# Hedge

Spot price gaps across prediction markets.

Scan Polymarket outcomes for price discrepancies and compare opportunities across three strategy modes. Live market data helps you inspect each setup.

- Author: Mohammed Husamuddin
- Case study: https://projects.ihusam.tech/projects/hedge
- Status: live
- Year: 2025
- Topics: Trading, Arbitrage, Automation, Polymarket
- Technology: Next.js, Polymarket API, WebSocket, CSS Modules
- Project URL: https://hedge.ihusam.tech/

## 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
| Strategy | Returns | Win Rate | Style |
| --- | --- | --- | --- |
| Safe Hedge | 0–5% | ~80% | Buy both sides, guaranteed small profit |
| Quick Scalp | 7–10% | ~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
```