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Kalshi AI Trading Bot

Added Apr 25, 2026
Agent & Tooling
Open Source
PythonLarge Language ModelsMulti-Agent SystemAI AgentsStreamlitWeb ApplicationAgent & ToolingModel & Inference FrameworkFinance

A multi-model LLM ensemble autonomous trading system for the Kalshi prediction market, featuring AI ensemble debate, pure math edge, and aggressive strategies, with built-in multi-layer risk controls and an observability dashboard.

Positioning#

A multi-model LLM ensemble autonomous trading system for the Kalshi legal prediction market, explicitly stated for educational and experimental research only, not investment advice.

Core Capabilities#

Multi-Model AI Integration#

Integrates 5 LLMs via OpenRouter with role-based division and weighted voting:

  • Claude Sonnet 4.5 — Lead Analyst (30% weight)
  • Gemini 3.1 Pro — Forecaster (30% weight)
  • GPT-5.4 — Risk Manager (20% weight)
  • DeepSeek V3.2 — Bull Researcher (10% weight)
  • Grok 4.1 Fast — Bear Researcher (10% weight)

Note: Some model names in the README (e.g., GPT-5.4, Gemini 3.1 Pro, Grok 4.1 Fast) may be placeholder/anticipated names; actual availability depends on OpenRouter.

Consensus gating: skips trades when weighted confidence < 0.45; auto-reduces position size on high model disagreement. All inference uses temperature=0 for reproducibility. Models are replaceable via single-line config.

Three Trading Strategies#

  1. AI Ensemble (default): Five-model debate + Kelly Criterion position sizing + portfolio risk controls
  2. Safe Compounder: Pure math/pure edge strategy, NO-side only (YES price ≤ 20¢), no AI required
  3. Beast Mode: Aggressive mode (paper trading only, historical backtesting shows significant losses, not recommended)

Multi-Layer Risk Management#

  • Fractional Kelly positioning (0.25x Kelly)
  • Daily hard loss limit 10%, max drawdown circuit breaker 15%
  • Industry concentration cap 30%
  • Category scoring system (hard-blocks categories with proven negative edge)
  • Daily AI API cost budget control (default $10/day)

Dynamic Exit Strategies#

  • Trailing stop after 20% profit, 15% stop-loss
  • AI confidence decay exit mechanism
  • 10-day maximum holding period
  • Volatility-adjusted thresholds

System Architecture#

Four-stage async pipeline: INGEST → DECIDE → EXECUTE → TRACK

  1. Ingest: Fetches all tradeable instruments via Kalshi Events API, supplemented by WebSocket real-time streams, RSS news, and volume/price data
  2. Decide: 5 models analyze from role perspectives, return probability estimates and confidence, weighted voting with consensus gating
  3. Execute: Qualified trades sized via Kelly Criterion, submitted through Kalshi Order API
  4. Track: Decisions and execution results written to SQLite, dashboard displays P&L, win rate, Sharpe in real-time

Project structure: src/agents/ (multi-model ensemble), src/clients/ (API clients), src/config/ (configuration), src/data/ (news & sentiment), src/events/ (async event bus), src/jobs/ (pipeline stages), src/strategies/ (strategy implementations), src/utils/ (utilities)

Observability#

  • Real-time Streamlit dashboard (portfolio value, positions, P&L, AI decision logs)
  • Paper trading simulation mode
  • SQLite local telemetry (every trade, AI decision, cost metrics)
  • Unified CLI (run / dashboard / status / health / scores / history)

Quick Start#

Prerequisites: Python ≥ 3.12, Kalshi account (API access required), OpenRouter API Key

git clone https://github.com/ryanfrigo/kalshi-ai-trading-bot.git
cd kalshi-ai-trading-bot
python setup.py
cp env.template .env  # Fill in KALSHI_API_KEY and OPENROUTER_API_KEY
python -m src.utils.database
python cli.py run --paper
python cli.py dashboard

Unverified Claims#

  • Safe Compounder claims 74% win rate and +10% ROI on NCAAB NO-side trades, but no independent verifiable backtest report or audit data is provided
  • Beast Mode specific loss data not disclosed
  • Safe Compounder edge quantification lacks statistical significance testing

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