> For the complete documentation index, see [llms.txt](https://docs.dextrabot.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.dextrabot.com/dextrabot/polymarket-bots/polymarket-pendulum-bot.md).

# Polymarket Pendulum Bot

## Pendulum

Pendulum is an automated trading bot for [Polymarket](https://polymarket.com) **Sports and Esports** markets. It watches live prices on a binary market and buys whichever outcome becomes cheap, then layers in more positions each time the price swings to the other side — aiming to profit when the market resolves.

{% hint style="info" %}
**Only Sports and Esports markets are supported.**\
The event URL must contain `/sports` or `/esports`.
{% endhint %}

\---

### How It Works

Every sports/esports market has two outcomes (e.g. *Team A Wins* / *Team A Loses*). Their prices always add up to \~100¢. Pendulum follows a simple cycle:

1. **Entry**\
   When one outcome's price falls inside your Entry Range, the bot buys it
2. **Reversal**\
   When the price swings to the other side past your Reversal Threshold, the bot buys that side too
3. **Repeat**\
   This continues up to your Max Reversal limit, accumulating shares on both sides
4. **Exit**\
   When the market resolves, the winning side pays $1.00/share; your profit is the payout minus total cost

***

### Setup

1. Open the Pendulum page and connect your wallet
2. Enter your **Private Key** and **Funder Address** in the Credentials panel
3. Paste a Polymarket Sports or Esports event URL and click **Fetch**
4. Select the sub-market you want to trade
5. Adjust settings (or leave defaults), then click **Start**

***

### Parameters

#### Entry Range

| Field             | Default | Description                                                  |
| ----------------- | ------- | ------------------------------------------------------------ |
| **Entry Min (¢)** | `50`    | Bot only enters if an outcome is priced **at or above** this |
| **Entry Max (¢)** | `65`    | Bot only enters if an outcome is priced **at or below** this |

***

#### Reversal Settings

| Field              | Default | Description                                                                                                                                                                                  |
| ------------------ | ------- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |
| **Reversal (¢)**   | `10`    | How many cents the opposite outcome must rise past the trigger before the bot buys it. Can be **Fixed** (same value every time) or **Custom** (comma-separated per level, e.g. `10,8,6,5,4`) |
| **Max Reversal**   | `5`     | Maximum number of reversals to execute. After this, the bot holds and waits for resolution                                                                                                   |
| **Skip Reversals** | `0`     | Observe this many reversals without buying before the bot starts placing real orders                                                                                                         |

***

#### Profit & Safety

| Field             | Default | Description                                                                                                                   |
| ----------------- | ------- | ----------------------------------------------------------------------------------------------------------------------------- |
| **Target ($)**    | `2.00`  | Dollar profit the bot aims for if one side wins. Determines how many shares are bought at each level                          |
| **Scaler**        | `1.2`   | Multiplies the profit target on each deeper reversal (e.g. $2 → $2.40 → $2.88…). Higher = bigger positions on later reversals |
| **Breakeven Rev** | off     | Reversal number at which the bot stops aiming for profit and just tries to recover its total cost                             |
| **MPD (¢)**       | `5`     | Minimum Price Distance — offset added to the trigger price when placing orders, to improve fill rate                          |
| **Safety (¢)**    | off     | If either outcome hits this price, the bot immediately sells everything on both sides. Set to 0 to disable                    |

***

#### Auto-merge

When enabled, after each reversal the bot converts equal quantities of both outcome tokens back into USDC on-chain. Since one UP + one DOWN share is always worth $1.00, this frees up capital between reversals.

***

### Levels Table

Before starting, the **Levels table** shows a preview of every planned position — price, side, shares, cost, and estimated profit at each reversal level. Use it to review your total exposure before committing.


---

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