Whale Copy-Trading via Algorithmic Wallet Tracking

How It Works The system analyzes Polymarket's on-chain transaction data on Polygon to identify wallets with statistically significant positive returns over time, filtering for algorithmic behavior patterns (consistent sizing, rapid execution, high trade frequency). Once candidate whale wallets are identified, the system emits copy-trade signals when those wallets open new positions.

Entry Conditions A signal is emitted when a tracked whale wallet initiates a new position above a size threshold. The read-only architecture means signals require manual or separately automated execution. Entry timing relative to the whale's fill is a critical variable — delay reduces or eliminates the edge.

Exit Conditions Not explicitly defined. A rational implementation would mirror the whale's exits if detectable, or hold to resolution as a fallback.

Verified Results No performance data provided. Both repos (PolyTrace and polymarket-whale-tracker) are described as demo or read-only tools, indicating pre-production status.

Implementation Notes & Risks The core risk is execution latency: by the time a whale trade is detected on-chain, broadcast as a signal, and executed, the market price may have already moved. Polymarket's AMM-style pricing means large whale buys immediately shift prices, so followers are buying after the price impact. Additional risks include whale strategy decay (they stop being profitable), wallet rotation (whales move to new addresses), and the possibility that large positions are hedges rather than directional bets.