Polymarket Arbitrage Bot: Best Arbitrage Bots for Crypto Traders Automating Polymarket Strategies in 2026

What Is Polymarket Arbitrage Bot?

Polymarket Arbitrage Bot is an open-source arbitrage bot built by dev-protocol for Polymarket's 15-minute Up/Down prediction markets on assets like BTC, ETH, SOL, and XRP. It automates a dump-and-hedge strategy: detects sharp price drops in the first N minutes via Gamma API market discovery and CLOB orderbooks, buys the dipped side, then hedges the opposite when total cost hits ≤0.95 (configurable). Polymarket Arbitrage Bot is one of the best arbitrage bots for crypto traders automating Polymarket strategies, with 216 GitHub stars as of February 2026, full TypeScript typing, simulation mode, and stop-loss hedging. Supports proxy wallets including EOA, Proxy, and GnosisSafe on Polygon.

Quick Overview

Who Should Use Polymarket Arbitrage Bot?

• High-frequency Polymarket traders monitoring 15m Up/Down markets on BTC/ETH/SOL/XRP who want automated dip buys and hedges without manual orderbook polling.
• DeFi developers building Polygon-based trading workflows needing type-safe CLOB execution, proxy wallet support, and .env-configurable risk parameters like sum target and stop-loss wait times.
• Risk-controlled arbitrageurs running dry-run simulations before production trades, tracking per-period P&L via history.toml logs.

Not ideal for:

• Traders on non-Polygon chains or markets beyond 15m Up/Down like hourly/event-based Polymarket contracts.
• Beginners without Node.js/Polygon wallet setup or USDC/POL balances for gas and trading.
• Low-volume users uninterested in configurable thresholds like move detection or max hedge wait.

Key Features of Polymarket Arbitrage Bot

• Dump-and-hedge strategy — Buys dipped Up or Down outcome during first N minutes of 15m period, hedges opposite side when leg1 cost + opposite ask ≤ target (default 0.95), locking profit via CLOB orders.
• Multi-asset market discovery — Queries Gamma API for current 15m slugs on BTC, ETH, SOL, XRP; auto-switches on period rollover using timestamp checks.
• CLOB orderbook polling — Fetches bid/ask and time remaining every cycle; detects sharp drops exceeding move threshold (e.g., 5% via config).
• Stop-loss hedging — Forces hedge after max wait time (configurable minutes) at stop-loss percentage to cap downside on unprofitable positions.
• Simulation and production modes — Defaults to dry-run logging without orders; set PRODUCTION=true for live USDC trades and token redemptions on close.
• Proxy wallet integration — Derives API keys from signer or uses explicit key/secret/passphrase; supports EOA, Polymarket proxy, GnosisSafe signatures.
• P&L tracking and logging — Redeems winning tokens post-settlement; appends history.toml with per-period and cumulative profits/losses for audits.

Polymarket Arbitrage Bot vs Alternatives

Hummingbot excels in perpetuals and AMM liquidity provision across DEXes like Uniswap, pick it over Polymarket Arbitrage Bot for non-prediction market strategies. CCXT bots suit cross-exchange arbitrage like Binance-Kraken pairs via unified order placement, but require custom dump logic unlike Polymarket Arbitrage Bot's built-in 15m focus. For no-code retail setups, 3Commas handles basic signals; avoid for advanced CLOB hedging. Browse all Arbitrage Bots.

How Polymarket Arbitrage Bot Works

Polymarket Arbitrage Bot polls Gamma API for active 15m market slugs (e.g., BTC-updown-15m-current-timestamp), then fetches CLOB orderbooks for Up/Down bid/ask spreads and countdown timers. On period start, it scans for dumps: if Up ask drops > threshold (e.g., 10% from prior), it places Leg 1 buy at market; repeats for Down. Core abstraction is event-loop monitoring with configurable watch window (first 3-5 mins typical).

Hedging logic computes real-time combined cost: Leg 1 fill price + opposite ask. If ≤ sum target within max wait (e.g., 10 mins), executes Leg 2 buy to hold balanced position profiting on resolution. Stop-loss triggers full hedge at penalty (e.g., 98% breakeven); post-close, redeems via Polygon tx with POL gas.

# Clone and setup
$ git clone https://github.com/dev-protocol/polymarket-arbitrage-bot.git
$ cd polymarket-arbitrage-bot
$ npm install && npm run build
$ cp .env.example .env
# Edit .env: PRIVATE_KEY=0x..., MARKETS=BTC,ETH, SUM_TARGET=0.95
$ npm start  # Simulation mode

This installs dependencies, builds TypeScript to JS, loads .env for wallet/API keys, and starts polling loop. Expect console logs of market scans, dip alerts, simulated fills/P&L; no real funds move until npm run prod. Initial run discovers markets, logs history.toml baseline.

Pros and Cons of Polymarket Arbitrage Bot

Pros:

• Zero-config simulation prevents capital loss during testing, with full order logging for backtest validation.
• Type-safe TypeScript catches config errors at build; strict types for CLOB responses ensure reliable parsing.
• Handles transients like API 429s by retrying polls without crashing, maintaining 99% uptime in production.
• Configurable per-leg shares (e.g., 100 USDC) and thresholds enable scaling from $100 to $10k positions.
• Auto-redemption of YES/NO tokens post-settlement minimizes manual Polygon ops.
• Proxy/GnosisSafe support fits institutional wallets without exposing private keys.

Cons:

• Limited to Polymarket 15m Up/Down; no support for hourly or yes/no events like elections.
• Relies on Polygon gas for redemptions; high fees during congestion eat small edges (mitigate with POL bundling).
• No built-in slippage protection beyond market orders; fast dumps may fill at worse prices.
• History.toml is append-only text; lacks SQL export or dashboard for P&L visualization.
• Requires manual .env tuning for optimal thresholds per asset volatility (BTC vs SOL).

Getting Started with Polymarket Arbitrage Bot

Fund a Polygon wallet with USDC (trading) and POL/MATIC (gas ~0.01 per redemption). Install Node.js 16+, clone repo, run npm install && npm run build. Copy .env.example to .env, set PRIVATE_KEY=0xYourEOAKey, PRODUCTION=false (sim first), MARKETS=BTC,ETH, SUM_TARGET=0.95, MOVE_THRESHOLD=0.05, MAX_WAIT_MIN=10.

# Production run
$ npm run prod

Bot starts polling Gamma for markets, scans orderbooks every 10s, logs dips/feasible hedges to stderr and history.toml. First cycle may idle if no dump; expect 1-2 trades/hour on volatile assets. Monitor for API key derivation success; tweak watch window if missing early dips.

Verdict

Polymarket Arbitrage Bot is the strongest option for crypto traders automating 15m Up/Down hedges when running Polygon USDC positions with simulation testing. Its CLOB polling and stop-loss logic deliver consistent edges on BTC/ETH dips, backed by 216 stars and type-safe execution. Trade-off: asset-limited scope—pair with Hummingbot for broader markets, but deploy confidently for Polymarket focus.