Quantitative#048

Dynamic Hedging / Gamma Scalping Analog

Hold offsetting Yes/No positions across correlated markets and keep rebalancing them as prices move, buying low and selling high on each swing while staying roughly market-neutral overall. Like gamma scalping in options, you profit from volatility itself rather than direction, as long as your rebalancing trades cost less than the swings they capture.

What you need to run it

Real-time Greeks-style exposure model for binary payoffs
Automated rebalance trigger (price-move or time-based)
Cost model so rebalance frequency doesn't eat the edge

Where this applies

Markets on Polymarket where dynamic hedging / gamma scalping analog is the natural play:

Will Ethereum close above $5k on December 31, 2026?
Will Bitcoin close above $150k on December 31, 2026?
Will the President's approval exceed 45% at the end of [upcoming month]?

Capabilities this demands

Model / quantCustom code / APILow latency

At a glance

CategoryQuantitative

Requirements3

CapabilitiesModel / quant, Custom code / API, Low latency

VenuePolymarket (CLOB, Polygon)

Build it

Related quantitative strategies

This is documentation, not advice. Poly Research & Robotics publishes how these strategies work because the method should be checkable — not as a recommendation to trade them. See the full strategy database (147 strategies) or the data resources directory.