dvcrn Polymarket Trading Skill
Trade prediction markets and profit from your knowledge directly from Clawdbot.
Overview
This skill helps you:
- Understand Polymarket mechanics
- Find profitable trading opportunities
- Analyze market odds and sentiment
- Track positions and P&L
- Build automated alerts and strategies
- Prepare for the upcoming POLY distribution
What is Polymarket?
Polymarket is a decentralized prediction market platform where you trade shares representing outcomes of real-world events. If your prediction is correct, shares pay out $1. If wrong, they're worth $0.
Example: "Will it rain tomorrow?"
YES shares trading at $0.65
NO shares trading at $0.35
If you buy YES at $0.65 and it rains:
- You receive $1.00
- Profit: $0.35 (54% return)
If it doesn't rain:
- Shares worth $0.00
- Loss: $0.65
Getting Started
1. Setup Account
1. Visit polymarket.com
2. Connect with email or Web3 login
3. Deposit USDC (Polygon network)
4. Start trading
2. Understanding Shares
Each market has YES and NO shares
- Prices always sum to ~$1.00
- Price = implied probability
- $0.70 YES = 70% chance according to market
You can:
- Buy YES (bet it happens)
- Buy NO (bet it doesn't)
- Sell anytime before resolution
Polymarket API
Base URL
https://clob.polymarket.com
https://gamma-api.polymarket.com
Get Active Markets
# List all active markets
curl -s "https://gamma-api.polymarket.com/markets?closed=false&limit=100" | jq '.[] | {question, slug, outcomePrices}'
Get Market Details
# Get specific market by slug
SLUG="will-trump-win-2024"
curl -s "https://gamma-api.polymarket.com/markets?slug=$SLUG" | jq '.[0]'
Get Market by Condition ID
CONDITION_ID="0x..."
curl -s "https://gamma-api.polymarket.com/markets?condition_id=$CONDITION_ID" | jq
Search Markets
# Search by keyword
curl -s "https://gamma-api.polymarket.com/markets?tag=politics&closed=false" | jq '.[] | {question, outcomePrices}'
Get Order Book
# CLOB API for order book data
MARKET_ID="your-market-id"
curl -s "https://clob.polymarket.com/book?market=$MARKET_ID" | jq
Get Trade History
# Recent trades for a market
curl -s "https://clob.polymarket.com/trades?market=$MARKET_ID&limit=50" | jq
Market Categories
🏛️ Politics
- Elections (US, global)
- Policy decisions
- Legislation outcomes
- Government actions
- Geopolitical events
⚽ Sports
- Game outcomes
- Championship winners
- Player performance
- Transfer rumors
- Season records
💼 Business
- Earnings reports
- Product launches
- M&A activity
- IPO timing
- Executive changes
🎬 Entertainment
- Award shows
- Box office performance
- TV ratings
- Celebrity events
- Streaming numbers
🌡️ Science & Weather
- Climate data
- Space missions
- Scientific discoveries
- Natural events
- Health/pandemic
📈 Economics
- Fed rate decisions
- Inflation data
- Employment numbers
- GDP reports
- Market indices
Trading Strategies
1. Information Edge
Strategy: Trade when you have better information than the market
Examples:
- Local knowledge (weather, events)
- Industry expertise
- Early access to data
- Research skills
Process:
1. Find market where you have edge
2. Assess if price reflects your info
3. Size position based on confidence
4. Monitor for new information
2. Arbitrage
Strategy: Exploit price discrepancies
Types:
- Cross-platform (Polymarket vs Kalshi)
- Related markets (correlated outcomes)
- Yes/No mispricing (should sum to $1)
Example:
Market A: "Team wins championship" = $0.40
Market B: "Team makes finals" = $0.35
Arbitrage: Can't win championship without making finals
Action: Buy "makes finals" if you believe championship odds
3. Momentum Trading
Strategy: Follow price trends
Signals:
- Rapid price movement
- Volume spikes
- News catalysts
- Social sentiment
Process:
1. Identify trending markets
2. Confirm with volume
3. Enter with trend
4. Set stop-loss
5. Exit when momentum fades
4. Mean Reversion
Strategy: Bet on overreactions correcting
When to use:
- Sharp moves on minor news
- Emotional/sentiment driven spikes
- No fundamental change
Example:
- Celebrity rumor moves market 20%
- Rumor debunked
- Price should revert
5. Event-Driven
Strategy: Trade around scheduled events
High-impact events:
- Election days
- Earnings releases
- Fed meetings
- Court decisions
- Sports games
Process:
1. Calendar upcoming events
2. Assess current pricing
3. Position before event
4. Or wait for live trading opportunities
Position Sizing
Kelly Criterion
Optimal bet size = (bp - q) / b
Where:
b = odds received (decimal - 1)
p = probability of winning (your estimate)
q = probability of losing (1 - p)
Example:
- Share price: $0.40 (market says 40%)
- Your estimate: 60% chance
- Potential profit if win: $0.60 per share
b = 0.60 / 0.40 = 1.5
p = 0.60
q = 0.40
Kelly = (1.5 × 0.60 - 0.40) / 1.5
Kelly = (0.90 - 0.40) / 1.5
Kelly = 0.33 (33% of bankroll)
Most traders use fractional Kelly (25-50%) for safety
Risk Management Rules
Conservative:
- Max 5% per position
- Max 20% correlated exposure
- Always have exit plan
Moderate:
- Max 10% per position
- Max 30% correlated exposure
- Use stop-losses
Aggressive:
