Karpathy's Autoresearch On My AI Polymarket Trading Bot

· Source: All About AI · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Software Development & Engineering, Data Science & Analytics · Depth: Advanced, long

Summary

This content details the development and live testing of an automated arbitrage trading bot on PolyMarket, inspired by Andrej Karpathy's auto-research project. The bot operates within a "trading auto-research loop," using a GitHub repository to evolve its strategy. A markdown file, "training program," defines experiment logic, including how strategies are chosen, run, and evaluated. The system updates strategy code, creates new experiments, and tests them on PolyMarket's five-minute Bitcoin up/down market in dry mode, with a brief live test demonstrating a profit of $2 over approximately 20 minutes. Weak experiments are discarded, while improvements are kept, with a confirmation step for strong results due to data noise. The bot successfully executed five arbitrage trades, maintaining a 100% win rate during the live demonstration.

Key takeaway

For AI Engineers developing automated trading systems, consider adapting an auto-research loop to autonomously evolve and optimize your strategies. By defining experiment logic in a "training program" and using GitHub for code evolution and memory, you can continuously improve bot performance and identify profitable arbitrage opportunities, as demonstrated by the $2 profit in 20 minutes.

Key insights

An auto-research loop can autonomously evolve trading strategies for arbitrage bots.

Principles

Method

An agent updates strategy code based on a markdown-defined "training program," tests it in a live environment, evaluates results, and iteratively refines the strategy, committing changes to a GitHub repository.

In practice

Topics

Best for: AI Engineer, Machine Learning Engineer, Software Engineer

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Editorial summary, takeaway, and curation by AIssential. Original article published by All About AI.