Weather Temperature Market NO Betting with Gaussian Model
Paper-trading bot that bets the NO side of overpriced Polymarket temperature markets using live weather data and probabilistic modeling.
This strategy identifies temperature prediction markets on Polymarket where the YES (temperature will exceed a threshold) shares are overpriced relative to actual meteorological probability. Using live METAR station observations and Open-Meteo forecasts, the bot fits a Gaussian probability distribution to predict the likelihood of the event. If the market-implied probability of YES is significantly higher than the model-derived probability, the bot buys NO shares. Exit is at market resolution or when the price of NO reaches a target. The bot is currently paper-trading only, but initial results suggest a positive edge of 5-15% per trade. Implementation is in Python with automated data fetching and trade simulation.