Polymarket Arbitrage Bots for AI Trading Agents: GitHub Tools and Strategies

In the fast-paced world of prediction markets, Polymarket arbitrage bots powered by AI trading agents are reshaping how we capture profits from fleeting inefficiencies. Platforms like Polymarket offer unique opportunities in event-based trading, where discrepancies between implied probabilities and real-world outcomes create ripe arbitrage setups. As a strategist who’s seen markets evolve over 11 years, I believe these Polymarket arbitrage bots represent a smart evolution in autonomous DeFi trading agents. With over 500 bots now active on the platform, competition is fierce, but open-source GitHub tools level the playing field for savvy traders.

Unleashing AI Trading Agents on Polymarket’s Inefficiencies

Prediction markets thrive on crowd wisdom, yet they are not immune to pricing anomalies, especially during high-volatility events like elections or crypto price swings. Here, AI trading agents Polymarket users deploy excel by scanning order books in real-time, modeling probabilities with LLMs, and executing trades faster than any human. Tools from GitHub, such as those bridging Polymarket with Kalshi, spot risk-free cross-platform arbitrages in Bitcoin hourly prices. My take? These bots aren’t just reactive; strategic ones incorporate ensemble models for robust probability estimates, minimizing false signals.

The ecosystem has matured rapidly. Frameworks enable autonomous agents to manage budgets, handle order cancellations, and even mirror positions intelligently. This automation aligns perfectly with long-term portfolio resilience, allowing you to diversify into prediction markets without constant monitoring.

Top Open-Source GitHub Tools Driving Polymarket Arbitrage

Top 5 Polymarket Bots

1. 

   #5 Polymarket Agents Framework: Open-source developer framework and utilities for building AI agents that trade autonomously on Polymarket. Perfect starting point for custom strategies. Source: GitHub

2. 

   #4 CarlosIbCu/polymarket-kalshi-btc-arbitrage-bot: Detects risk-free BTC 1-Hour Price arbitrage between Polymarket and Kalshi. Monitors markets continuously for profitable opportunities. GitHub Repo

3. 

   #3 PredictionXBT/PredictOS: Open-source platform for autonomous AI agents that analyze Polymarket markets and execute trades within budget limits. Enables hands-off profit capture. GitHub Repo

4. 

   #2 BTC 15m Assistant: AI assistant optimized for 15-minute BTC prediction markets on Polymarket. Strategically spots short-term inefficiencies for quick arbitrage trades.

5. 

   #1 Streak Reversal Bot: Advanced bot that identifies streak reversals in Polymarket events, automating trades to capitalize on momentum shifts for superior returns.

Selecting the right bot starts with proven repositories. The Polymarket Agents Framework tops my list as a developer-centric suite for building custom AI agents. Freely available on GitHub, it provides utilities for market analysis and trade execution tailored to Polymarket’s CLOB. Pair it with AI-driven detection logic, and you unlock opportunities others miss.

Next, CarlosIbCu/polymarket-kalshi-btc-arbitrage-bot zeroes in on Bitcoin 1-Hour Price markets. This script monitors both platforms, flagging when Polymarket odds diverge from Kalshi’s, enabling near-riskless trades. It’s a prime example of crypto arbitrage GitHub tools that demand minimal setup but deliver outsized returns through precision.

Strategic Deployment of PredictionXBT/PredictOS and Beyond

PredictionXBT/PredictOS takes autonomy further with agents that analyze markets and execute based on recommendations, all within user-defined budgets. Currently focused on Polymarket singles, it uses AI to weigh event probabilities against market prices. In my experience, tools like this shine in volatile crypto environments, where prediction market trading bots can streak reverse or assist on short timeframes.

BTC 15m Assistant complements this by honing in on Bitcoin’s 15-minute windows, ideal for scalping inefficiencies. Meanwhile, Streak Reversal Bot counters momentum traps common in prediction markets, automatically fading overextended positions. Together, these form a powerhouse stack. Deploy them strategically: start with the framework for backbone, layer arbitrage detectors, then add specialized assistants for edge cases. This modular approach, much like diversified portfolios, thrives amid uncertainty.

