Case Study
Live

Hedge

Automated arbitrage detection for prediction markets

A Polymarket arbitrage scanner that automatically detects price discrepancies across prediction market outcomes, offering three distinct strategy modes for different risk appetites.

Hedge
Year

2025

Stack
Next.jsPolymarket APIWebSocketCSS Modules
Tags
TradingArbitrageAutomationPolymarket

The Math Doesn't Lie

Prediction markets are beautiful in theory: prices reflect probabilities. But in practice? Prices misprice. Outcomes don't add up to 100%. And when they don't — that's free money.

Hedge finds those moments. Every 60 seconds.

Arbitrage is when you can buy all possible outcomes for less than the guaranteed payout. It's not speculation — it's math.

Pick Your Risk

Not everyone trades the same way. Some want guaranteed small wins. Others want to swing for the fences. Hedge gives you three modes — each with a different risk/reward profile.

No mode is "better." They're different tools for different situations.

Strategy Breakdown
StrategyReturnsWin RateStyle
Safe Hedge0–5%~80%Buy both sides, guaranteed small profit
Quick Scalp7–10%~67%Fast $5 trades on short-duration markets
Moon Shot~24%~60%Momentum-based, higher risk/reward

What Happens Under the Hood

Every minute, Hedge scans active Polymarket markets. It calculates the combined cost of all outcomes. When the total drops below the payout threshold — factoring in fees — it flags the opportunity.

For momentum trades, it tracks price velocity and volume spikes to identify high-conviction directional bets.

Scan → Evaluate → Alert

Polymarket API
Price Scanner
Strategy Filter
Risk Check
Opportunity Alert
Portfolio Tracking
Real-time balance updates
Per-trade P&L breakdown
Full trade history log
Configurable $25–$500 budgets
Scan Config
Interval:  60 seconds
Markets:   All active
Min edge:  0.5% after fees
Max stake: User-configured