Category Focused - Politics

Specializes in political prediction markets, leveraging domain expertise and historical voting patterns.

Who it's for

Traders with political expertise or interest in political outcomes

Performance

$70k$65k$60k$55k$50kSep 7, 2021Sep 9, 2022
Total returns
26.3%
Annualized returns
21.7%
Starting balance
$50,000
Ending balance
$63,150

This investment analysis tool presents hypothetical outcomes. Modeled portfolio performance is based on the selected portfolio strategy, risk level, account type, initial investment, and Betterment's management fees. Projected performance assumes the portfolio maintains the target allocation for the entire period, is comprised of the primary funds, includes fund-level fees, and rebalances periodically. Individual performance results may vary over time.

Holdings

Based on an allocation of prediction markets across different categories

Will Trump win the 2024 US Presidential Election?
25%
Will Kamala Harris be the Democratic nominee in 2024?
20%
Will the UK Labour Party win the next general election?
15%
Will the Republicans win the Senate in 2024?
15%
Will the Republicans win the House in 2024?
15%
Will Netanyahu remain Prime Minister of Israel through 2024?
10%

Backtest This Strategy

You can use Dune Analytics to backtest this portfolio strategy with historical data. Dune provides access to blockchain data that can be queried using SQL.

Example Dune Query for Category Focused - Politics

dune.com
-- Backtest for Category Focused - Politics Strategy
WITH market_data AS (
  SELECT
    block_time,
    market_address,
    outcome,
    price,
    volume
  FROM polymarket.trades
  WHERE block_time >= NOW() - INTERVAL '90 days'
    AND category = 'politics'
),
portfolio_performance AS (
  SELECT
    date_trunc('day', block_time) AS day,
    SUM(CASE 
      WHEN outcome = 'YES' AND price > 0.5 THEN volume * (1/price - 1)
      WHEN outcome = 'NO' AND price < 0.5 THEN volume * (1/(1-price) - 1)
      ELSE 0
    END) AS daily_profit
  FROM market_data
  GROUP BY 1
  ORDER BY 1
)
SELECT
  day,
  daily_profit,
  SUM(daily_profit) OVER (ORDER BY day) AS cumulative_profit
FROM portfolio_performance
ORDER BY day;

Backtest Results Visualization

$80k$70k$65k$60k$50kJan 1, 2023Jul 1, 2023Jan 1, 2024
Backtest Results
Return: +21.7%
Sharpe: 1.20
Max Drawdown: 18.5%

This backtest simulates the performance of the Category Focused - Politics strategy over the past year using historical Polymarket data. The query filters for political markets and calculates daily and cumulative returns.