AI LLM Probability Calibration + Half-Kelly Sizing: Step-by-Step DeepSeek / OpenAI / Ollama API Integration for +EV Orders
Complete step-by-step guide to connecting DeepSeek, OpenAI GPT-4o, or local Ollama LLMs via Python to parse breaking news into structured Bayesian likelihood ratios and Half-Kelly position sizes.
3-Minute Beginner Pre-Flight Checklist
- ✓An LLM API Key from DeepSeek (
platform.deepseek.comCopy), OpenAI (gpt-4o-miniCopy), OpenRouter, or a free local Ollama server - ✓Run
pip install openai requestsCopy in your VPS or local Python environment - ✓Pairs directly with P.DAY's 'JEV True Prob' and 'Calc Kelly' buttons
- ✓Core rule: only enter when
p* > P_mkt + 4%Copy
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Interactive AI LLM × Half-Kelly Quant Bot Code Generator
No manual coding required! Select your LLM provider and model below, enter your API Key, and instantly generate a customized, ready-to-run Python script plus a one-click SSH terminal deployment command.
# 0. 安装依赖并配置大模型 API 密钥 (支持 DeepSeek / OpenAI / Claude / 本地 Ollama)
# pip install openai requests
# export LLM_API_KEY="sk-你的大模型API密钥"
# export LLM_BASE_URL="https://api.deepseek.com/v1" # 或 https://api.openai.com/v1 或本地 http://127.0.0.1:11434/v1
import os, json, math
from openai import OpenAI
# 1. 初始化大模型客户端 (兼容所有 OpenAI 格式接口)
llm_client = OpenAI(
api_key=os.environ.get("LLM_API_KEY", "sk-your-api-key"),
base_url=os.environ.get("LLM_BASE_URL", "https://api.deepseek.com/v1"),
)
def get_llm_catalyst_likelihood(market_question: str, resolution_rules: str, breaking_news: str) -> dict:
"""调用大模型 API 分析突发新闻对盘口结算的边际影响,强制返回 JSON 格式似然比 (0.50 ~ 2.00)"""
system_prompt = (
"You are a quantitative prediction-market analyst. Compare the breaking news against the exact "
"UMA resolution rules. Output ONLY valid JSON: "
'{"likelihood_ratio": float_between_0.5_and_2.0, "confidence": float_0_to_1, "reason": "short summary"} '
"where 1.0 = neutral noise, >1.15 = bullish YES catalyst, <0.85 = bearish NO catalyst."
)
user_prompt = f"Market: {market_question}\nRules: {resolution_rules}\nBreaking News: {breaking_news}"
resp = llm_client.chat.completions.create(
model=os.environ.get("LLM_MODEL", "deepseek-chat"), # 或 gpt-4o-mini / qwen-plus / gemma4:31b
messages=[
{"role": "system", "content": system_prompt},
{"role": "user", "content": user_prompt},
],
response_format={"type": "json_object"},
temperature=0.1,
)
return json.loads(resp.choices[0].message.content)
def bayesian_update_prob(prior_mkt_prob: float, whale_net_flow_usd: float, llm_likelihood_ratio: float) -> float:
"""融合盘口先验概率、Polygon 巨鲸净流入与 AI 催化剂似然比,输出校准后真实胜率 p*"""
p0 = max(0.01, min(0.99, prior_mkt_prob))
log_odds = math.log(p0 / (1.0 - p0))
whale_shift = max(-0.45, min(0.45, whale_net_flow_usd / 150000.0))
llm_shift = math.log(max(0.5, min(2.0, llm_likelihood_ratio)))
post_odds = math.exp(log_odds + whale_shift + llm_shift)
return round(post_odds / (1.0 + post_odds), 4)
# 2. 实战串联:调用大模型 -> 贝叶斯校准 p* -> 计算半凯利最优仓位
p_mkt = 0.35
ai_res = get_llm_catalyst_likelihood(
market_question="Will the Fed cut rates by 25 bps at the next FOMC meeting?",
resolution_rules="Resolves YES if official FOMC statement lowers target federal funds rate.",
breaking_news="US Core CPI prints 0.1% below consensus; two Fed governors signal dovish shift.",
)
lr = float(ai_res.get("likelihood_ratio", 1.0))
p_star = bayesian_update_prob(prior_mkt_prob=p_mkt, whale_net_flow_usd=85000, llm_likelihood_ratio=lr)
half_kelly = max(0.0, 0.5 * ((p_star - p_mkt) / (1.0 - p_mkt)))
print(f"[AI 诊断] 似然比={lr:.2f} ({ai_res.get('reason')}) -> 校准胜率 p*={p_star:.1%} | 建议半凯利仓位={half_kelly:.1%}")
Line-by-Line Plain-English Code & Command Breakdown
| Code / Command Line | Plain-English Explanation (What Does This Do?) |
|---|---|
pip install openai requests
|
Installs the standard OpenAI Python SDK (compatible with DeepSeek, OpenAI, OpenRouter, and local Ollama via base_urlCopy). |
llm_client = OpenAI(api_key=..., base_url=...)
