Trading News API with Prediction Markets
Rating
★★★☆☆
Over the past few weeks, I’ve been testing a strategy where I feed real-time financial news into my Polymarket trading setup, and the results have been better than expected.
Here’s how I’m doing it: I use the TradingNews API to get breaking-level news and sentiment scores, then compare that with the current odds on Polymarket to find markets where pricing hasn’t reacted yet.
A real example from last week: when the FOMC decision came out, the API pushed the update almost instantly and tagged it as breaking + negative sentiment. At that moment, the odds on a Polymarket rate-hike contract hadn’t moved yet. I entered the trade and closed it 20 minutes later.
My strategy:
- Only look at breaking-level news; ignore everything else
- Check whether the sentiment direction conflicts with current market pricing
- If there’s a mismatch, enter with a small position
Is anyone else doing something similar? Most of the strategies I’ve seen are purely odds-based or technical, and very few people seem to be plugging in real-time news feeds.
I've been doing something similar but with whale flow data instead of news. Watching where high-volume wallets move on Polymarket before news drops has been surprisingly reliable. predterminal.com has a free scanner that tracks large wallet movements across all Polymarket and Kalshi markets in real time. The smart money vs crowd divergence feature is also worth checking out
