🤖 PolyBot Live v4.2

A sophisticated automated trading bot for Polymarket prediction markets

Real-time market scanning • EIP-712 authentication • Multi-wallet support • Paper & Live trading

Quick Start • Features • Setup Guide • Deploy to Vercel • API Docs

📖 Overview

PolyBot Live is a full-stack automated trading bot for Polymarket prediction markets, built with Python (Flask) backend and a real-time browser dashboard. It supports paper trading (simulation) and live trading using proper EIP-712 signed orders on the Polymarket CLOB (Central Limit Order Book).

What it does

Scans 50+ active Polymarket prediction markets every 8 seconds
Scores each market using Kelly Criterion, liquidity analysis, and edge calculation
Signals trading opportunities with confidence levels (STRONG BUY, OPPORTUNITY, MONITOR)
Executes trades via browser wallet signatures or headless private key (never leaves your control)
Tracks P&L, win rate, equity curve, and open positions in real time

✨ Features

🔐 Authentication Methods

Method	Description	Requirements
MetaMask	Browser extension wallet	MetaMask installed
OKX Wallet	Browser extension wallet	OKX Wallet installed
Coinbase Wallet	Browser extension wallet	Coinbase Wallet installed
Rabby	Browser extension wallet	Rabby installed
Trust Wallet	Browser extension wallet	Trust Wallet installed
WalletConnect	QR code for mobile wallets	Free WC Project ID
Email OTP	Built-in SMTP (no SDK)	Gmail App Password
Google Sign-In	Built-in PKCE OAuth2 (no SDK)	Google OAuth credentials
Config Key	Headless private key mode	Private key in config

📊 Trading Engine

Kelly Criterion position sizing with configurable fraction
Liquidity filtering (minimum $25K by default)
Price impact analysis (max 3% slippage protection)
Edge detection with tiered thresholds (2% → 6.5% depending on market)
Paper trading mode with realistic win/loss simulation
Live trading via Polymarket CLOB FOK (Fill-or-Kill) orders

🖥️ Dashboard

Real-time equity curve
Live execution log (last 500 entries)
Market scanner with search/filter/sort
Trade history with P&L breakdown
Open positions viewer
Pending trade approval banner (for browser wallets)

🔧 Technical Highlights

EIP-712 typed data signing — correct ClobAuthDomain spec (fixed v4.1 bug)
Polygon network (Chain ID 137) — all trades on Polygon
No third-party SDK for Email/Google auth (pure Python SMTP + PKCE)
Deterministic ephemeral wallets derived from email for Email/Google sessions
Thread-safe bot loop with configurable scan interval

⚡ Quick Start

Local Development (5 minutes)

# 1. Clone the repository
git clone https://github.com/YOUR_USERNAME/polybot-live.git
cd polybot-live

# 2. Install dependencies
pip install flask flask-cors requests

# 3. (Optional) For live trading
pip install py-clob-client eth-account

# 4. Run the bot
python polybot_live.py

# 5. Open dashboard
# Automatically opens http://localhost:8765

Paper mode is the default — no wallet or funds needed to start scanning and simulating trades.

🛠️ Setup Guide

Step 1 — Basic Configuration

Edit the CONFIG dictionary at the top of polybot_live.py:

CONFIG = {
    # Trading parameters (safe defaults)
    "CAPITAL_USDC":     500.0,    # Starting capital for paper trading
    "KELLY_FRACTION":   0.25,     # Conservative Kelly (25% of full Kelly)
    "MIN_LIQUIDITY":    25000,    # Minimum market liquidity ($)
    "MIN_EDGE":         0.04,     # Minimum edge to consider a trade
    "MAX_PRICE_IMPACT": 0.03,     # Max 3% price impact
    "MAX_BET_PCT":      0.06,     # Max 6% of capital per bet
    "MIN_BET_USDC":     2.0,      # Minimum bet size
    "SCAN_INTERVAL":    8,        # Seconds between market scans
    "START_MODE":       "paper",  # Start in paper mode (safe default)
}

Step 2 — Email OTP Login (Optional)

Enables secure email-based login with 6-digit OTP codes. Uses Gmail or any SMTP server.

