News Materiality Trader
News Materiality Trader positions ahead of the book's full digestion of material news events.
What it does
News Materiality Trader positions ahead of the book's full digestion of material news events. It receives news items from the NewsIngest pipeline (Reuters, AP, Bloomberg, league wires), scores them using a NLP materiality classifier, resolves the news entity to one or more watchlisted Polymarket markets via an entity-resolution dictionary, and emits an IOC OrderIntent when materiality_score >= materiality_threshold. A cooldown period (cooldown_s) prevents re-trading the same entity-market pair within the window. Order TTL (order_ttl_s) limits exposure if the IOC is not immediately filled. This is a user-controlled execution tool for reacting to material news before book equilibration; it does not predict resolution outcomes or make performance claims.
Pipeline placement
Applies to: Standard binary markets where a resolved entity match triggers a NLP materiality score >= materiality_threshold on incom
Why it matters
| If this fails | Consequence |
|---|---|
| Low-materiality news classified as high | The bot takes a position based on a rumour or corrected story, entering before the market corrects back, resulting in a loss when the initial price move reverses. |
| Entity resolution maps to wrong market | A news event about 'Team X wins championship' is resolved to a market about a different competition, causing a trade on an unrelated market. |
| Book depth insufficient for the news event | Filling the full IOC at the entry price depletes the top-of-book, causing significant slippage that overwhelms the news edge. |
| cooldown_s too short — re-trading the same event | Multiple news items from the same event (e.g., breaking news + confirmation + detail) trigger multiple entries on the same market before the book has repriced. |
| feeRateBps present on signed order (V1 pattern) | CTFExchangeV2 rejects orders with feeRateBps. Fees are operator-set at match time. The signed order must not contain this field. |
Inputs
Polymarket inputs
| Input | Source | Required | Use |
|---|---|---|---|
| Watchlisted markets matched by entity | internal (entity-resolution dictionary + Gamma API) | required | Map the news event's entity to one or more open Polymarket markets. Only markets in the watchlist are eligible. |
| Book depth and recent volatility on the target market | clob_public + ws_market | required | Size the IOC order to min(available_depth, max_position_usd) and check recent volatility hasn't already absorbed the news. |
| Market open/closed/resolved status | clob_public | required | Skip markets that are closed, resolved, or approaching resolution (< 30 min to close). |
Internal inputs
| Input | Source | Required | Use |
|---|---|---|---|
| KillSwitch active flag | KillSwitch | required | Abort all intent emission immediately if KillSwitch is active. |
| NewsIngest materiality score + entity match + news item | internal (NewsIngest pipeline) | required | Trigger trade when materiality_score >= materiality_threshold and entity resolves to an open watchlist market. |
| NLP materiality classifier | internal | required | Score each news item on a 0–1 scale for market-moving impact on the resolved entity's Polymarket market. |
| Entity-resolution dictionary | internal | required | Map news entities (persons, teams, countries, companies) to Polymarket condition IDs. |
| Builder code bytes32 | internal config | required | Injected into builder field on every signed V2 OrderIntent. |
Authority
What this bot is permitted to do
State
Readiness
Limited live
Status
beta
Class
Alpha Strategy
Default mode
limited_live
Developer owner
Polytraders core — Strategy pod
Capital impact
Direct
Reason codes emitted
| Code | Severity | Meaning | Action |
|---|---|---|---|
| NEWS_MATERIALITY_TRADE_TRIGGERED | INFO | materiality_score >= threshold, entity resolved, cooldown cleared, market open. IOC OrderIntent emitted. | Emit IOC OrderIntent; register cooldown. |
| NEWS_MATERIALITY_TOO_LOW | INFO | materiality_score is below the 0.40 hard floor. News is not material enough to trade. | Skip; emit sampled DecisionReport. |
| NEWS_MATERIALITY_SCORE_MARGINAL | WARN | materiality_score between 0.40 and 0.72. Trade is marginal; size reduced to 50%. | Emit IOC at 50% size; log warning. |
| NEWS_MATERIALITY_NO_MARKET_MATCH | INFO | News entity did not resolve to any open watchlist market in the entity-resolution dictionary. | Skip; emit DecisionReport. |
| NEWS_MATERIALITY_COOLDOWN_ACTIVE | INFO | Last trade on this entity-market pair was within cooldown_s seconds. | Skip; emit DecisionReport. |
| NEWS_MATERIALITY_ALREADY_DIGESTED | INFO | Market price has already moved significantly since the news event; likely already digested. | Skip; emit DecisionReport. |
| NEWS_MATERIALITY_SHORT_COOLDOWN | WARN | cooldown_s config is below the 45s warning threshold. Re-trading same event risk elevated. | Allow but log warning. |
| STALE_MARKET_DATA | HARD_REJECT | clob_public or ws_market data is stale (> 5s) for target market. | Skip; no OrderIntent emitted. |
| KILL_SWITCH_ACTIVE | HARD_REJECT | Global kill switch is active. | Skip all news events; no OrderIntents emitted. |
Related bots in Strategy
Used by
Reverse index — strategies that currently reference strat.news-materiality-trader. If you change this bot's authority or reason codes, these strategies must re-pass shadow.
| Strategy | State | Activity |
|---|---|---|
| Crypto Q2 — basket rebalance | frozen | last triggered 17m ago |
| US Elect — book-builder | demo-wired | last triggered 24m ago |
| NBA H2H — moneyline market-make | demo-wired | last triggered 31m ago |
Showing 3 of 3 · 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 →