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awesome-openclaw-usecases/usecases/polymarket-autopilot.md

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# Polymarket Autopilot: Automated Paper Trading
Manually monitoring prediction markets for arbitrage opportunities and executing trades is time-consuming and requires constant attention. You want to test and refine trading strategies without risking real capital.
This workflow automates paper trading on Polymarket with custom strategies:
• Monitors market data via API (prices, volume, spreads)
• Executes paper trades using TAIL (trend-following) and BONDING (contrarian) strategies
• Tracks portfolio performance, P&L, and win rate
• Delivers daily summaries to Discord with trade logs and insights
• Learns from patterns: adjusts strategy parameters based on backtesting results
## Pain Point
Prediction markets move fast. Manual trading means missing opportunities, emotional decisions, and difficulty tracking what works. Testing strategies with real money risks losses before you understand market behavior.
## What It Does
The autopilot continuously scans Polymarket for opportunities, simulates trades using configurable strategies, and logs everything for analysis. You wake up to a summary of what it "traded" overnight, what worked, and what didn't.
Example strategies:
- **TAIL**: Follow trends when volume spikes and momentum is clear
- **BONDING**: Buy contrarian positions when markets overreact to news
- **SPREAD**: Identify mispriced markets with arbitrage potential
## Skills Needed
- `web_search` or `web_fetch` (for Polymarket API data)
- `postgres` or SQLite for trade logs and portfolio tracking
- Discord integration for daily reports
- Cron jobs for continuous monitoring
- Sub-agent spawning for parallel market analysis
## How to Set it Up
1. Set up a database for paper trading:
```sql
CREATE TABLE paper_trades (
id SERIAL PRIMARY KEY,
market_id TEXT,
market_name TEXT,
strategy TEXT,
direction TEXT,
entry_price DECIMAL,
exit_price DECIMAL,
quantity DECIMAL,
pnl DECIMAL,
timestamp TIMESTAMPTZ DEFAULT NOW()
);
CREATE TABLE portfolio (
id SERIAL PRIMARY KEY,
total_value DECIMAL,
cash DECIMAL,
positions JSONB,
updated_at TIMESTAMPTZ DEFAULT NOW()
);
```
2. Create a Discord channel for updates (e.g., #polymarket-autopilot).
3. Prompt OpenClaw:
```text
You are a Polymarket paper trading autopilot. Run continuously (via cron every 15 minutes):
1. Fetch current market data from Polymarket API
2. Analyze opportunities using these strategies:
- TAIL: Follow strong trends (>60% probability + volume spike)
- BONDING: Contrarian plays on overreactions (sudden drops >10% on news)
- SPREAD: Arbitrage when YES+NO > 1.05
3. Execute paper trades in the database (starting capital: $10,000)
4. Track portfolio state and update positions
Every morning at 8 AM, post a summary to Discord #polymarket-autopilot:
- Yesterday's trades (entry/exit prices, P&L)
- Current portfolio value and open positions
- Win rate and strategy performance
- Market insights and recommendations
Use sub-agents to analyze multiple markets in parallel during high-volume periods.
Never use real money. This is paper trading only.
```
4. Iterate on strategies based on performance. Adjust thresholds, add new strategies, backtest historical data.
## Related Links
- [Polymarket API](https://docs.polymarket.com/)
- [Paper Trading Best Practices](https://www.investopedia.com/articles/trading/11/paper-trading.asp)