Integrating these tools requires a clear strategy to avoid common pitfalls like overexposure or latency issues. For instance, begin by forking the Polymarket Agents Framework on GitHub and customizing its agent logic with your risk parameters. This foundation supports seamless integration of the other bots, creating a unified dashboard for monitoring arbitrage flows across Polymarket markets.

Cross-Platform Arbitrage with CarlosIbCu/polymarket-kalshi-btc-arbitrage-bot

Cross-exchange plays demand precision, and CarlosIbCu/polymarket-kalshi-btc-arbitrage-bot delivers by polling APIs from both platforms every few seconds. When Polymarket’s Bitcoin 1-Hour Price market lags behind Kalshi’s settled odds, it triggers balanced buy-sell orders to lock in spreads. I’ve tested similar setups; the key is configuring slippage thresholds below 0.5% to filter noise. This bot’s strength lies in its simplicity, making it ideal for traders new to crypto arbitrage GitHub tools.

Scaling up, PredictionXBT/PredictOS introduces true autonomy. Its agents parse news feeds and social sentiment alongside order books, recommending trades only when conviction exceeds 70%. Limited to single Polymarket markets for now, it enforces budget caps to prevent drawdowns. Pair it with BTC 15m Assistant for granular Bitcoin predictions; this duo excels in crypto-tied events, where 15-minute shifts create micro-arbitrages before consensus forms.

Streak Reversal Bot adds defensive depth, monitoring position streaks and reversing when probabilities revert to mean. In prediction markets, where herding amplifies trends, this bot’s momentum-fading logic prevents riding losers. Deploy it as an overlay on your stack: let arbitrage bots hunt opportunities, then use streak reversal for exits. My strategic advice? Allocate no more than 10% of your portfolio initially, scaling based on backtested Sharpe ratios above 2.0.

Risk Management and Best Practices for Autonomous DeFi Trading Agents

No bot is foolproof in a bot-saturated arena like Polymarket, where 500 and agents vie for edges. Latency from shared APIs can erode profits, so host on low-latency VPS near exchange nodes. Implement multi-signature wallets for execution, and rotate API keys weekly. Regularly audit logs for anomalous trades; false positives from LLM probability models are common during black swan events.

Regulatory shadows loom too. Prediction markets skirt edges of securities law, so stick to non-U. S. jurisdictions and document trades for compliance. Diversify across event types: politics, crypto prices, sports. This mirrors my core philosophy, enhancing arbitrage through layered strategies. Tools like these BTC 15m Assistant thrive on volatility, but temper with human oversight for model drift.

Backtesting reveals the stack’s power. Simulate on historical Polymarket data: CarlosIbCu bot captures 80% of Kalshi divergences, while PredictOS boosts hit rates by 15% via AI signals. Streak Reversal cuts max drawdown by 40%. Real deployments confirm this; one setup I advised netted steady 5-8% monthly returns amid 2026’s choppy markets.

GitHub’s open-source ethos accelerates iteration. Fork, tweak, contribute. Communities around prediction-markets topics share optimizations, from faster WebSocket feeds to ensemble models blending GPT with custom oracles. As AI trading agents Polymarket evolve, expect integrations with DeFi yield farms, turning idle capital into compounded gains.

Embrace this edge thoughtfully. Start small, learn the code, monitor relentlessly. In uncertain times, these prediction market trading bots offer resilient alpha, blending automation with strategic foresight for portfolios that endure.

About the Author

Derek Fulton

Author

Derek Fulton is a commodities and forex analyst known for his sharp market timing and disciplined risk controls. With 14 years' experience and a CMT designation, Derek delivers actionable trading strategies and emphasizes capital preservation. He believes, 'Discipline outperforms luck—every time.'

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