polymarket-paper-trader

name

polymarket-paper-trader

description

Use this skill whenever the user wants to paper trade, simulate trades, virtual trading, demo mode, practice trading, backtest strategies, test strategy performance, use paper money, manage a virtual portfolio, track simulated P&L, or do risk-free trading on Polymarket prediction markets. Also use when the user asks about their portfolio, positions, trade history, or performance report for paper trading. This is the core trading engine — it executes simulated trades against real live Polymarket prices with zero financial risk.

Polymarket Paper Trading Engine

Simulate trades against live Polymarket prices with zero financial risk. No wallet, no keys, no money at stake. Portfolio persists across sessions in SQLite.

Quick Start

Initialize a Portfolio

python ~/.agents/skills/polymarket-paper-trader/scripts/paper_engine.py --action init --balance 1000

Buy Shares (Market Order)

# Buy $50 of YES shares using live order book prices
python ~/.agents/skills/polymarket-paper-trader/scripts/paper_engine.py \
  --action buy --token TOKEN_ID --side YES --size 50 \
  --reason "High confidence based on news analysis"

Buy Shares (Limit Order)

python ~/.agents/skills/polymarket-paper-trader/scripts/paper_engine.py \
  --action buy --token TOKEN_ID --side YES --size 50 --price 0.45 \
  --reason "Value buy below fair price estimate"

Check Portfolio

python ~/.agents/skills/polymarket-paper-trader/scripts/paper_engine.py --action portfolio
python ~/.agents/skills/polymarket-paper-trader/scripts/paper_engine.py --action portfolio --json

Close a Position

python ~/.agents/skills/polymarket-paper-trader/scripts/paper_engine.py \
  --action close --token TOKEN_ID --reason "Taking profit"

View Trade History

python ~/.agents/skills/polymarket-paper-trader/scripts/paper_engine.py --action trades

Performance Report

python ~/.agents/skills/polymarket-paper-trader/scripts/portfolio_report.py
python ~/.agents/skills/polymarket-paper-trader/scripts/portfolio_report.py --json

Portfolio Health Check (Session Start)

python ~/.agents/skills/polymarket-paper-trader/scripts/health_check.py
python ~/.agents/skills/polymarket-paper-trader/scripts/health_check.py --json

Runs the full session-start workflow in one command: loads portfolio, fetches live prices, updates DB, calculates drawdown, checks stop losses, evaluates all risk limits. Returns GREEN/YELLOW/RED status.

Finding Token IDs

Token IDs come from the Polymarket Gamma API. To find them for a market:

# Search for markets
curl -s 'https://gamma-api.polymarket.com/markets?limit=5&active=true&closed=false&order=volume24hr&ascending=false' | python3 -c "
import sys, json
for m in json.load(sys.stdin):
    tokens = json.loads(m['clobTokenIds'])
    prices = json.loads(m['outcomePrices'])
    print(f\"{m['question'][:60]}\")
    print(f\"  YES token: {tokens[0]}  price: {prices[0]}\")
    print(f\"  NO  token: {tokens[1]}  price: {prices[1]}\")
    print()
"

Or use the polymarket-scanner skill to discover markets first.

Execute Strategy Recommendations

The executor takes structured recommendations from strategy advisors:

python ~/.agents/skills/polymarket-paper-trader/scripts/execute_paper.py \
  --recommendation '{
    "token_id": "TOKEN_ID",
    "side": "YES",
    "action": "BUY",
    "size_usd": 50,
    "confidence": 0.75,
    "reasoning": "Momentum signal detected",
    "strategy": "momentum"
  }'

Dry run (validates without executing):

python ~/.agents/skills/polymarket-paper-trader/scripts/execute_paper.py \
  --recommendation '{"token_id":"TOKEN","side":"YES","size_usd":50}' --dry-run

Risk Rules (Built In)

Rule	Default	Purpose
Max position size	10% of portfolio	No single bet too large
Max drawdown	30%	Stop trading if losing too much
Max concurrent positions	5	Diversification
Daily loss limit	5% of starting balance	Prevent tilt
Max single market exposure	20% of portfolio	No concentration
Human approval threshold	15% of portfolio	Large trades need confirmation

Override with --force flag or by passing custom risk_config on init.

How It Works

1. Real prices: Fetches live order book from clob.polymarket.com
2. Book walking: Market orders simulate fills by walking the order book (not mid-price)
3. Fee modeling: Default 0% (most markets), configurable for crypto markets
4. SQLite persistence: Portfolio at ~/.polymarket-paper/portfolio.db
5. Risk engine: Every trade validated against configurable risk rules

API Reference

All scripts support --json for machine-readable output. Key Python functions:

• paper_engine.init_portfolio(balance, name) — Create portfolio
• paper_engine.place_order(token_id, side, size, price) — Execute trade
• paper_engine.close_position(token_id) — Close position
• paper_engine.get_portfolio(name) — Get current state
• paper_engine.get_trades(name) — Trade history
• execute_paper.execute_recommendation(rec) — Execute strategy signal
• portfolio_report.generate_report(name) — Full analytics

See references/risk-rules.md for detailed risk parameters and references/paper-trading-guide.md for the full paper trading guide.