Trading Strategy Guides

Educational overviews of common prediction market trading strategies used on Kalshi. These guides explain how each approach works and the research behind it. Not financial advice.

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Favorite-Longshot Bias

How high-probability contracts are systematically underpriced in prediction markets, and what decades of academic research says about the phenomenon.

Liquidity-First Trading

Why tight spreads and high volume matter more than any directional thesis, and how transaction costs shape prediction market returns.

Fast Turnover

Maximizing capital efficiency by focusing on short-duration markets that settle within hours, and the math behind trade frequency and compounding.

Weather Market Trading

Using publicly available forecast data from NWS and Open-Meteo to evaluate weather prediction markets on Kalshi.

Spread Capture

The mechanics of earning the bid-ask spread through limit orders, how market making works in binary contract markets, and the risks involved.

Broad Scanner

Casting a wide net across all market categories to find the best risk-adjusted opportunities, grounded in portfolio diversification theory.

More Strategies

Event-Driven Trading

Positioning around scheduled information releases like economic data, FOMC decisions, and election results on Kalshi's event markets.

Correlation Arbitrage

Identifying mispricings between related Kalshi markets that must obey logical constraints, such as nested temperature brackets.

Mean Reversion

How prediction market prices can overreact to news events, and what the academic literature says about price reversals in binary markets.

Weekly Strategy Reports

Every week we backtest strategies against real Kalshi data and publish the results.

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