Kalshi Econ Fed Link Trader#

This is a template.

The default signal uses a static CPI-to-Fed sensitivity table -- remix it with live CME FedWatch data, yield curve signals, or Taylor Rule models.

The skill handles all the plumbing (market discovery, trade execution, safeguards). Your agent provides the alpha.

Strategy Overview#

CPI data and Fed rate decisions are deeply linked. This skill reads CPI bin market prices to estimate the current CPI level, then uses a DATA_SENSITIVITY table to compute fair probabilities for Fed rate cut/hold/hike markets. When the Fed market price diverges from the model, trade the edge.

Key advantages:

• Cross-market signal -- uses information from one market type to trade another
• Fundamental economic linkage -- CPI-to-Fed is the most documented macro relationship
• DATA_SENSITIVITY table -- calibrated from historical Fed reaction function
• No external data needed -- all inputs come from Kalshi market prices

Signal Logic#

CPI-to-Fed Linkage Model#

1. Scan CPI bin markets and extract probability-weighted expected CPI level
2. Look up model Fed probabilities from DATA_SENSITIVITY table
3. Interpolate between table entries for precise CPI levels
4. Compare model probability to Fed market price
5. Trade when |model - market| >= entry_edge

DATA_SENSITIVITY Table#

CPI LevelP(Cut)P(Hold)P(Hike)1.0%85%12%3%2.0%55%38%7%2.5%20%65%15%3.0%5%55%40%4.0%1%24%75%5.0%0%10%90%

Conviction-Based Sizing#

• conviction = min(|edge| / entry_edge, 2.0) / 2.0
• size = max($1.00, conviction * MAX_POSITION_USD)
• Larger edge = larger position, capped at MAX_POSITION_USD

Remix Ideas#

• CME FedWatch: Compare model to CME futures-implied Fed probabilities
• Yield curve signal: Add 2y-10y spread as additional Fed predictor
• Taylor Rule: Replace sensitivity table with formal Taylor Rule computation
• Real-time CPI nowcast: Use Cleveland Fed nowcast instead of bin prices

Risk Parameters#

ParameterDefaultNotesEntry edge10%Min model-vs-market divergence to tradeExit threshold45%Sell when position price reaches thisMax position size$5.00 USDCPer marketMax trades per run3Rate limitingMax slippage15%Skip if slippage exceedsMin liquidity$0Disabled by default

Installation & Setup#

bash

clawhub install kalshi-econ-fed-link-trader

Requires: SIMMER_API_KEY and SOLANA_PRIVATE_KEY environment variables.

Cron Schedule#

Cron is set to null -- the skill does not run on a schedule until you configure it in the Simmer UI.

Safety & Execution Mode#

The skill defaults to dry-run mode. Real trades only execute when --live is passed explicitly.

ScenarioModeFinancial riskpython trader.pyDry runNoneCron / automatonDry runNonepython trader.py --liveLive (Kalshi via DFlow)Real USDC

The automaton cron is set to null -- it does not run on a schedule until you configure it in the Simmer UI. autostart: false means it won't start automatically on install.

Required Credentials#

VariableRequiredNotesSIMMER_API_KEYYesTrading authority. Treat as a high-value credential.SOLANA_PRIVATE_KEYYesBase58-encoded Solana private key for live trading.

Tunables (Risk Parameters)#

All risk parameters are declared in clawhub.json as tunables and adjustable from the Simmer UI without code changes.

VariableDefaultPurposeSIMMER_ECON_FEDLINK_ENTRY_EDGE``0.10Min divergence between model and market to trigger tradeSIMMER_ECON_FEDLINK_EXIT_THRESHOLD``0.45Sell position when price reaches this levelSIMMER_ECON_FEDLINK_MAX_POSITION_USD``5.00Max USDC per tradeSIMMER_ECON_FEDLINK_MAX_TRADES_PER_RUN``3Max trades per execution cycleSIMMER_ECON_FEDLINK_SLIPPAGE_MAX``0.15Max slippage before skipping (0.15 = 15%)SIMMER_ECON_FEDLINK_MIN_LIQUIDITY``0Min market liquidity USD (0 = disabled)

Dependency#

simmer-sdk is published on PyPI by Simmer Markets.

• PyPI: https://pypi.org/project/simmer-sdk/
• GitHub: https://github.com/SpartanLabsXyz/simmer-sdk
• Publisher: hello@simmer.markets

Review the source before providing live credentials if you require full auditability.