
Polymarket trading bot : Mountain of Dual-side arbitrage small profit
I recently built an automated volatility / probability arbitrage bot for prediction markets, and the results have been fascinating. Instead of trying to guess the winner , the bot focuses on market inefficiencies . Prediction markets often move extremely fast — especially short-duration crypto markets — and small pricing imbalances appear constantly. The idea is simple: detect those mispricings faster than humans and capture small edges repeatedly. Here are a few of the core strategies the bot uses: 1️⃣ Dual-side arbitrage (YES + NO < $1) Sometimes when a new market opens — especially short 5-minute markets — liquidity is thin and prices drift apart. Example: YES = $0.48 NO = $0.47 Total = $0.95 Since one side must resolve to $1 , buying both creates a locked $0.05 profit per set . The bot continuously scans markets and places maker limit orders to capture these situations. Individually the edge is small, but with hundreds or thousands of trades per day , the compounding effect becomes
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