Amid the growing popularity of peer-to-peer bookmaker Polymarket, bots operating on the platform are recording massive profits in very short periods.
In one such instance, a bot turned an initial balance of $63 into about $131,000 within a month by exploiting volatility and liquidity inefficiencies in Bitcoin (BTC)-related prediction markets.
Wallet activity indicates the gains came from automation and execution strategy rather than directional price calls.
How the bot executes successful trades
The bot enters both sides of a market early, when uncertainty and bid-ask spreads are high, buying both “Yes” and “No” positions and trading rapidly. This effectively turns it into a market maker, capturing small, repeatable profits with limited directional risk.
As price direction becomes clearer minutes after launch, the bot abandons the losing side and reallocates capital into the winning outcome. Transaction data shows large, repeated purchases, often in the hundreds of shares, building positions into the thousands as prices continue to rise.
At the same time, a major driver of the outsized returns is the accumulation of heavily discounted positions during sharp volatility swings.
When one side of a market falls to between $0.01 and $0.03, the bot increases exposure, risking little if prices stay flat but capturing gains of more than 30 times the entry cost when volatility reverses.
Data also identified a second automated account using the same strategy, which recovered from about $82 to generate roughly $67,000 in profit in around three weeks. The account showed extreme trading intensity, executing about 524 trades in 10 minutes, consistent with fully automated market-making.
Across both accounts, win rates were around 95% to 96%, with profits concentrated during periods of heightened Bitcoin volatility rather than long-term price trends, highlighting how algorithmic strategies are exploiting short-term inefficiencies on prediction markets such as Polymarket.
This strategy was also highlighted in a previous Finbold report, which indicated that another trading bot turned $313 into $438,000 on Polymarket within a month.
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