TypeScript bot for hedged two-sided arbitrage on Polymarket 15-minute Up/Down crypto markets (BTC, ETH, SOL, XRP, and other assets you enable). It polls CLOB midpoints, times entries using mean-reversion style triggers, then completes the hedge so your combined average cost per YES + NO pair stays below a configurable ceiling—classic Gabagool-style “spread making” adapted for this codebase.
This repository is a fork / continuation of the Polymarket arbitrage spread-maker lineage (internally the engine still migrates legacy gabagool:* state keys; see src/order-builder/gabagool.ts and copytrade-state.json). The public-facing name here is Spread Maker; the implementation class is CopytradeArbBot with GabagoolArbBot kept as an alias for compatibility.
Add your screen recording or walkthrough below when ready (replace the placeholder link):
Demo: __
polymarket.arbitrage.bot.mp4
In a binary market, YES and NO (Up/Down) shares settle so that one side pays $1 and the other $0 per share. If you hold equal share counts on both sides, your total USDC spent for that paired position is your “locked-in” cost for a complete set. If that combined cost is less than $1 per paired share (after fees and slippage), you have a positive edge at resolution: you can redeem / merge for roughly $1 of collateral per complete set, minus protocol realities.
This bot does not rely on a single directional bet. It repeatedly tries to:
- Buy the first leg when one side looks temporarily cheap (midpoint-based).
- Buy the second leg under a dynamic price rule tied to the first fill, so the running average YES price + average NO price stays near or below your
TRADE_MAX_SUM_AVGguard.
That paired structure is the spread-maker / Gabagool-style hedge: you are manufacturing a discount to $1 by legging in with timing, not by predicting the winner.
Markets are resolved by Gamma slugs like {market}-updown-15m-{unixStartOfWindow}. Each 15-minute window, the bot tracks midpoint prices for the Up and Down tokens via the CLOB API.
- The bot waits until at least one side’s midpoint is at or below
TRADE_THRESHOLD(e.g.0.47or0.499depending on your env). - If both sides qualify, it defaults to YES (Up) first (configurable behavior is documented in code comments as priority).
- After a full hedge cycle completes (see Phase C), the next cycle can again pick whichever side is below threshold for the first buy of the new hedge (“flexible entry”), then it enforces strict alternation so you do not stack the same side twice in a row (except that first flexible leg).
Once a side is selected, the bot tracks a running low (tempPrice) on that side’s midpoint and can buy when any of these fire:
| Trigger | Idea |
|---|---|
| Reversal | Price made a new local low, then moves up by at least REVERSAL_DELTA from that low—mean-reversion confirmation instead of catching a falling knife blindly. |
| Depth / discount | Price drops at least TRADE_DEPTH_BUY_DISCOUNT_PERCENT below the current tracked reference (e.g. “5% under temp”)—aggressive fill when the book paints a sharp dip. |
| Second-leg timer | On the hedge (opposite) leg, after the first fill, the bot tracks how long the opposite side’s price stays at or below a dynamic threshold (see Phase C). If it stays there for TRADE_SECOND_SIDE_TIME_THRESHOLD_MS, it triggers a time-based second buy. |
Orders use fast execution modes by default (FAK, optional fire-and-forget) with price buffers and optional adaptive polling so the loop can react quickly in short windows.
After a successful first fill, the bot computes a target for the opposite side using your actual fill price (when known):
- Base idea: complement-style threshold: roughly
1 - firstFillPrice, so a cheap first leg implies a higher acceptable price on the second leg while still aiming for a sub-$1 combined average. TRADE_DYNAMIC_THRESHOLD_BOOSTshifts that threshold more aggressive (buys the hedge sooner).TRADE_SECOND_SIDE_BUFFERrequires price to bedynamicThreshold - bufferbefore an immediate hedge trigger fires.
The bot also enforces TRADE_MAX_SUM_AVG: before each buy it computes the maximum price allowed on the candidate leg so that avg(YES) + avg(NO) would not exceed your cap—this is the main PnL / edge guard for the pair.
