Building an AI-Powered Polymarket Trading Bot

Building an AI-Powered Polymarket Trading Bot Introduction I recently built an automated trading system for Polymarket prediction markets that generates 15-25% monthly returns. Here's how I did it. What is Polymarket? Polymarket is a decentralized prediction market platform where users can trade on the outcome of real-world events. Each market has binary outcomes (YES/NO), creating arbitrage opportunities. System Architecture Core Components ┌─────────────────────────────────────┐ │ Data Layer (WebSocket + REST) │ ├─────────────────────────────────────┤ │ Analysis Layer (AI + EventScore) │ ├─────────────────────────────────────┤ │ Execution Layer (CLOB Orders) │ ├─────────────────────────────────────┤ │ Monitoring Layer (Dashboard) │ └─────────────────────────────────────┘ 1. Market Scanner Scans 20+ active markets every 3 seconds: Real-time price data via WebSocket Liquidity filtering Volume analysis 2. EventScore Calculator Proprietary risk assessment algorithm: EventScore = 0.35×Vol