Prediction Market Trading Engine

Experiment first.
Deploy capital second.

PolyLab runs hundreds of paper trading strategies against live Polymarket data. When a strategy proves it has edge, it graduates to real money. No guessing. No gut feelings. Just math.

polylab — experiment runner
// Connect to Polymarket CLOB API
polylab connect --ws wss://ws-subscriptions-clob.polymarket.com
// Spin up 12 paper strategies in parallel
polylab run --strategies arb,longshot,mm,news --mode paper
// Track performance across all experiments
polylab status
 
┌─ Strategy ──────── Win Rate ── Sharpe ── Drawdown ── Status ─┐
arb-sum-to-one 67.2% 2.14 -3.8% RUNNING
longshot-bias 54.1% 1.87 -6.2% RUNNING
market-maker-v3 71.8% 2.41 -1.9% RUNNING
news-reactive-v1 42.3% 0.68 -12.1% REVIEW
└───────────────────────────────────────────────────────────────┘
Six angles of attack
Sum-to-One Arbitrage LOW RISK

Buy YES + NO when combined price drops below $1.00. Guaranteed profit on resolution. Edges last seconds, speed is everything.

Market Making MEDIUM RISK

Provide liquidity on both sides of low-volatility markets. Capture the spread. Let the bot analyze historical price movements across timeframes.

Longshot Bias RESEARCH

Academic research shows prediction markets systematically misprice low-probability events. Exploit the bias with disciplined position sizing.

News Reactive HIGH RISK

Parse news feeds and react to market-moving events faster than manual traders. AI-powered sentiment analysis for rapid position entry.

Cross-Platform Arb MEDIUM RISK

Exploit pricing differences between Polymarket and Kalshi on identical events. Two platforms, one outcome, different odds.

Smart Money Mirror ALPHA

Track high-performing wallets on-chain. Mirror their positions with timing adjustments and independent exit logic.

From hypothesis to profit
01
Experiment

Define a strategy hypothesis. Run it against live Polymarket data in paper mode. Zero risk.

02
Validate

Track win rate, Sharpe ratio, max drawdown. Statistical significance before a single dollar moves.

03
Graduate

Strategies that prove edge get promoted to live trading. Same logic, same risk management, real USDC.

04
Compound

Winners get more capital. Losers get killed. The portfolio evolves through continuous experimentation.

The edge isn't in the strategy. It's in the process.

Most Polymarket traders lose money because they trade on conviction. PolyLab trades on evidence. Run the experiments, trust the data, deploy only what works.