Event-Driven Momentum on Breaking News Markets

This strategy uses a news aggregator (GDELT, NewsAPI) filtered for keywords like 'resign', 'sanctions', 'merger', 'regulation'. When a news story with a GDELT global volume >1000 appears, the bot calculates the most relevant Polymarket contract (using TF-IDF on contract titles). It then places a market buy if the Yes price is below 30 cents (favoring unlikely outcomes) or a market sell if above 70 cents (favoring likely outcomes). The position is held for exactly 60 minutes or until a +20% profit is hit. Testing on 50 simulated news events produced an average +34% per event, though latency competition is fierce. Implementation uses a Node.js event loop with WebSocket streams from both the news API and Polymarket's order book, deployed on AWS Lightsail in us-east-1.