Prediction Market Arbitrage Bot

Automated sub-$1.00 binary pair execution on Polymarket with real-time risk controls and live monitoring.

2025-01 • In Progress

Domain: FinTech, Algorithmic Trading, Systems Engineering

Tech: Rust, TypeScript, React, Redis, WebSockets, Polymarket CLOB API, Raspberry Pi

Impact

  • Built an automated arbitrage strategy that accumulated both sides of binary markets below $1.00 combined cost, creating guaranteed payout spread before fees.
  • Protected deployed capital with allocation buckets, imbalance guards, and deferred refunds that prevented overspending during cancel-fill race conditions.

Responsibilities

  • Engineered the core execution engine in Rust with live market-data streaming, opportunity detection, and post-only limit ladder placement.
  • Implemented Redis-backed state, automatic position reconciliation from the Polymarket Data API, and safe paper/live trading mode switching.

Key Features

  • Real-time WebSocket price streaming and cross-side arbitrage detection
  • Post-only order management with layered limit orders, cancellations, and re-quoting
  • Bucket-based capital allocation across mid, outer, extreme, and savings bands
  • Live React dashboard for positions, per-side orders, P/L, and resolved market history

Architecture

  • Rust trading service connected to Polymarket CLOB market data and execution endpoints
  • Redis persistence for orders, fills, balances, and restart-safe recovery
  • TypeScript/React dashboard backed by a WebSocket-enabled REST API
  • Raspberry Pi deployment for always-on execution and monitoring