxy wallet.
   • PROXY_WALLET_ADDRESS – Proxy wallet address used with Polymarket CLOB.

3. Config

   Edit trade.toml:

   • strategy: "trade_1" or "trade_2".
   • trade_usd, max_retries, simulation.
   • [market]: market_coin, market_period.
   • [trade_1]: trading_range, price_change_threshold, min_arb_price_difference, etc.

Scripts

Command	Description
npm run dev	Run bot: tsx src/index.ts
npm run log	Run and log stdout/stderr to log.txt
npm run check	Run inspector: tsx src/inspect.ts
npm run build	Compile: tsc
npm start	Run compiled: node dist/index.js

Project layout

• src/index.ts – Entry: load config, create CLOB client, resolve market slug, connect WebSockets, instantiate Trade, main loop.
• src/config/ – Env, TOML config, market/slug helpers.
• src/services/ – CLOB client, Gamma API, WebSockets (CLOB + RTDS).
• src/trade/ – Trade class: decision logic, prices/trending, order placement (buy/sell UP/DOWN).
• trade.toml – Strategy and market configuration.

Contact

t.me/@mshrieve