What happens if you flood the market with a bunch of implausible bets like "sun won't rise tomorrow"? Sure, you might try to filter that out with some sort of "seasoning" period (ie. don't buy new markets), but then that means more time for arbitrageurs to correctly price the market, depriving you of any price advantage you might have had.
Except that the mere existence of the market with the question posed for people to consider, probably activates the availability heuristic[1], causing people to overestimate the likelihood.
The author also noted:
> yes this has to buy below 0.73 long term, the bot has a configurable ceiling set at 0.65 and checks for new markets buying closer to .5
https://x.com/sterlingcrispin/status/2043685362812461436
For this question I'm working on https://polygains.com
What other question would you like to be backtested? This one is fairly easy
For every bucket of probability, what is the chance it resolves correctly?
For example, for markets that are between 60 and 70, is it the case that around 65% of them resolve to yes?
I guess you want to take a certain time before out finishes, so focus on sports.
What happens if you flood the market with a bunch of implausible bets like "sun won't rise tomorrow"? Sure, you might try to filter that out with some sort of "seasoning" period (ie. don't buy new markets), but then that means more time for arbitrageurs to correctly price the market, depriving you of any price advantage you might have had.
There are quite a few of those, my favourite: https://polymarket.com/event/will-jesus-christ-return-before...
If you put all your money on no, you get 4% if you win, and if Jesus comes back and you lose, money won't matter.
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jane street is always hiring!
> What happens if you flood the market with a bunch of implausible bets like "sun won't rise tomorrow"?
Who does "you" refer to in this sentence? Polymarket itself?
I'm pretty sure if Polymarket itself decides it wants to screw you, you're gonna lose no natter what your strategy is.
Of course, once you add a condition like that, the probabilities change....
That presumes that there are people selling into new markets at 0.5 without thinking about the actual odds.
Except that the mere existence of the market with the question posed for people to consider, probably activates the availability heuristic[1], causing people to overestimate the likelihood.
[1] https://philopedia.org/topics/availability-heuristic/
"Nothing ever happens"
Benjamin, huh?