Trading Strategies

PolyBot includes 10 trading strategies for prediction markets, ranging from low-risk arbitrage to AI-powered prediction.

Strategy Overview

Strategy	Risk	Description	Best For
Arbitrage	Low	YES + NO < $1	Risk-free profits
Statistical Arbitrage	Medium	Correlated market divergence	Pairs trading
AI Model	Medium	ML-predicted mispricing	Alpha generation
Spread Farming	Low	Market making	Consistent income
Copy Trading	Medium	Follow whale traders	Passive strategy
Resolution Arb	Low	Near-expiry opportunities	Quick profits
Calendar Spread	Medium	Time-based discrepancies	Event trading
Momentum	High	Trend following	Volatile markets
Poll Divergence	Medium	Poll vs price divergence	Political markets
Volume Spike	High	Unusual volume patterns	Breakout trading

Managing Strategies

List Available Strategies

polybot strategy list

Enable/Disable

# Enable a strategy
polybot strategy enable arbitrage

# Disable a strategy
polybot strategy disable arbitrage

Shadow Mode

Test strategies without real trades:

# Enable shadow mode
polybot strategy shadow arbitrage --enable

# Disable shadow mode (go live)
polybot strategy shadow arbitrage --disable

Run Single Strategy

polybot strategy run arbitrage

Strategy Selection Guide

Low Risk, Steady Returns

• Arbitrage: Pure risk-free when YES + NO < $1
• Spread Farming: Market making with inventory management

Medium Risk, Higher Potential

• Statistical Arbitrage: Requires market correlation analysis
• AI Model: Depends on model quality
• Copy Trading: Depends on whale selection

High Risk, High Reward

• Momentum: Works in trending markets
• Volume Spike: Requires quick execution

Configuration

Each strategy has specific configuration options. See individual strategy pages for details.

Common settings in .env:

# Risk limits apply to all strategies
MAX_POSITION_SIZE_USD=1000
MAX_TOTAL_EXPOSURE_USD=10000
DAILY_LOSS_LIMIT_USD=500

Strategy Development

Want to build your own strategy? See the Custom Strategy Guide.