Developer Builds Inventory-Balanced Trading Bot for Prediction Market Polymarket
A software developer has shared how they built an automated trading strategy for Polymarket, a prediction market platform where users trade on event outcomes like YES or NO. Rather than focusing solely on when to buy or sell, the strategy emphasizes post-trade management, including inventory control, hedging, and order lifecycle. The bot detects price trend reversals and executes trades in small cycles — for example, splitting a 100-share position across five cycles of 20 shares each — to reduce market impact. Protective rules automatically trigger aggressive position closures when hedges fail, markets near settlement, or orders remain unfilled beyond set time limits. The developer concludes that a trading signal alone is insufficient, and that a robust automated system must also handle execution, inventory balancing, and risk control.
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