15-Minute CLOB Hedge Arbitrage
Automates arbitrage on Polymarket 15-minute Up/Down markets by hedging overpriced contracts and managing risk dynamically.
This bot targets Polymarket's 15-minute binary Up/Down markets (e.g., 'Will BTC be above $X in 15 min?'). It uses the Gamma API to detect when a contract's price deviates from its fair value based on real-time BTC price feeds and implied volatility. When an overpriced contract is identified, the bot sells it and hedges by taking the opposite position on the same market or a correlated market. Configurable hedge thresholds and integrated risk management prevent runaway losses. The strategy aims for small, frequent profits (1-3% per trade) with high win rates. Performance depends on accurate pricing models and low-latency access to Polymarket's order book.