Polymarket Paper Trader

v1.0.0Finance & Fintechstable

Paper trading simulator for Polymarket — built for AI agents. MCP server, live order books, strategy backtesting. Install: npx clawhub install polymarket-paper-trader

ai-agentalgorithmic-tradingbacktestingclawhubmcp
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What is Polymarket Paper Trader?

Polymarket Paper Trader is a Model Context Protocol (MCP) server that allows AI assistants like Claude, Cursor, and VS Code to paper trading simulator for polymarket — built for ai agents. mcp server, live order books, strategy backtesting. install: npx clawhub install polymarket-paper-trader

Paper trading simulator for Polymarket — built for AI agents. MCP server, live order books, strategy backtesting. Install: npx clawhub install polymarket-paper-trader

This server falls under the Finance & Fintech category on MCPgee, the world's largest MCP server directory with 33,000+ servers.

Features

  • Paper trading simulator for Polymarket — built for AI agents

Use Cases

Paper trading simulator for Polymarket
AI agent trading strategy backtesting
Live order book access
agent-next

Maintainer

LicenseMIT
Languagepython
Versionv1.0.0
UpdatedMay 21, 2026
Statushealthy
Maintenanceactive

Works with

ClaudeOpenAIwindowsmacoslinux

Installation

Manual Installation

npx polymarket-paper-trader

Configuration

Configuration Details

Config File

claude_desktop_config.json

Performance

Response Metrics

Response Time< 200ms
ThroughputMedium

Resource Usage

Memory UsageLow
CPU UsageLow

How to Set Up and Use Polymarket Paper Trader

Polymarket Paper Trader is a paper trading simulator built specifically for AI agents to practice trading on Polymarket prediction markets without risking real money. It connects to live Polymarket order books and accurately models fees, slippage, and multi-outcome markets so agents can develop and backtest trading strategies in a realistic environment. With 26 MCP tools covering account management, market search, trade execution, portfolio tracking, and strategy benchmarking, it gives AI agents a complete trading sandbox before deploying capital.

Prerequisites

  • Python 3.10 or later installed
  • pip or uv package manager available
  • An MCP-compatible client such as Claude Desktop or Claude Code
  • No Polymarket account or API keys required — operates against public order book data
1

Install the package

Install polymarket-paper-trader via pip. Python 3.10+ is required. Alternatively use the ClawHub installer for OpenClaw agent environments.

pip install polymarket-paper-trader
2

Initialize a paper trading account

Run the CLI to create a paper account with an initial simulated balance. The default data directory is used unless you specify PM_TRADER_DATA_DIR.

pm-trader init --balance 10000
3

Configure the MCP server

Add the server to your MCP client configuration file. The command pm-trader-mcp is installed automatically with the package and requires no API keys.

{
  "mcpServers": {
    "polymarket-paper-trader": {
      "command": "pm-trader-mcp"
    }
  }
}
4

Optionally set environment variables

Two optional environment variables control data storage and the active account. Set PM_TRADER_DATA_DIR to a custom path if you want to store account data outside the default location, and PM_TRADER_ACCOUNT to switch between multiple named accounts.

export PM_TRADER_DATA_DIR="/path/to/data"
export PM_TRADER_ACCOUNT="my-account"
5

Search markets and execute a trade

Use the CLI or via the MCP tools to search for prediction markets and place simulated buy orders. The order book execution mirrors Polymarket's real fee formula and processes orders level by level.

pm-trader markets search "bitcoin"
pm-trader buy will-bitcoin-hit-100k yes 500
pm-trader stats --card
6

Backtest a strategy

Run one of the included example strategies against historical data to benchmark your trading logic before using it with live paper trades.

pm-trader benchmark run examples.momentum.run
pm-trader benchmark run examples.mean_reversion.run

Polymarket Paper Trader Examples

Client configuration

Minimal configuration for Claude Desktop or Claude Code. No API key is required. The pm-trader-mcp binary is installed with the pip package.

{
  "mcpServers": {
    "polymarket-paper-trader": {
      "command": "pm-trader-mcp"
    }
  }
}

Prompts to try

Example prompts to use once the server is connected to your AI agent or Claude Desktop.

- "Initialize a paper trading account with $5,000 balance"
- "Search for prediction markets about the 2024 US election"
- "Buy 100 shares of the YES outcome for market slug will-trump-win-2024"
- "Show my current portfolio and unrealized P&L"
- "Run a backtest of the momentum strategy over the last 30 days"
- "What is my win rate and ROI across all trades?"

Troubleshooting Polymarket Paper Trader

pm-trader-mcp command not found after installation

Ensure your pip scripts directory is on your PATH. Run `pip show polymarket-paper-trader` to find the install location, then add its bin/ directory to PATH or reinstall with `pipx install polymarket-paper-trader`.

Account data not persisting between sessions

Set PM_TRADER_DATA_DIR to an explicit absolute path (e.g. export PM_TRADER_DATA_DIR=$HOME/.pm-trader) so data is written to a consistent location regardless of where the server starts.

Order fails with slippage error on large trades

Polymarket order books have limited liquidity at each price level. Split large orders into smaller chunks or use limit orders instead of market orders to avoid depleting a single price level.

Frequently Asked Questions about Polymarket Paper Trader

What is Polymarket Paper Trader?

Polymarket Paper Trader is a Model Context Protocol (MCP) server that paper trading simulator for polymarket — built for ai agents. mcp server, live order books, strategy backtesting. install: npx clawhub install polymarket-paper-trader It connects AI assistants to external tools and data sources through a standardized interface.

How do I install Polymarket Paper Trader?

Follow the installation instructions on the Polymarket Paper Trader GitHub repository. Clone the repo, install dependencies, and add the server config to your AI client.

Which AI clients work with Polymarket Paper Trader?

Polymarket Paper Trader works with all major MCP-compatible AI clients including Claude Desktop, Claude Code, Cursor, VS Code (GitHub Copilot), Windsurf, and Cline.

Is Polymarket Paper Trader free to use?

Yes, Polymarket Paper Trader is open source and available under the MIT license. You can use it freely in both personal and commercial projects.

Browse More Finance & Fintech MCP Servers

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Quick Config Preview

{ "mcpServers": { "polymarket-paper-trader": { "command": "npx", "args": ["-y", "polymarket-paper-trader"] } } }

Add this to your claude_desktop_config.json or .cursor/mcp.json

Read the full setup guide →

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