113 lines
3.9 KiB
Markdown
113 lines
3.9 KiB
Markdown
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# Polymarket Automatic Backtesting and Trading Framework
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A comprehensive Python framework for backtesting and live trading on Polymarket prediction markets.
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## Features
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- **API Integration**: Full integration with Polymarket Gamma API, CLOB API, and Data API
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- **Backtesting Engine**: Historical data backtesting with realistic order execution
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- **Live Trading**: Real-time order placement and position management
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- **Strategy Framework**: Easy-to-use base class for developing prediction market strategies
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- **Performance Analytics**: Comprehensive metrics and visualization
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- **Market Data**: Real-time and historical market data fetching
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- **Position Management**: Automatic position tracking and risk management
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## Installation
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```bash
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pip install -r requirements.txt
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```
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Required packages:
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- `requests` - API communication
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- `pandas` - Data manipulation
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- `numpy` - Numerical operations
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- `python-dotenv` - Environment variable management
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- `websocket-client` - Real-time data streaming (optional)
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## Quick Start
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### 1. Setup API Credentials
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Create a `.env` file:
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```env
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POLYMARKET_PRIVATE_KEY=your_private_key_here
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POLYMARKET_CHAIN_ID=137 # Polygon mainnet
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POLYMARKET_SIGNATURE_TYPE=0 # 0=EOA, 1=POLY_PROXY, 2=GNOSIS_SAFE
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POLYMARKET_FUNDER_ADDRESS=your_wallet_address
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```
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### 2. Run a Backtest
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```python
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from polymarket import BacktestEngine
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from strategies import SimpleProbabilityStrategy
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strategy = SimpleProbabilityStrategy()
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engine = BacktestEngine(strategy, start_date="2024-01-01", end_date="2024-12-31")
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results = engine.run()
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engine.generate_report()
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```
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### 3. Live Trading
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```python
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from polymarket import LiveTradingEngine
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from strategies import SimpleProbabilityStrategy
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strategy = SimpleProbabilityStrategy()
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engine = LiveTradingEngine(strategy)
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engine.start()
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```
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## Architecture
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```
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polymarket/
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├── api/ # API client wrappers
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│ ├── gamma_client.py # Market discovery & metadata
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│ ├── clob_client.py # Order placement & orderbook
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│ └── data_client.py # Positions & history
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├── strategies/ # Trading strategies
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│ ├── base_strategy.py # Base class for all strategies
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│ └── examples/ # Example strategies
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├── backtesting/ # Backtesting engine
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│ ├── engine.py # Main backtesting engine
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│ └── data_loader.py # Historical data loading
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├── trading/ # Live trading
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│ ├── engine.py # Live trading engine
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│ └── position_manager.py # Position tracking
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├── analytics/ # Performance analysis
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│ ├── metrics.py # Performance metrics
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│ └── visualization.py # Charts and reports
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└── utils/ # Utilities
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├── config.py # Configuration management
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└── logger.py # Logging utilities
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```
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## Documentation
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### Getting Started
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- [Quick Start Guide](docs/QUICKSTART.md) - Get started in minutes
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- [Example Usage](example_usage.py) - Complete code examples
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### Core Documentation
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- [API Reference](docs/API_REFERENCE.md) - Complete API documentation with rate limits, endpoints, and error handling
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- [Strategy Development Guide](docs/STRATEGY_GUIDE.md) - How to create and test trading strategies
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- [Glossary](docs/GLOSSARY.md) - Complete terminology reference
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### Framework Details
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- [Implementation Notes](IMPLEMENTATION_NOTES.md) - Framework details, limitations, and next steps
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## API Documentation References
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This framework is built based on Polymarket's official API documentation:
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- [Polymarket Developer Docs](https://docs.polymarket.com/quickstart/overview)
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- [Fetching Market Data](https://docs.polymarket.com/quickstart/fetching-data)
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- [Placing Orders](https://docs.polymarket.com/quickstart/first-order)
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## Disclaimer
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This framework is for educational and research purposes. Trading prediction markets involves financial risk. Always test strategies thoroughly in backtesting before live trading.
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