A new approach to copy trading on Polymarket is gaining attention as traders shift from following individual "smart" traders to creating topic-based wallet baskets. After analyzing data from approximately 1.3 million Polymarket wallets, it was found that relying on a single trader can be risky due to potential performance drift. Instead, traders are now forming baskets of wallets based on specific topics, such as geopolitics, and applying strict criteria to filter out bots and ensure recent performance is prioritized over historical data.
The strategy involves waiting for over 80% of the wallets in a basket to enter the same outcome, ensuring purchases occur within a tight price band, and only acting if the market spread remains favorable. This method aims to capture real-time trading consensus rather than following individual personalities, and is currently being tested through paper trading to minimize bias.
Innovative Strategy Emerges for Polymarket Copy Trading
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