What is polymarket-trading-bot?

This is a Node.js trading bot built for Polymarket's short duration Bitcoin Up or Down prediction markets, which repeat every 5 minutes on the Polygon blockchain. It combines an arbitrage strategy with copy trading, meaning it can both trade on its own price logic and mirror the trades of a chosen wallet. The main arbitrage engine watches for the next 5 minute BTC Up or Down market to open, then places buy orders for both the Up and Down side at several price levels, forming a ladder. It tracks the live order book over a WebSocket connection, with a backup method if that connection drops. When the combined price of the best Up and Down offers falls low enough to guarantee a profit margin, the bot buys both sides together. Once it holds a large enough matched position on both outcomes, it merges them back into USDC, the stablecoin used as collateral. As the market's 5 minute window nears its end, the bot stops adding new positions, cancels any orders still open, waits for the market to resolve, and then redeems whatever winning positions it holds. Alongside the arbitrage engine, the repository includes two separate copy trading paths: one built into the main program that starts mirroring a target wallet's new purchases once you set that wallet's address, and a separate, dedicated copy trading module that watches Polymarket's public trade feed directly and reacts quickly to a target wallet's fresh buys, with its own filters for trade age, price limits, and spending caps. The bot includes several built in risk controls, such as caps on spend per market, limits on how much can be taken in a single trade, limits on how imbalanced the bot's Up versus Down position can get, and an hourly loss limit, along with logic to stop trading and shut down gracefully when needed. Setup requires Node.js, a wallet private key, a proxy wallet address, and a Polygon RPC connection, configured through an environment file before running the bot. The README states plainly that running it places real blockchain transactions and market orders, and should only be used by someone who understands the strategy, the wallet setup, and the risks involved.