|
Initializes the LLM API client using your LLM_API_KEYCopy and endpoint URL (https://api.deepseek.com/v1Copy, https://api.openai.com/v1Copy, or http://127.0.0.1:11434/v1Copy). |
response_format={"type": "json_object"}, temperature=0.1
|
Forces the LLM to return deterministic, machine-parseable JSON containing likelihood_ratioCopy rather than unstructured prose. |
log_odds = math.log(p0 / (1.0 - p0))
|
Converts current Polymarket price (e.g., 0.35) into prior log-odds. |
whale_shift = ...
|
Adds bounded positive weight when >75%-win-rate Polygon whales accumulate shares. |
llm_shift = ...
|
Incorporates the LLM API's news catalyst likelihood ratio (clamped to 0.5–2.0) into posterior odds. |
half_kelly = max(0.0, 0.5 * ((p_star - p_mkt) / (1.0 - p_mkt)))
|
Computes the exact Half-Kelly position fraction. |
[!] Top 3 Beginner Pitfalls & Troubleshooting Guide
✕ Pitfall 1: Asking an LLM to Guess Raw Probabilities Without Market Priors or JSON Schema
Never ask for raw percentages in free text. Always use response_format={'type': 'json_object'}Copy to extract a bounded likelihood ratio (0.5–2.0) and update the market prior via Bayes' rule.
✕ Pitfall 2: Leaving LLM temperatureCopy at Default 1.0
Always set temperature=0.1Copy (or 0.0Copy) so your quantitative signal pipeline is deterministic and reproducible.
✕ Pitfall 3: Betting Full Kelly Instead of Half-Kelly
Always divide Kelly by 2 and cap single-event exposure at 15%.
Step 1: Obtain an LLM API Key & Install the Python SDK (pip install openaiCopy)
Create an API key on DeepSeek (platform.deepseek.comCopy), OpenAI (platform.openai.comCopy), OpenRouter, or run a free local model via Ollama (http://127.0.0.1:11434/v1Copy). Run pip install openai requestsCopy on your VPS and export LLM_API_KEYCopy and LLM_BASE_URLCopy in your .envCopy file.
Step 2: Enforce Structured JSON Output (response_format={'type': 'json_object'}Copy)
Trading bots cannot parse free-form essays. Set temperature=0.1Copy and response_format={'type': 'json_object'}Copy so the LLM strictly returns {"likelihood_ratio": 1.35, "confidence": 0.88, "reason": "..."}Copy bounded between 0.50Copy and 2.00Copy.
Step 3: Combine Market Prior + LLM Likelihood Ratio + Whale Flow via Bayes' Rule
Anchor on the live Polymarket mid-price (p_mktCopy) as your prior log-odds, then add math.log(likelihood_ratio)Copy from the LLM and the 4-hour Polygon smart-money net inflow (whale_net_flow_usdCopy) to compute calibrated true probability p*Copy.
Step 4: Filter for p* - p_mkt >= +4%Copy Edge & Size with Half-Kelly
Only execute when your calibrated edge clears +4%Copy, apply 0.5 * (p* - p_mkt) / (1 - p_mkt)Copy with a hard 15% cap, and pass the share count directly to py-clob-clientCopy to post a 0%-fee limit order.
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AI LLM Probability Calibration + Half-Kelly Sizing: Step-by-Step DeepSeek / OpenAI / Ollama API Integration for +EV Orders
Complete step-by-step guide to connecting DeepSeek, OpenAI GPT-4o, or local Ollama LLMs via Python to parse breaking news into structured Bayesian likelihood ratios and Half-Kelly position sizes.
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