Get Gmail App Password:

Go to myaccount.google.com → Security
Enable 2-Step Verification (required)
Go to App passwords → Generate → Copy 16-character password

"SMTP_HOST":  "smtp.gmail.com",
"SMTP_PORT":  587,
"SMTP_USER":  "your@gmail.com",
"SMTP_PASS":  "xxxx xxxx xxxx xxxx",  # 16-char App Password
"SMTP_FROM":  "PolyBot",

Step 3 — Google Sign-In (Optional)

Enables one-click Google OAuth2 login using PKCE (no third-party SDK).

Go to console.cloud.google.com
APIs & Services → Credentials → Create OAuth 2.0 Client ID
Application type: Web Application
Add redirect URI: http://localhost:8765/auth/google/callback
Copy Client ID and Client Secret

"GOOGLE_CLIENT_ID":     "xxxx.apps.googleusercontent.com",
"GOOGLE_CLIENT_SECRET": "GOCSPX-xxxx",

Step 4 — WalletConnect (Optional, for mobile wallets)

Register free at cloud.walletconnect.com
Create new project → Copy Project ID

"WC_PROJECT_ID": "your-project-id-here",

Step 5 — Headless Mode (Optional, for server deployment)

For automated trading without a browser:

"PRIVATE_KEY":    "your64charhexprivatekey",  # no 0x prefix
"WALLET_ADDRESS": "0xYourWalletAddress",
"SIG_TYPE":       0,  # 0=MetaMask/EOA, 1=email/Google proxy, 2=Safe

⚠️ Never commit your private key to GitHub! Use environment variables (see Environment Variables).

🌐 Deploy to Vercel

Important: Vercel is a serverless platform — it is best suited for the dashboard frontend. The bot's background scanning loop requires a persistent process. For full functionality, deploy the Python backend on a VPS or use the Vercel deployment for the UI only with a separate backend.

Option A — Vercel (Frontend Dashboard Only)

This deploys the dashboard as a static/serverless app. Bot scanning runs only during active requests.

Prerequisites

Vercel account (free)
GitHub account
Vercel CLI: npm i -g vercel

Deploy Steps

# 1. Push to GitHub (see GitHub setup below)
git push origin main

# 2. Install Vercel CLI
npm install -g vercel

# 3. Login to Vercel
vercel login

# 4. Deploy from project root
vercel

# Follow prompts:
# - Link to existing project? No
# - Project name: polybot-live
# - Directory: ./
# - Override settings? No

# 5. Deploy to production
vercel --prod

Configure Environment Variables on Vercel

Go to your Vercel project dashboard → Settings → Environment Variables:

Variable	Value	Required
`FLASK_SECRET`	Random 32-char hex string	Yes
`SMTP_USER`	your@gmail.com	Optional
`SMTP_PASS`	Gmail App Password	Optional
`SMTP_HOST`	smtp.gmail.com	Optional
`SMTP_PORT`	587	Optional
`GOOGLE_CLIENT_ID`	xxxx.apps.googleusercontent.com	Optional
`GOOGLE_CLIENT_SECRET`	GOCSPX-xxxx	Optional
`WC_PROJECT_ID`	Your WC Project ID	Optional

Do NOT add PRIVATE_KEY to Vercel env vars unless you fully understand the security implications. Use paper mode on Vercel.

