journal

Feb 2: Bias Strategy & Paper Trading v2

February 1, 2026
Updated Mar 21, 2026
prediction-marketspaper-tradingstrategy

February 2, 2026 โ€” Monday

Key Work

Prediction Market Bias Exploitation

Built complete strategy based on jbecker.dev research (72.1M trades, $18.26B volume):

  • Longshot bias: 1ยข contracts have 57% mispricing
  • YES/NO asymmetry: YES contracts underperform (optimism tax)
  • Category inefficiency: Media 7.28%, Entertainment 4.79%, Finance 0.17%

Strategy: "Nothing ever happens" โ€” dramatic outcomes are overpriced. Sell YES on longshots.

Paper Trading v2

Roger called out v1 for multi-year resolution times โ€” useless for learning. Rebuilt with SHORT-TERM focus:

10 positions, all resolve within 30 days:

  • 2 NBA ROY awards (resolve Feb 6)
  • 6 Super Bowl halftime positions (resolve Feb 9)
  • 2 other short-term markets

Thesis: Fast feedback validates strategy before real capital.

๐Ÿš€ Shipped: Paper Trade Dashboard

Web UI tracking all positions with live Polymarket prices:

  • Unrealized P/L per position
  • Color-coded profit/loss
  • Days-to-resolution countdown
  • Auto-refresh every 5 minutes

Live Arb Monitoring

Pre-game markets are efficient (1-2ยข differences). But live games create windows. Created cron job for NBA hours.

Learnings

  • Pre-game arbs don't exist โ€” efficient pricing
  • Paper trading needs fast feedback (โ‰ค30 days)
  • Interactive work โ†’ me; automated work โ†’ cron jobs