What is polymarket-automated-trading-bot?

This TypeScript bot automates trading on Polymarket, a blockchain-based prediction market where you buy and sell positions on real-world outcomes. Unlike bots targeting only cryptocurrency price UP/DOWN markets, this one is designed for the broader Polymarket catalog and comes with four distinct strategies you can switch between using a single environment variable. Market making places simultaneous buy and sell orders around a computed fair value, profiting from the spread if both sides fill. You can optionally connect an AI model (Claude or GPT) to adjust the midpoint based on analysis of the underlying event, though the strategy runs without any AI at all by default. Momentum enters a position when price moves sharply in one direction, rides the trend, and exits on a take-profit or stop-loss target. Mean reversion tracks a rolling price average and standard deviation, then bets that an unusual deviation will return toward the average. Copy trading monitors specific wallet addresses from the Polymarket leaderboard and replicates their trades with a configurable size multiplier and optional delay. Risk management applies across all four strategies. There is a per-market loss cap that halts activity on a specific market if losses cross a threshold, a total drawdown cap that cancels all open orders and pauses everything, an exposure cap that blocks new entries when you are already overextended, and an inventory skew mechanism for market making that tilts quotes to reduce imbalanced positions. Setup requires a Polygon wallet funded with USDC, a private key for signing, and Node.js. You copy the example environment file, fill in your credentials and strategy parameters, run npm run setup to verify connectivity, then npm run dev to start. For copy trading you supply a comma-separated list of wallet addresses, a size multiplier relative to the target, and a maximum order size in USD. The README warns that this involves real money, that prediction markets can resolve to zero and wipe your position, that copy trading adds latency so you will typically get worse prices than the wallet you follow, and that you need to set token allowances on Polygon before the exchange will accept your orders.