The open-source Hydra reference bot for Polymarket trading.
Polymarket Bot
Hydra ships a fully functional open-source trading bot for Polymarket that plugs into the Hydra API out of the box. It's a working proof of concept and a starting point for building your own signal-driven trading strategies.
What It Does
The bot connects to the Hydra WebSocket stream and monitors incoming signals. When a signal fires, the correlation engine searches for open Polymarket markets relevant to that event — and flags or acts on them based on your configuration.
Hydra signals stream
↓
Correlation engine
↓ (matches signal to open Polymarket markets)
Strategy layer ← your alpha goes here
↓
Position sizing
↓
Polymarket CLOB execution
Key Features
- Signal → market correlation — maps Hydra signals to relevant open markets by topic, geography, and tags
- Market discovery — continuously indexes open Polymarket markets and their current positions
- Order execution — places limit and market orders against Polymarket's CLOB
- Position sizing — Kelly criterion sizing with configurable risk parameters
- Modular strategy layer — swap in your own signal weights, filters, and edge logic
- Dry run mode — simulate trades without executing, log what would have been placed
What It Is Not
The bot handles the plumbing — API connection, market discovery, execution infrastructure, correlation logic. It does not have an alpha edge built in. The signal weights, filtering rules, and position sizing parameters are intentionally left open for you to configure.
You bring the edge. The bot provides the pipes.
Prerequisites
- Hydra API key with at minimum the
signalsandmarketsstreams - A Polymarket account with API access
- Node.js 20+ or Python 3.11+
Quick Start
git clone https://github.com/hydra-app/polymarket-bot
cd polymarket-bot
npm install
cp .env.example .env
# fill in HYDRA_JWT and POLYMARKET_API_KEY
npm run bot
See Setup & Configuration for full configuration details.