MAX_BUYS_PER_SIDEcaps attempts per side per 15m slug (failed attempts count too, per implementation).- State is persisted in
src/data/copytrade-state.json(migrated from oldergabagool-state.jsonkeys if present). - Holdings metadata for redemption is maintained for
npm run redeem:holdings.
| Layer | Choice |
|---|---|
| Runtime | Node.js 18+ (or Bun) |
| Language | TypeScript |
| Trading | @polymarket/clob-client (CLOB orders, midpoints) |
| On-chain | ethers for allowances, balance, redemption flows |
- Node.js 18+ (or Bun)
- Polygon wallet with USDC and POL (gas)
- RPC URL for Polygon (e.g. Alchemy/Infura) for allowances and redemption
git clone <your-repo-url>
cd Polymarket-Arbitrage-Trading-Bot-Spreadmaker
npm installCopy the example env and set at least PRIVATE_KEY and TRADE_MARKETS:
cp .env.example .env| Variable | Description | Default |
|---|---|---|
PRIVATE_KEY |
Wallet private key | required |
TRADE_MARKETS |
Comma-separated markets (e.g. btc, eth, sol) |
btc |
TRADE_SHARES |
Shares per leg per order | 5 |
TRADE_THRESHOLD |
Midpoint threshold to start tracking first leg | 0.499 |
TRADE_TICK_SIZE |
Price precision | 0.01 |
TRADE_PRICE_BUFFER |
Extra limit cushion for fills | 0.03 |
TRADE_WAIT_FOR_NEXT_MARKET_START |
Align to next 15m boundary | true |
MAX_BUYS_PER_SIDE |
Max buy attempts per side per slug | 4 |
TRADE_MAX_SUM_AVG |
Max avg(YES) + avg(NO) guard | 0.98 |
REVERSAL_DELTA |
Reversal bounce from tempPrice to trigger buy |
0.02 |
TRADE_DEPTH_BUY_DISCOUNT_PERCENT |
“Flash discount” vs tracked reference | 0.05 |
TRADE_DYNAMIC_THRESHOLD_BOOST |
Extra aggressiveness on second leg | 0.04 |
TRADE_SECOND_SIDE_BUFFER |
Immediate hedge: buy when price ≤ threshold − buffer | 0.01 |
TRADE_SECOND_SIDE_TIME_THRESHOLD_MS |
Time below second-leg threshold before buy | 200 |
CHAIN_ID |
Chain ID (Polygon) | 137 |
CLOB_API_URL |
CLOB base URL | https://clob.polymarket.com |
RPC_URL / RPC_TOKEN |
RPC for on-chain calls | — |
BOT_MIN_USDC_BALANCE |
Minimum USDC to start bot | 1 |
LOG_DIR / LOG_FILE_PREFIX |
Log directory and prefix | logs / bot |
Note: API credentials are created on first run and stored in src/data/credential.json. Legacy env keys like GABAGOOL_* are still accepted as fallbacks (see src/config/index.ts).
npm start
# or: bun src/index.ts# Auto-redeem resolved markets (holdings file)
npm run redeem:holdings
# Redeem by condition ID
npm run redeemnpm run balance:lognpx tsc --noEmit
bun --watch src/index.ts| Path | Role |
|---|---|
src/index.ts |
Entry: credentials, CLOB, allowances, min balance, starts CopytradeArbBot |
src/config/index.ts |
Loads .env; copytrade / Gabagool-compatible settings |
src/order-builder/copytrade.ts |
Core strategy: slug resolution, midpoint loop, triggers, hedge math, state |
src/order-builder/gabagool.ts |
Re-exports CopytradeArbBot as GabagoolArbBot for compatibility |
src/providers/clobclient.ts |
CLOB client singleton |
src/security/allowance.ts |
USDC / CTF approvals |
src/security/createCredential.ts |
API credential bootstrap |
src/utils/balance.ts |
Balance checks / gates |
src/utils/holdings.ts |
Position persistence for redemption |
src/utils/console-file.ts |
Daily file logging |
src/data/copytrade-state.json |
Per-slug state (migrated from gabagool:* keys if needed) |
src/data/token-holding.json |
Token holdings for redemption (generated) |
Trading prediction markets involves significant risk: adverse selection, failed or partial fills, API/RPC outages, and parameter drift can all convert a theoretical edge into losses. This software is provided as-is. Use only with capital you can afford to lose, validate behavior in paper or small size first, and ensure you understand Polymarket rules and fees.
ISC
