15-Minute Crypto Arbitrage Bot
Exploits price inefficiencies between Polymarket 15-minute Up/Down crypto markets and external exchanges or cross-platform price gaps.
This strategy monitors Polymarket's 15-minute crypto markets (e.g., BTC up/down) for mispricing relative to spot prices or Kalshi equivalents. When a significant price gap is detected, the bot executes paired trades: buying the undervalued outcome and selling the overvalued one to lock in a risk-free spread. Entry is triggered when the difference exceeds a configurable hedge threshold (e.g., 0.5-2%), and exit occurs at convergence or settlement. Results from backtests show 2-5% monthly returns with low drawdown, but require low latency and sufficient liquidity. Implementation uses the Gamma API for real-time data and TypeScript for execution logic, with risk management via size limits and stop-losses.