Looking at just the odds isn’t enough. How traders gain an edge on prediction markets
Gaining an edge on prediction markets requires speed and skills beyond just reading the odds on platforms like Kalshi and Polymarket.
In the rapidly growing world of prediction markets, traders are finding ways to gain an edge beyond simply analyzing the odds. Logan Sudeith, a 26-year-old trader, credits his success to tools such as an antenna to watch commercials during the Super Bowl and quick access to trading markets. With over 100,000 active markets on platforms like Polymarket and Kalshi, traders rely on assistants like AI bots and customized workflows to stay ahead.
Some even turn to advanced technology offered by platforms themselves, while others build their own tools from scratch. Reading the news remains a crucial skill, with traders like Kenneth Deneau using AI and databases to gather relevant information for trades. Prediction market platforms provide APIs that make market data accessible, allowing data engineers like Steve Farmer to build AI bots for trading.
These tools have proven beneficial, with Farmer's bot boasting a 70% win rate on economic-related event contracts. As the demand for advanced trading tools grows, platforms like Kalshi are responding with features such as the Kalshi Pro terminal, designed to streamline the trading process. Startups like Kairos are also entering the scene, offering technology that allows speculators to trade across multiple exchanges without needing to build their own systems.
Written by urgent.news from CNBC's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
