Unveiling Polymarket bots: How they generate millions through arbitrage
At Polymarket, a decentralized prediction platform, some are winning big by betting on the future. Discover a strategy for earning without predicting Bitcoin's moves - a robotic method used by traders like "gabagool" to profit from market inefficiencies, analyzed by expert @thejayden.
Translated on December 8, 2025 at 12:03 by Simon Dumoulin
Copié
The Strategy: Binary Market Arbitrage
The strategy focuses on short-term binary markets, such as those on Bitcoin price every 15 minutes. On these markets like Polymarket, you can buy “YES” shares (the price will be above a certain threshold) or “NO” shares (it will be below). At the end, one of the two shares is worth $1, the other $0. In theory, the price of a YES share plus that of a NO share should always equal $1.
But in practice, this isn’t always the case. The market, driven by human emotions, creates temporary imbalances. This is where bots come into play. Their goal isn’t to predict the outcome, but to buy YES and NO shares when their combined cost is less than $1.
It’s a pure arbitrage strategy: if you can buy a pair of shares (one YES and one NO) for, say, $0.97, you’re guaranteed to make a profit of $0.03, because one of the two shares will inevitably be worth $1 at the end.
The “Gabagool” Method in Action
The strategy, as analyzed by @thejayden, is disarmingly simple:
Buy low: The bot constantly scans markets and buys YES and NO shares only when they are “cheap,” meaning when their price is below their expected value.
Balance positions: The goal is to hold roughly equal numbers of YES and NO shares. This neutralizes the risk tied to the event’s outcome.
Lock in profit: Once the average cost of a pair (one YES share + one NO share) is less than $1, the profit is mathematically guaranteed. All that’s left is to wait for the 15 minutes to end and collect.
Source: Polymarket
In a concrete example, the trader “gabagool” invested approximately $1,237 to acquire a balanced basket of YES and NO shares, with a cost per pair of $0.966. At the end of the 15 minutes, his net gain was $58.52, representing a return of nearly 5% in half an hour.
Repeated on a large scale across dozens of markets simultaneously, this strategy allows for accumulating considerable gains, transforming small arbitrage opportunities into millions of dollars in profits.
Why Humans Can’t Compete
This approach is nearly impossible to replicate manually. It requires constant monitoring, real-time calculations, and near-instantaneous execution, tasks for which bots are infinitely superior. They have no emotions, aren’t subject to FOMO (fear of missing out), and can operate 24/7.
These bots aren’t oracles, they’re simply ultra-fast calculators exploiting the inefficiency of human-driven markets. They remind us of a fundamental lesson in decentralized finance: in an open and programmable ecosystem, the advantage doesn’t go to the one who best predicts the future, but to the one who most efficiently exploits the present.
While human traders bet on what might happen, bots capitalize on what’s already there: the small pricing errors that, put together, build empires.
The Pionex exchange offers a free bot that delivers the same returns: The Hedging Bot. Test it now by visiting the Pionex website and searching for Hedging bot in the “Bot” tab:
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
DISCLAIMER
This article is for informational purposes only and should not be considered as investment advice. Trading cryptocurrencies involves risks, and it is important not to invest more than you can afford to lose.
InvestX is not responsible for the quality of the products or services presented on this page and cannot be held liable, directly or indirectly, for any damage or loss caused by the use of any product or service featured in this article. Investments in crypto assets are inherently risky; readers should conduct their own research before taking any action and invest only within their financial means. This article does not constitute investment advice.
Risk Warning : Trading financial instruments and/or cryptocurrencies carries a high level of risk, including the possibility of losing all or part of your investment. It may not be suitable for all investors. Cryptocurrency prices are highly volatile and can be influenced by external factors such as financial, regulatory, or political events. Margin trading increases financial risks.
CFDs (Contracts for Difference) are complex instruments with a high risk of rapid capital loss due to leverage. Between 74% and 89% of retail investor accounts lose money when trading CFDs. You should assess whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Before engaging in financial or cryptocurrency trading, you must be fully informed about the associated risks and fees, carefully evaluate your investment objectives, level of experience, and risk tolerance, and seek professional advice if needed. InvestX.fr and the InvestX application may provide general market commentary, which does not constitute investment advice and should not be interpreted as such. Please consult an independent financial advisor for any investment-related questions. InvestX.fr disclaims any liability for errors, misinvestments, inaccuracies, or omissions and does not guarantee the accuracy or completeness of the information, texts, graphics, links, or other materials provided.
Some of the partners featured on this site may not be regulated in your country. It is your responsibility to verify the compliance of these services with local regulations before using them.
Get 6200 USDT with Bitget ! 🔥
Don't miss out on this offer !
Create your account now to unlock this exclusive reward