Automated bots and AI dominate Polymarket’s short-term markets

Beincrypto reports that algorithmic and AI-driven bots are dominating Polymarket’s ultra-short-term crypto prediction markets by exploiting latency, arbitrage and mispriced probabilities, turning small capital into millions in profit.

Analysts highlighted several examples: Dexter’s Lab said a bot reportedly turned $313 into $414,000 in one month by trading BTC, ETH and SOL 15-minute up/down markets with $4,000–$5,000 bets and a claimed 98% win rate, exploiting brief lags where market prices lag confirmed spot momentum. Another profile credited a bot with $2.2 million in two months using ensemble probability models trained on news and social data that are continually retrained. Other tactics described include front-running thin liquidity, buying both sides when combined prices dip below $1, and thousands of micro-trades that produce steady, linear PnL curves.

Human traders are reported to lag behind: comparisons showed bots achieving about $206,000 in profit with over an 85% win rate versus roughly $100,000 for humans, with oversized bets, poor risk management and late entries cited as common problems. The rise of automation has prompted debate over fairness and whether these strategies are a temporary exploit or a lasting “new meta,” and observers say traders must adopt discipline, probability-based entries and capped exposure or risk a structural disadvantage.

Key Topics

Crypto, Polymarket, Prediction Markets, Ai, High-frequency Trading, Arbitrage