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Grok Bot Nets $10,774 in Three Weeks by Running High-Frequency Arbitrage on Polymarket

  • AI Agents
  • Foundation Models
  • Finance

An autonomous xAI bot executed 6,692 trades across Polymarket's 5-minute Bitcoin markets over 23 days, netting $10,774 with a 44% win rate and positive returns on 20 of 21 trading days. The bot, powered by Grok, exploited a straightforward arbitrage inefficiency: buying both YES and NO outcomes when their combined price fell below $1.00, locking in guaranteed profit upon redemption regardless of which outcome resolved. By targeting the cheapest side of volatile 5-minute markets and accumulating thousands of microscopically thin edges, the system demonstrated how algorithmic trading dominates modern prediction markets where structural inefficiencies persist despite high automation.

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