Polymarket AI Trading Bot

AI-powered trading bot for Polymarket prediction markets with strategy backtesting, live deployment, risk management, and automated profit extraction.

Features

• Multi-Strategy Portfolio: Run multiple strategies simultaneously
• Paper & Live Trading: Test strategies before deploying real capital
• AI-Powered Analysis: Claude integration for market analysis
• Risk Management: Position sizing, drawdown limits, circuit breakers
• Automated Profit Extraction: Weekly profit calculation and withdrawal
• Real-time Monitoring: Dashboard and Telegram/Discord alerts

Quick Start

Prerequisites

• Python 3.11+
• Docker & Docker Compose
• Poetry (Python package manager)

Installation

1. Clone the repository:

git clone https://github.com/yourusername/polymarket-bot.git
cd polymarket-bot

2. Copy environment file and configure:

cp .env.example .env
# Edit .env with your configuration

3. Start services:

make init  # Installs dependencies, starts Docker, runs migrations

4. Start the development server:

make dev

The API will be available at http://localhost:8000

Configuration

Required environment variables:

# Wallet (REQUIRED for trading)
WALLET_PRIVATE_KEY=0x...
WALLET_ADDRESS=0x...

# Database
DATABASE_URL=postgresql+asyncpg://postgres:postgres@localhost:5432/polymarket_bot
REDIS_URL=redis://localhost:6379/0

# AI (optional, for market analysis)
ANTHROPIC_API_KEY=sk-ant-...

Architecture

polymarket-bot/
├── src/
│   ├── api/           # FastAPI routes
│   ├── core/          # Orchestrator, scheduler
│   ├── strategies/    # Trading strategies
│   ├── trading/       # Execution engine
│   ├── risk/          # Risk management
│   ├── ai/            # LLM integration
│   ├── integrations/  # Polymarket client
│   ├── profit/        # P&L tracking
│   └── db/            # Database models
├── tasks/             # Celery background tasks
├── tests/             # Test suite
└── alembic/           # Database migrations

Usage

Create a Bot

curl -X POST http://localhost:8000/api/v1/bots \
  -H "Content-Type: application/json" \
  -d '{
    "name": "My Trading Bot",
    "initial_capital": 10,
    "wallet_address": "0x...",
    "mode": "paper"
  }'

Add a Strategy

curl -X POST http://localhost:8000/api/v1/strategies \
  -H "Content-Type: application/json" \
  -d '{
    "bot_id": "your-bot-id",
    "name": "Momentum Strategy",
    "type": "momentum",
    "allocation_pct": 50,
    "parameters": {
      "fast_ma_period": 6,
      "slow_ma_period": 24
    }
  }'

Start Trading

curl -X POST http://localhost:8000/api/v1/bots/{bot_id}/start

Available Strategies

Strategy	Type	Description
Momentum	momentum	Trend-following using moving average crossovers
Mean Reversion	mean_reversion	Counter-trend using Bollinger Bands and RSI
Sentiment	sentiment	News-based trading signals

API Endpoints

Endpoint	Method	Description
/api/v1/bots	GET	List all bots
/api/v1/bots	POST	Create a new bot
/api/v1/bots/{id}/start	POST	Start a bot
/api/v1/bots/{id}/stop	POST	Stop a bot
/api/v1/strategies	GET	List strategies
/api/v1/strategies	POST	Create strategy
/api/v1/markets	GET	List markets
/api/v1/positions	GET	List positions
/api/v1/analytics/bots/{id}/performance	GET	Get performance

Development

Running Tests

make test

Linting & Formatting

make lint
make format

Database Migrations

# Create a new migration
make migrate-create

# Apply migrations
make migrate

Celery Workers

# Start worker
make worker

# Start beat scheduler
make beat

Risk Warnings

• This is experimental software. Use at your own risk.
• Start with small amounts ($10) to test.
• Polymarket has US restrictions. Ensure compliance.
• Smart contract risk exists for all funds.
• Never share your private keys.

License

MIT License - see LICENSE file for details.

Contributing

Contributions are welcome! Please read CONTRIBUTING.md for guidelines.