How Auto Trader Works
A high-level overview of how Polyblock's Auto Trader analyzes markets and executes trades. Understanding the process helps you make informed decisions about your automated trading settings.
The Trading Cycle
Auto Trader operates on a cycle aligned with Polymarket's hourly crypto prediction markets. Each hour, new markets open for Bitcoin and Ethereum, asking whether the price will go up or down by the end of that hour.
Hourly Market Timeline
- •Market Opens — At the start of each hour, new prediction markets become available
- •Analysis Phase — Auto Trader analyzes current market conditions and recent price action
- •Decision Point — The AI decides whether to trade UP, DOWN, or skip the market entirely
- •Order Placement — If trading, limit orders are placed at calculated entry prices
- •Market Resolution — At the hour's end, markets resolve based on actual price movement
Market Analysis
Before each potential trade, Auto Trader performs comprehensive market analysis. This includes examining price trends, momentum indicators, and market conditions to inform its decision.
What Gets Analyzed
The AI considers multiple factors including recent price movement, trading volume patterns, technical indicator signals, and overall market sentiment. It weighs these inputs to determine the most probable outcome.
Confidence Levels
Each trading decision includes a confidence assessment. Higher confidence trades may receive priority, while lower confidence situations may result in no trade being placed.
Trade Execution
When Auto Trader decides to enter a position, it uses limit orders rather than market orders. This approach provides better price control and avoids unexpected slippage.
Order Flow
- •Entry Order — A limit buy order is placed at a calculated price point
- •Order Monitoring — The system monitors whether the entry order fills
- •Take-Profit Setup — Once filled, an automatic sell order is placed at 99¢
- •Position Tracking — All positions are tracked in your Auto Trader dashboard
Position Management
Auto Trader manages positions through the market's natural lifecycle. Unlike traditional trading, prediction markets have defined end times when positions automatically resolve.
Resolution Outcomes
- •Take-Profit Triggered — If price reaches 99¢ before resolution, shares are sold for profit
- •Market Resolves Correctly — If your prediction is correct, shares pay out $1.00 each
- •Market Resolves Incorrectly — If your prediction is wrong, shares become worthless
The system automatically tracks outcomes and updates your performance metrics. You can view detailed trade history, win rates, and profit/loss in the Auto Trader dashboard.