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πŸ¦€ ClawHub

Kalshi Econ Revision Drift Trader

by @diagnostikon

Trades CPI bin markets on Kalshi accounting for systematic upward revision bias (~0.03 pp) in initial CPI releases. Markets pricing off initial releases unde...

πŸ’‘ Examples

If CPI market-implied mean is 2.80%:

| Bin | Initial Prob | Revised Prob | Revision Edge | |-----|-------------|-------------|---------------| | < 2.0% | 5.5% | 4.9% | -0.6% | | 2.0-2.5% | 22.7% | 21.5% | -1.2% | | 2.5-3.0% | 38.3% | 38.2% | -0.1% | | 3.0-3.5% | 24.6% | 25.8% | +1.2% | | > 3.5% | 8.9% | 9.6% | +0.7% |

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

  • Seasonal adjustment: CPI revisions vary by month (e.g., January effect)
  • BLS methodology tracking: New CPI basket weights change revision patterns
  • Nowcast overlay: Combine revision bias with Cleveland Fed CPI nowcast
  • Multi-release: Track preliminary, final, and revised releases separately
  • View on ClawHub
    TERMINAL
    clawhub install kalshi-econ-revision-drift-trader

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