Option B — VPS Deployment (Recommended for Live Trading)

For full bot functionality with continuous scanning:

# On your VPS (Ubuntu/Debian)
sudo apt update && sudo apt install python3-pip nginx -y

# Clone and setup
git clone https://github.com/YOUR_USERNAME/polybot-live.git
cd polybot-live
pip3 install flask flask-cors requests py-clob-client eth-account gunicorn

# Run with gunicorn
gunicorn -w 1 -b 0.0.0.0:8765 --timeout 120 polybot_live:app

# Or run as systemd service (recommended)
sudo nano /etc/systemd/system/polybot.service

polybot.service content:

[Unit]
Description=PolyBot Live Trading Bot
After=network.target

[Service]
User=ubuntu
WorkingDirectory=/home/ubuntu/polybot-live
ExecStart=/usr/bin/python3 /home/ubuntu/polybot-live/polybot_live.py
Restart=always
RestartSec=10

[Install]
WantedBy=multi-user.target

sudo systemctl enable polybot
sudo systemctl start polybot
sudo systemctl status polybot

📁 Project Structure

polybot-live/
├── polybot_live.py      # Main application (Flask backend + dashboard HTML)
├── requirements.txt     # Python dependencies
├── vercel.json          # Vercel deployment configuration
├── .env.example         # Environment variables template
├── .gitignore           # Git ignore rules
└── README.md            # This file

🔒 Environment Variables

Copy .env.example to .env and fill in your values:

cp .env.example .env

Variable	Description	Default
`FLASK_SECRET`	Flask session secret key	Auto-generated
`CAPITAL_USDC`	Starting capital	500.0
`KELLY_FRACTION`	Kelly bet fraction	0.25
`MIN_LIQUIDITY`	Min market liquidity	25000
`SCAN_INTERVAL`	Seconds between scans	8
`START_MODE`	`paper` or `live`	paper
`SMTP_HOST`	SMTP server host	smtp.gmail.com
`SMTP_PORT`	SMTP server port	587
`SMTP_USER`	SMTP username/email	—
`SMTP_PASS`	SMTP password	—
`GOOGLE_CLIENT_ID`	Google OAuth Client ID	—
`GOOGLE_CLIENT_SECRET`	Google OAuth Secret	—
`WC_PROJECT_ID`	WalletConnect Project ID	—
`PRIVATE_KEY`	Wallet private key (headless)	—
`WALLET_ADDRESS`	Wallet address (headless)	—

📡 API Reference

All endpoints are served at http://localhost:8765/api/

Method	Endpoint	Description
GET	`/api/status`	Bot status, connection, balance
GET	`/api/markets`	Fetches and scores live markets
GET	`/api/trades`	Trade history + P&L
GET	`/api/log`	Execution log entries
GET	`/api/positions`	Open positions (requires wallet)
GET	`/api/pending_trades`	Trades awaiting wallet signature
GET	`/api/health`	Health check
POST	`/api/bot/toggle`	Start/stop bot, set mode
POST	`/api/trade`	Execute a single trade
POST	`/api/clear_trades`	Clear trade history
POST	`/api/wallet/auth`	Authenticate with EIP-712 signature
POST	`/api/wallet/disconnect`	Disconnect wallet
GET	`/api/wallet/challenge`	Get auth timestamp challenge
POST	`/api/wallet/order_data`	Build EIP-712 order payload
POST	`/api/wallet/submit_order`	Submit browser-signed order
POST	`/api/wallet/submit_server_order`	Submit server-signed order (email/Google)
POST	`/api/auth/email/send_otp`	Send OTP email
POST	`/api/auth/email/verify_otp`	Verify OTP, establish session
GET	`/api/auth/google/start`	Start Google OAuth PKCE flow
GET	`/api/auth/google/session`	Check Google OAuth session

🧠 How the Trading Algorithm Works

Market Scoring

Each market is scored on a 0-100 scale:

1. Parse outcome prices → derive probability (e.g. YES price of 0.65 = 65% probability)
2. Calculate edge = |probability - 0.5| scaled to thresholds
3. Calculate price impact = $50 / liquidity
4. Apply Kelly Criterion: f* = (p*b - q) / b * KELLY_FRACTION
5. Signal assignment:
   - STRONG BUY: liquidity >$100K, edge ≥5%, impact <2%  (score: 95)
   - OPPORTUNITY: liquidity >$25K, edge ≥4%, impact <3%  (score: 65)
   - MONITOR: everything else                              (score: 10)
   - LOW LIQ: liquidity <$2K                              (score: 2)

