Skip to main content
← Back to Docs
πŸ€–Bot Builder

Bot Strategy Templates

EV Follower, ARB Hunter, Whale Copier, and more

Predite ships with 6 pre-built strategy templates, each tuned to a different market behavior. This doc explains what each one does, when it works best, and the key parameters to configure.

## 1. EV Follower (Signal)

What it does: Scans for markets where the AI edge exceeds your threshold and buys the favored direction.
Best for: Catching mispriced markets early. This is the bread-and-butter strategy and our recommended starter.
How it works: - Every 15 minutes, the bot checks all active markets matching your category and platform filters. - For each market, it computes the current AI edge. - If edge β‰₯ min_edge AND confidence β‰₯ min_confidence AND liquidity is sufficient, the bot places a market order. - Position size = min(max_position, Kelly_size Γ— bankroll, available_liquidity). - Stop-loss and take-profit trigger close orders.
Parameters: - Min edge (pp): 5-20. Higher = fewer but better-quality trades. - Min confidence: 50-95. Higher = more selective. - Max position ($): $25-1000. Start small. - Stop-loss (%): 15-50. Tighter = exits losses sooner but cuts good trades. - Take-profit (%): 30-100. How much profit before locking in. - Daily trade limit: 1-50.
Expected performance: 55-65% win rate, 8-15% monthly P&L on well-tuned settings (historical backtest).

## 2. ARB Hunter (Arbitrage)

What it does: Detects cross-platform spreads on matched markets and executes both sides to lock in a risk-free profit.
Best for: Markets that exist on both Polymarket and Kalshi with different prices. Arbitrage opportunities are rare but pay reliably when they happen.
How it works: - Predite's matcher identifies markets representing the same event across platforms (e.g., "Will Fed cut rates in June 2026" on both Polymarket and Kalshi). - The bot computes the implied spread: P(YES on Polymarket) + P(NO on Kalshi). If this is less than $1.00 minus your min profit threshold, there's arbitrage. - The bot places both sides simultaneously (or as close to simultaneous as the APIs allow). - Holding until resolution guarantees a payout of $1.00 total, locking in the difference as profit.
Parameters: - Min spread (%): 1-10. The minimum guaranteed profit per arb. 2-3% is realistic; 5%+ is rare. - Max position per arb ($): how much to commit per opportunity. $200-1000 is reasonable. - Total capital reserved: how much of your bankroll the bot can have tied up in arbs at once.
Expected performance: Lower volume (10-30 trades/month) but very high win rate (95%+). Locked-in profits don't require resolution to be correct.
Risks: Execution timing β€” if one side fills and the other doesn't, you're naked. The bot monitors and unwinds, but slippage can eat the spread.

## 3. Whale Copier (Copy)

What it does: Mirrors trades from wallets you specify in real-time.
Best for: Following established profitable traders without manually monitoring their activity.
How it works: - You provide a list of wallet addresses to follow. - The bot watches Polymarket on-chain activity for those wallets. - When a followed wallet trades, the bot replicates the trade in your account, scaled by your copy %. - Stop-losses fire based on your config (not the followed wallet's).
Parameters: - Wallets: list of addresses. 1-10 wallets recommended. - Copy %: 5-100. What fraction of their size you replicate. - Max size per trade ($): hard cap regardless of their size. - Min size per trade ($): skip their tiny exploratory positions.
Expected performance: Mirrors the followed wallet's P&L minus slippage. If they make 20%/month, you'll make ~15-18% after fees and delays.

## 4. Mean Reversion (Quant)

What it does: Fades extreme price movements, betting that overreactions will revert toward the prior price.
Best for: Liquid markets that experience sudden 10+ point swings due to single news items or viral posts.
How it works: - The bot tracks recent price history (last 1 hour) for each market. - If the current price has moved >= deviation_threshold from the 1-hour mean, AND volume has spiked, the bot bets against the move. - Example: market at 50%, news drops, market spikes to 75% on heavy volume. Bot bets NO if the AI consensus still says ~55%. - Position closes when price reverts toward the mean (take-profit) or moves further against (stop-loss).
Parameters: - Deviation threshold (pp): 8-25. How much the price must have moved to trigger. - Volume spike multiplier: 2-10x. Recent volume must exceed normal by this multiple. - AI confidence threshold: 60+ (otherwise you're just guessing). - Max hold time: 1-12 hours.
Expected performance: Moderate win rate (55-60%) with above-average winners. Sensitive to false signals from genuinely big news.

## 5. News Reactor (News)

What it does: Trades on sentiment shifts from the integrated news feed.
Best for: Fast-moving events where being first to react beats analytical accuracy.
How it works: - The bot subscribes to news headlines from Finnhub and other sources. - For each headline, the AI assigns a sentiment score (-100 to +100) and a topic. - The bot finds markets matching the topic and trades the direction predicted by sentiment. - Example: "Fed signals June rate cut more likely" β†’ bot buys YES on the "Fed cuts in June" market within 60 seconds of the headline.
Parameters: - Min sentiment magnitude: 50+ (avoid weak signals). - Topics: which categories to react to (Fed, earnings, geopolitics, etc.). - Max trade size: $50-500. - Max delay (seconds): how stale a headline can be before the bot ignores it. Default 90s.
Expected performance: Extremely variable. Works well during high-volatility news periods, can lose money during quiet times when sentiment models misfire.

## 6. Calendar Bot (Macro)

What it does: Positions before scheduled events using historical patterns.
Best for: Predictable catalysts β€” Fed meetings, earnings, elections, scheduled economic data.
How it works: - The bot reads the integrated economic calendar. - For each upcoming event, it looks up historical pattern of pre/post-event price movement. - It places positions 2-48 hours before the event based on the historical edge. - Positions close right before the event (avoiding event-window volatility) or right after (capturing the typical post-event drift).
Parameters: - Event types: Fed, CPI, jobs report, earnings, etc. - Lead time (hours): how far before event to enter. - Hold through event (yes/no): risky but higher-EV if the model has a directional edge. - Min historical edge (pp): only act on patterns with >= this much historical edge.
Expected performance: Steady but modest. 5-8% per month is typical when well-tuned.

## Combining Strategies

The Bot plan allows up to 5 active bots simultaneously. A reasonable diversified portfolio:

- 1 Γ— EV Follower (broad signal capture)

  • β€’1 Γ— ARB Hunter (low-correlation income)
  • β€’1 Γ— Whale Copier following 1-2 trusted wallets
  • β€’1 Γ— Mean Reversion in highly liquid markets
  • β€’1 Γ— Calendar Bot for scheduled events

This gives you exposure to multiple alpha sources. Avoid running 3 EV Followers with slightly different parameters β€” they'll fight for the same trades.

## Related Docs

- [Bot Builder Overview](/docs/bot-overview)

  • β€’[Bot Execution Engine](/docs/bot-execution)
  • β€’[Building Your First Bot (guide)](/guides/building-first-bot)
← All Documentation
Bot Strategy Templates | Predite