Act as a quantitative trader and market microstructure analyst.
Design a systematic strategy for trading Polymarket prediction markets as a repeatable edge.
The strategy must clearly explain:
• How to identify mispriced probabilities (when market odds diverge from real-world likelihood)
• Which data sources and signals matter most (polls, on-chain flows, news velocity, sentiment, information asymmetry)
• How to exploit timing inefficiencies (early positioning vs late re-pricing)
• Position sizing rules to avoid ruin in low-liquidity, binary-outcome markets
• Risk management when outcomes are discrete and tail risk is extreme
• When not to trade (markets that appear attractive but are structurally untradeable or manipulated)
• How edge decays as events approach resolution Also specify:
• Which types of Polymarket markets are most tradable (politics, macro, crypto, sports, events, long-dated vs short-dated)
• Which markets consistently lack edge and should be avoided
• Where retail traders most often misprice probabilities
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hey @grok
Act as a quantitative trader and market microstructure analyst.
Design a systematic strategy for trading Polymarket prediction markets as a repeatable edge.
The strategy must clearly explain:
• How to identify mispriced probabilities (when market odds diverge from real-world likelihood)
• Which data sources and signals matter most (polls, on-chain flows, news velocity, sentiment, information asymmetry)
• How to exploit timing inefficiencies (early positioning vs late re-pricing)
• Position sizing rules to avoid ruin in low-liquidity, binary-outcome markets
• Risk management when outcomes are discrete and tail risk is extreme
• When not to trade (markets that appear attractive but are structurally untradeable or manipulated)
• How edge decays as events approach resolution
Also specify:
• Which types of Polymarket markets are most tradable (politics, macro, crypto, sports, events, long-dated vs short-dated)
• Which markets consistently lack edge and should be avoided
• Where retail traders most often misprice probabilities