15-Minute Crypto Market Hedged Spread Making

How It Works This strategy acts as a spread maker on short-duration Polymarket crypto markets. The bot simultaneously quotes (or takes) both YES and NO sides of a binary market, with the combined entry cost (YES price + NO price) kept below $1.00. The difference between $1.00 and the combined cost represents the gross profit per contract if both legs resolve as expected at settlement.

Entry / Exit Conditions Entry requires that the combined cost of a fully hedged YES+NO position is below a user-defined threshold (e.g., $0.95), ensuring a minimum 5% gross margin. The position is held to resolution since both legs cannot simultaneously be wrong on a binary outcome. Early exit may be triggered if one side's price moves favorably enough to close profitably before resolution.

Verification No verified results are available. The strategy is structurally similar to market-making on binary options, a well-understood approach. The 15-minute duration limits exposure to directional risk but also limits the time available to find favorable entry.

Implementation Notes Built in TypeScript using the Polymarket Gamma API. Configurable hedge thresholds allow users to set minimum acceptable spread. The automated nature requires continuous market monitoring and fast order execution within the 15-minute windows.

Risks Liquidity may be insufficient to fill both legs at the desired prices simultaneously. Slippage on either leg can eliminate the spread profit. Market resolution ambiguity or delays can create unexpected holding periods. High competition from other automated market participants in liquid crypto markets.