Kelly Criterion

Position sizes use fractional Kelly to reduce volatility:

Full Kelly:  f* = (p*b - q) / b
PolyBot:     bet = min(capital * f* * 0.25, capital * 6%)

EIP-712 Auth Flow

1. Frontend requests timestamp from /api/wallet/challenge
2. Signs ClobAuth struct: { address, timestamp, nonce:0, message }
   Domain: { name:"ClobAuthDomain", version:"1", chainId:137 }
   NOTE: No verifyingContract field (Polymarket 401s if present)
3. Backend POSTs signature to clob.polymarket.com/auth/api-key
4. Receives API key/secret for CLOB order signing
5. Orders signed with eth_signTypedData_v4 in browser

⚠️ Important Warnings

LIVE TRADING RISK: Real USDC will be spent. Only trade what you can afford to lose.

PAPER TRADE FIRST: Run in paper mode for at least 2 weeks before going live. Monitor win rate, drawdown, and signal quality.

PRIVATE KEY SECURITY: Never commit your private key to any repository. Use environment variables. Consider using a dedicated trading wallet with limited funds.

NO FINANCIAL ADVICE: This software is for educational purposes. Past performance does not guarantee future results. Prediction markets carry significant risk.

🐛 Troubleshooting

"Auth failed: 401" when connecting wallet

Ensure you're on Polygon network (Chain ID 137) in your wallet
The domain must NOT include verifyingContract — this is intentional per Polymarket spec
Try refreshing and reconnecting

Bot connects but no trades execute

Check market liquidity (must be > $25K by default)
Verify edge threshold (default 4%)
Lower MIN_EDGE or MIN_LIQUIDITY in CONFIG for more signals

Email OTP not received

Check spam/junk folder
Ensure Gmail 2-Step Verification is enabled before creating App Password
Verify SMTP_PASS is the App Password (16 chars), not your Gmail password

WalletConnect QR not showing

Add a valid WC_PROJECT_ID from cloud.walletconnect.com

🤝 Contributing

Fork the repository
Create a feature branch: git checkout -b feature/amazing-feature
Commit your changes: git commit -m 'Add amazing feature'
Push to branch: git push origin feature/amazing-feature
Open a Pull Request

📄 License

MIT License — see LICENSE for details.

🙏 Acknowledgments

Polymarket — prediction market platform
Polymarket CLOB API — trading infrastructure
ethers.js — Ethereum JavaScript library
py-clob-client — Python CLOB client

_{Built with ❤️ for prediction market enthusiasts. Trade responsibly.}

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🤖 PolyBot Live v4.2

📖 Overview

What it does

✨ Features

🔐 Authentication Methods

📊 Trading Engine

🖥️ Dashboard

🔧 Technical Highlights

⚡ Quick Start

Local Development (5 minutes)

🛠️ Setup Guide

Step 1 — Basic Configuration

Step 2 — Email OTP Login (Optional)

Step 3 — Google Sign-In (Optional)

Step 4 — WalletConnect (Optional, for mobile wallets)

Step 5 — Headless Mode (Optional, for server deployment)

🌐 Deploy to Vercel

Option A — Vercel (Frontend Dashboard Only)

Prerequisites

Deploy Steps

Configure Environment Variables on Vercel

Option B — VPS Deployment (Recommended for Live Trading)

📁 Project Structure

🔒 Environment Variables

📡 API Reference

🧠 How the Trading Algorithm Works

Market Scoring

Kelly Criterion

EIP-712 Auth Flow

⚠️ Important Warnings

🐛 Troubleshooting

"Auth failed: 401" when connecting wallet

Bot connects but no trades execute

Email OTP not received

WalletConnect QR not showing

🤝 Contributing

📄 License

🙏 Acknowledgments

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