Polymarket weather trading bot
Automated bot trading Polymarket weather markets using NWS forecast data and Kelly sizing.
This bot trades Polymarket weather prediction markets by comparing National Weather Service (NWS) forecast probabilities to market implied probabilities. When the NWS forecast implies a higher probability than the market price, the bot buys the YES tokens; when the forecast implies lower probability, it buys NO tokens. Position sizing uses fractional Kelly criterion to optimize growth while managing risk. Entry/exit is automated based on probability discrepancies. Implementation in Python polls NWS data and executes through Polymarket CLOB API. Risks include NWS forecast errors, timing mismatches between forecast updates and market prices, and potential slippage on less liquid weather markets.