A former quantum from Jump Trading sent me the source code of the bot
he said they fired him
for running it from the work server
when i opened the code i didnโt sleep til 4 am
gist of the code:
bot holds two websocket connections
simultaneously direct feed from Binance spot orderbook and Polymarket CLOB API
BTC price on Binance updates ~200ms
polymarket recalculates contracts with 3-7s lag
in this window bot calculates implied probability
compares spot divergence with contract price
over 8% - enters
btc does +0.4% on spot up contract at 53ยข
model probability - 87%
bot buys
in 5 mins contract resolves at $1
20-50% per trade 100+ times a day
$284,719 per month off $1,300 bankroll
this isnโt prediction
itโs latency arb between CEX and prediction market
no need for $50k colocation $20 vps and clean code suffices
@BecauseCulture@BoringBiz_ In most high finance you could make that argument, but I bet you could count the number of C students at millennium or rentech combined on one hand
ladies, this is the best time to marry me.
iโm about to become rich, but if you marry me now you were with me before I made it. which makes you much more attractive.
if you wait until i get rich, iโll have too many options + will wonder if you only want me for my money.
hurry.
@BlackSwan_ptf Man's never heard of risk neutral probability. The probability in the binomial model is a function of u,d,r, not actual probability of the stock price going up. This question is actually about interest rates