Momentum Impulse Detection with Trailing Stops and Hedging

Developed in the 'polymarket-impulse-monitoring-trading-bot' repository, this strategy focuses on capturing short-term price momentum in Polymarket markets. It continuously monitors price feeds for sudden impulse moves—sharp, statistically significant price changes that often indicate new information is being priced in. Upon detecting an impulse, the bot enters a position in the direction of the move, betting that the momentum will continue or at least not fully reverse before settlement. A key feature is the use of trailing stops to lock in profits as the trade moves favorably, and hedging mechanisms to reduce downside risk, such as taking offsetting positions in correlated markets. Entry is triggered by the impulse detection algorithm (e.g., price change exceeding 3 standard deviations in a 5-minute window), and exit occurs when the trailing stop is hit, the hedge triggers, or the market settles. The bot tracks settlements in real time to automatically claim winnings or realize losses. No specific P&L is shared, but the architecture is designed for high-frequency, event-driven trading. Implementation is in TypeScript/JavaScript, using Polymarket's WebSocket feeds for real-time data.