Cross-Platform Arbitrage (Kalshi/Polymarket)
Exploits price discrepancies between Polymarket and Kalshi for identical prediction market contracts.
This strategy monitors real-time prices on both Polymarket and Kalshi for markets like 'BTC up in 15 minutes', temperature thresholds, or other overlapping event contracts. When a price gap exceeds a configurable threshold (e.g., 2%), the bot executes a paired buy-low/sell-high trade across the two platforms. Entry is triggered by a detected spread above the minimum profit threshold after accounting for gas and platform fees. Exit occurs when the spread narrows or on market settlement. Repos like samuel483/poly-kalshi-arb and Juanp2389/Kalshi-trade-bot implement this. Results are highly dependent on market efficiency and latency; paper-trading modes are common. Implementation uses TypeScript or Python with WebSocket feeds and CLOB API integration.