⚠ INTERNAL — Operator UX mock · Design preview of V2 development path · demo-wired ≠ production-live · back to dev guide
Polygon · pUSD 10
📓 Developer Guide 📋 Reason Codes 📈 Shadow Mode
JD John Doe · Admin

NarrativeCrowdingFade

strat.narrativecrowdingfade
Strategy planned Spec started frozen

NarrativeCrowdingFade detects Polymarket binary markets where social attention and narrative momentum have pushed prices above the statistical base ra

What it does

NarrativeCrowdingFade detects Polymarket binary markets where social attention and narrative momentum have pushed prices above the statistical base rate. When attention Z-score and price drift signal crowding, the bot fades the move — taking the opposite position to capture reversion toward the base rate.

Pipeline placement

runs after: Observation bus / internal analytics NarrativeCrowdingFade runs before: Risk guardrail pipeline

Applies to: Polymarket binary markets where attention Z-score >= min_attention_zscore and price drift from base rate >= min_drift_bp

Why it matters

If this failsConsequence
News is genuinely paradigm-shiftingIf the crowded narrative reflects real new information rather than sentiment overshoot, the fade position loses as the market price correctly adjusts to the new fundamental.
Stale input dataActing on stale signals for NarrativeCrowdingFade produces trades based on outdated market conditions, generating adverse fills.
KillSwitch not respectedEmitting OrderIntents while KillSwitch is active bypasses risk controls.

Inputs

Polymarket inputs

InputSourceRequiredUse
CLOB book (mid, depth, spread)ws_marketrequiredRead current market price and available depth for order sizing.
Market status (open/closed/resolved)clob_publicrequiredSkip closed or resolved markets.

Internal inputs

InputSourceRequiredUse
KillSwitch active flagKillSwitchrequiredAbort all intent emission if KillSwitch active.
NarrativeCrowdingFade analytics signalinternal (analytics engine)requiredProvides the core NarrativeCrowdingFade signal that drives trade decisions.
Builder code bytes32internal configrequiredInjected into builder field on every signed V2 OrderIntent.

Authority

What this bot is permitted to do

Trade

State

Readiness

Spec started

Status

planned

Class

Alpha Strategy

Default mode

shadow_only

Developer owner

Polytraders core — Strategy pod

Capital impact

Direct

Reason codes emitted

CodeSeverityMeaningAction
NCF_TRADEINFOAll gates passed. IOC OrderIntent emitted for NarrativeCrowdingFade.Emit IOC OrderIntent.
NCF_MARGINALWARNEdge is within the warning threshold; size reduced 50%.Emit at 50% size; log warning.
NCF_NO_EDGEINFOEdge below hard floor. Skipping.Skip; emit sampled DecisionReport.
NCF_HARD_REJECTHARD_REJECTA critical gate condition blocked the trade (stale data, kill switch, or hard parameter breach).Skip; no OrderIntent.
KILL_SWITCH_ACTIVEHARD_REJECTGlobal kill switch is active.Skip all markets; no OrderIntents emitted.

Used by

Reverse index — strategies that currently reference strat.narrativecrowdingfade. If you change this bot's authority or reason codes, these strategies must re-pass shadow.

StrategyStateActivity
US Elections — sentiment fadedemo-wiredlast triggered 25m ago
BTC weekly — close-aware quotesdemo-wiredlast triggered 32m ago

Showing 2 of 2 · demo-wired ≠ production-live

Why this matters

Strategy bots does NOT sign, route, or directly submit orders to the chain. Understanding the authority boundary prevents misuse and makes promotion-gate reviews faster and more reliable. View raw spec JSON →
Polytraders Operator UX Mock · INTERNAL · demo-wired ≠ production-live · the plan · reason codes · shadow-mode pipeline
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