How to Use a Trading Bot to Earn Profits on Polymarket?
Original Article Title: Polymarket Trading Bots: From Zero to Automated Gains
Original Article Author: @ArchiveExplorer
Translation: Peggy, BlockBeats
Editor's Note: As Polymarket's trading volume continues to rise, bots are rapidly taking over this open, transparent, low-cost prediction market. From wash trading scripts to market-making models, to cross-market arbitrage and AI-driven probability engines, automated strategies are turning human error, emotion, and slow reactions into scalable gains.
This article quickly takes you through how various trading bots on Polymarket operate and their risk logic, helping readers understand the underlying reasons why "on-chain markets are inherently suited for bots."
The following is the original article:

Polymarket is a platform where users can bet on real-world events - elections, sports events, asset prices, legal processes, and more.
The platform runs on the Polygon blockchain, using USDC as the settlement currency, making the entire process transparent, fast, and almost feeless.
On Polymarket, there are also bots that make money by exploiting traders' mistakes, often faster than any human and able to capitalize on these mistakes thousands of times a day.
Why are bots thriving on Polymarket?
- Open API, transparent order book; bots can see everything
- Extremely low fees, instant settlement; even tiny spreads can turn into profits
- Millions of trades from humans, many of which... are wrong
This is not an article promoting bot tools but a full-spectrum analysis from "the dumbest bot" to "the money-making AI monster."

Dumb Bot Tier
Airdrop Farming Bots: Bots that crazily wash trade for airdrops
The market is widely expecting a "major airdrop." The sole purpose of these bots is to drastically increase trading volume—constantly buying and selling, flipping the same position back and forth. They have no opinion, no judgment, just volume washing.
Example: The bot chooses a liquid market, buys YES for 10 cents, then immediately sells it for 10 cents. It continues this cycle non-stop, creating massive trading volume.
Advantages: None, actually.
Disadvantages: No one knows the criteria for the airdrop distribution; the platform may completely disregard this fake volume; you might be artificially boosting volume for an airdrop that doesn't even exist.
Spike Detection Bots: Capturing Market Panic with Spike Detection Bots
These bots are designed to capture extreme market fluctuations, such as sudden price spikes or crashes, and then bet on mean reversion, speculating that the price will return to normal.
Operation: The bot continuously monitors historical prices, calculating the deviation of the current price from the recent mean. If the price abnormally surges, the bot quickly places a sell order; if the price instantaneously plunges, the bot swiftly buys.
It bets on market overreactions.
Advantages: Can operate with a very small initial fund; simple and understandable logic; can consistently capitalize on "human emotion and mistakes."
Disadvantages: Not all spikes are false signals; sometimes there are indeed major news events; if stop-loss or target prices are set incorrectly, fees can eat away at profits; risk management must be extremely stringent, otherwise, it's a slow bleed.

Intermediate Bots (INTERMEDIATE BOT TIER)
Market Makers: Liquidity Providing Market Maker Bots
These bots profit by continuously placing bid and ask orders, capitalizing on the spread.
The method is simple: The bot places a buy limit order at a slightly lower market price and a sell limit order at a slightly higher market price. Once both sides are filled, the spread becomes your profit.
Additionally, Polymarket rewards liquidity providers, making this a dual source of income.
Advantages: Profit from spreads + platform liquidity rewards; in calm, low-volatility markets, earnings can be very stable; as long as the right market is chosen, the strategy remains effective.
Cons: Requires at least $10,000 or more in funds for arbitrage gains to be meaningful; if the market suddenly makes a large move in one direction, your buy order may get filled only to plummet immediately, leaving you stuck at a very unfavorable price; one bad market move can wipe out a week's worth of gains

Advanced Bot Tier
Arbitrage: Arbitrage Bot
Arbitrage opportunities arise when the combined prices of complementary outcomes (e.g., YES + NO) fall below 100%.
More complex scenarios include: arbitrage between multiple related markets; markets describing the same event using different wording; price discrepancies across different time windows; compound conditions (e.g., combinations like "State A Blue + National Red")
With the correct position structuring, profit can be locked in regardless of the outcome, representing a genuinely risk-free profit.
Pros: Well-designed arbitrage strategies are indifferent to event outcomes; can capitalize on inefficient spaces that humans cannot process in time
Cons: As more arbitrage bots emerge, arbitrage opportunities become scarcer and briefer; seemingly perfect arbitrage strategies on paper are often ruined in execution: there simply isn't enough liquidity at the price points you need
AI Bots: Probabilistic Machines
These bots not only monitor prices but more accurately estimate the true probability of events compared to the market.
The data they ingest includes: historical prices and volume; news flows and real-time events; on-chain data; whale wallet behavior; sometimes even social media sentiment
When the model believes the true probability is 60%, but the market price is only at 40%, the bot will buy undervalued assets and sell overvalued assets, repeating this process throughout the day.
Pros: Successful AI models can be universal across hundreds of markets such as politics, sports, macro, etc.; can overlay multiple signals: statistical indicators, on-chain information, news flows, behavioral traits, etc.
The cons are that you need: data pipelines; system infrastructure; machine learning capabilities; financial intuition; risk management frameworks
Additionally, you need ongoing: storage and computing power; model retraining; real-time monitoring; near-paranoid risk management
This is not a side hustle. This is a bona fide startup.
Tech Stack (Things All Bots Must Have)
Polymarket API Interface: Official documentation containing all real-time data, order submission endpoints. No API, no bot.
Polygon Wallet: All transactions use USDC on Polygon, requiring a wallet capable of signing transactions, managing balances (private key required).
Historical Data Storage: Bots must retain price, volume, spread, market metadata. Recommended PostgreSQL, or a combination of SQL + columnar storage for fast aggregation capabilities.
Python + Basic Tooling: Used for API requests, asynchronous execution, data analysis, machine learning, etc.
Conclusion: Why Do Bots Always Win?
- Speed: No emotions, no hesitation
- Discipline: Strict adherence to the system, no drifting off
- Scale: While you sleep, a bot can monitor thousands of markets simultaneously
- Data Depth: They can integrate price, order book, news, behavior patterns to generate signals you couldn't possibly calculate manually
Trading bots on Polymarket are a set of tools that truly automate money-making. Of course, provided you understand risk management.
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