- Max 20% per position
- High conviction trades only
- Accept higher variance
Analysis Framework
Market Efficiency Check
# Questions to ask:
1. Why is this mispriced?
- Information asymmetry?
- Emotional trading?
- Low liquidity?
2. What does the market know that I don't?
- Check news sources
- Review trading history
- Analyze large positions
3. What's my edge?
- Unique information?
- Better analysis?
- Faster reaction?
Probability Assessment
Base rate analysis:
1. Find historical frequency
2. Adjust for current context
3. Compare to market price
4. Identify gaps
Example: "Will Company X beat earnings?"
- Historical beat rate: 75%
- Current conditions: Strong sector
- Analyst sentiment: Positive
- Your estimate: 80%
- Market price: $0.65 (65%)
- Gap: 15 percentage points
- Action: Consider buying YES
Liquidity Analysis
# Check order book depth
curl -s "https://clob.polymarket.com/book?market=$MARKET_ID" | jq '{
best_bid: .bids[0],
best_ask: .asks[0],
bid_depth: .bids | length,
ask_depth: .asks | length
}'
Good liquidity indicators:
- Tight spread (<$0.02)
- Deep order book (>$10k each side)
- Active trading (>100 trades/day)
Poor liquidity warnings:
- Wide spread (>$0.05)
- Thin book (<$1k depth)
- Few recent trades
Monitoring & Alerts
Price Alert Script
#!/bin/bash
# Monitor market price and alert on threshold
MARKET_SLUG="your-market-slug"
THRESHOLD_HIGH=0.70
THRESHOLD_LOW=0.30
CHECK_INTERVAL=60
while true; do
PRICE=$(curl -s "https://gamma-api.polymarket.com/markets?slug=$MARKET_SLUG" | \
jq -r '.[0].outcomePrices | fromjson | .["Yes"]')
ALERT=""
if (( $(echo "$PRICE > $THRESHOLD_HIGH" | bc -l) )); then
ALERT="HIGH: $MARKET_SLUG at $PRICE"
elif (( $(echo "$PRICE < $THRESHOLD_LOW" | bc -l) )); then
ALERT="LOW: $MARKET_SLUG at $PRICE"
fi
if [ -n "$ALERT" ]; then
echo "[$(date)] $ALERT"
# Add notification here (telegram, email, etc)
fi
sleep $CHECK_INTERVAL
done
Portfolio Tracker
#!/bin/bash
# Track multiple positions
POSITIONS=(
"market-slug-1:YES:100"
"market-slug-2:NO:50"
)
echo "=== Portfolio Status ==="
echo "Date: $(date)"
echo ""
TOTAL_VALUE=0
for pos in "${POSITIONS[@]}"; do
IFS=':' read -r SLUG SIDE SHARES <<< "$pos"
DATA=$(curl -s "https://gamma-api.polymarket.com/markets?slug=$SLUG")
QUESTION=$(echo $DATA | jq -r '.[0].question')
PRICES=$(echo $DATA | jq -r '.[0].outcomePrices | fromjson')
if [ "$SIDE" == "YES" ]; then
PRICE=$(echo $PRICES | jq -r '.["Yes"]')
else
PRICE=$(echo $PRICES | jq -r '.["No"]')
fi
VALUE=$(echo "$SHARES * $PRICE" | bc)
TOTAL_VALUE=$(echo "$TOTAL_VALUE + $VALUE" | bc)
echo "Market: $QUESTION"
echo "Position: $SHARES $SIDE @ \$$PRICE = \$$VALUE"
echo ""
done
echo "=== Total Portfolio Value: \$$TOTAL_VALUE ==="
New Market Scanner
#!/bin/bash
# Find newly created markets
curl -s "https://gamma-api.polymarket.com/markets?closed=false&limit=50&order=startDate&ascending=false" | \
jq '.[] | {
question: .question,
created: .startDate,
volume: .volume,
liquidity: .liquidity,
yes_price: (.outcomePrices | fromjson | .["Yes"])
}'
POLY Distribution Preparation
Expected Timeline
- Status: Confirmed Q1-Q2 2026
- US market relaunch completed
- Distribution to active traders
Qualifying Activities
High Value:
✓ Trading volume (most important)
✓ Number of markets traded
✓ Unique active days
✓ Early market participation
✓ Liquidity provision
Medium Value:
✓ Account age
✓ Consistent activity
✓ Diverse categories
Low/Unknown:
? Referrals
? Social engagement
? Winning percentage
Optimization Strategy
Weekly targets:
□ Trade in 5+ different markets
□ $500+ weekly volume
□ Activity on 5+ unique days
□ At least 1 trade in new market
