profitable-expert-advisor/polymarket/README.md

Polymarket Automatic Backtesting and Trading Framework

A comprehensive Python framework for backtesting and live trading on Polymarket prediction markets.

Features

• API Integration: Full integration with Polymarket Gamma API, CLOB API, and Data API
• Backtesting Engine: Historical data backtesting with realistic order execution
• Live Trading: Real-time order placement and position management
• Strategy Framework: Easy-to-use base class for developing prediction market strategies
• Performance Analytics: Comprehensive metrics and visualization
• Market Data: Real-time and historical market data fetching
• Position Management: Automatic position tracking and risk management

Installation

pip install -r requirements.txt

Required packages:

• requests - API communication
• pandas - Data manipulation
• numpy - Numerical operations
• python-dotenv - Environment variable management
• websocket-client - Real-time data streaming (optional)

Quick Start

1. Setup API Credentials

Create a .env file:

POLYMARKET_PRIVATE_KEY=your_private_key_here
POLYMARKET_CHAIN_ID=137  # Polygon mainnet
POLYMARKET_SIGNATURE_TYPE=0  # 0=EOA, 1=POLY_PROXY, 2=GNOSIS_SAFE
POLYMARKET_FUNDER_ADDRESS=your_wallet_address

2. Run a Backtest

from polymarket import BacktestEngine
from strategies import SimpleProbabilityStrategy

strategy = SimpleProbabilityStrategy()
engine = BacktestEngine(strategy, start_date="2024-01-01", end_date="2024-12-31")
results = engine.run()
engine.generate_report()

3. Live Trading

from polymarket import LiveTradingEngine
from strategies import SimpleProbabilityStrategy

strategy = SimpleProbabilityStrategy()
engine = LiveTradingEngine(strategy)
engine.start()

Architecture

polymarket/
├── api/              # API client wrappers
│   ├── gamma_client.py      # Market discovery & metadata
│   ├── clob_client.py        # Order placement & orderbook
│   └── data_client.py        # Positions & history
├── strategies/       # Trading strategies
│   ├── base_strategy.py      # Base class for all strategies
│   └── examples/             # Example strategies
├── backtesting/     # Backtesting engine
│   ├── engine.py            # Main backtesting engine
│   └── data_loader.py       # Historical data loading
├── trading/         # Live trading
│   ├── engine.py            # Live trading engine
│   └── position_manager.py  # Position tracking
├── analytics/       # Performance analysis
│   ├── metrics.py           # Performance metrics
│   └── visualization.py     # Charts and reports
└── utils/          # Utilities
    ├── config.py           # Configuration management
    └── logger.py           # Logging utilities

Documentation

Getting Started

• Quick Start Guide - Get started in minutes
• Example Usage - Complete code examples

Core Documentation

• API Reference - Complete API documentation with rate limits, endpoints, and error handling
• Strategy Development Guide - How to create and test trading strategies
• Glossary - Complete terminology reference

Framework Details

• Implementation Notes - Framework details, limitations, and next steps

API Documentation References

This framework is built based on Polymarket's official API documentation:

• Polymarket Developer Docs
• Fetching Market Data
• Placing Orders

Disclaimer

This framework is for educational and research purposes. Trading prediction markets involves financial risk. Always test strategies thoroughly in backtesting before live trading.