□ Mix of categories (politics, sports, etc)
Monthly review:
□ Total volume trending up
□ Market diversity maintained
□ No suspicious patterns
□ Consistent engagement
Risk Factors
Market Risks
⚠️ Resolution Risk
- Ambiguous outcomes
- Disputed results
- Delayed resolution
⚠️ Liquidity Risk
- Can't exit large positions
- Slippage on trades
- Illiquid markets
⚠️ Information Risk
- Late/wrong information
- Market manipulation
- Insider trading
Platform Risks
⚠️ Smart Contract Risk
- Potential vulnerabilities
- Bridge risks (Polygon)
⚠️ Regulatory Risk
- US restrictions (now resolved)
- Future regulatory changes
- Regional limitations
⚠️ Oracle Risk
- Resolution source accuracy
- Oracle manipulation
Mitigation
Best Practices:
□ Diversify across markets
□ Don't oversize positions
□ Check resolution sources
□ Monitor for news
□ Keep some dry powder
□ Understand market rules before trading
Advanced Techniques
Correlation Trading
Find related markets and trade the spread:
Example:
- "Candidate A wins primary" = $0.60
- "Candidate A wins general" = $0.35
If A must win primary to win general:
- General should be ≤ Primary
- Look for mispricings
Live Event Trading
Strategy for real-time events (sports, elections):
1. Pre-position before event
2. Watch live with market open
3. React faster than market
4. Scale in/out as odds shift
Tools needed:
- Fast data feed
- Quick execution
- Pre-planned scenarios
Hedging
Reduce risk by offsetting positions:
Example:
- Long "Team A wins" at $0.50
- Event: Key player injured
- Hedge: Buy "Team A wins" NO to lock in smaller loss
- Or: Buy related "Team B wins" YES
Cost of hedge = insurance premium
Useful Queries
Top Volume Markets
curl -s "https://gamma-api.polymarket.com/markets?closed=false&order=volume&ascending=false&limit=20" | \
jq '.[] | {question, volume, liquidity}'
Markets Closing Soon
curl -s "https://gamma-api.polymarket.com/markets?closed=false&order=endDate&ascending=true&limit=20" | \
jq '.[] | {question, endDate, outcomePrices}'
High Liquidity Markets
curl -s "https://gamma-api.polymarket.com/markets?closed=false&order=liquidity&ascending=false&limit=20" | \
jq '.[] | {question, liquidity, spread}'
Markets by Category
# Politics
curl -s "https://gamma-api.polymarket.com/markets?tag=politics&closed=false" | jq
# Sports
curl -s "https://gamma-api.polymarket.com/markets?tag=sports&closed=false" | jq
# Business
curl -s "https://gamma-api.polymarket.com/markets?tag=business&closed=false" | jq
Tracking Spreadsheet
| Date | Market | Side | Shares | Entry | Current | P&L | Notes |
|------|--------|------|--------|-------|---------|-----|-------|
| 1/15 | Election X | YES | 100 | $0.45 | $0.52 | +$7 | Holding |
| 1/18 | Game Y | NO | 50 | $0.30 | $0.25 | +$2.5 | Won |
| 1/20 | Event Z | YES | 75 | $0.60 | $0.55 | -$3.75 | Stop? |
Resources
Official
- polymarket.com - Main platform
- docs.polymarket.com - Documentation
- Discord - Community (search Polymarket Discord)
Analytics
- polymarket.com/activity - Platform activity
- dune.com - On-chain analytics
- parsec.finance - DeFi tracking
News & Research
- @Polymarket on X
- @PolymarketBets on X
- Prediction market newsletters
- Event-specific news sources
Competitors (for arbitrage)
- Kalshi (US regulated)
- Manifold Markets (play money)
- Metaculus (forecasting)
- PredictIt (political)
Disclaimer: Prediction market trading involves risk. Past performance doesn't guarantee future results. Always trade responsibly and never risk more than you can afford to lose. This guide is for educational purposes only. Check local regulations before trading.