Without mincing words, this strategy will work for you at times and fail you many times, however, if you have good risk management in place, the negative effect will be minimal.
This is better with the long-term system, although it can work for the short-term too, the stress will be too much for you. The downside is that you are trading against the trend of the market, which could put you in serious trouble. At times, when people think the market would dip back after hitting a strong greed level might be the time it would stay in that region for months and condition to lose your money. The same goes for when it's the fear index, it will continue to sell and might tarry for a long time. This would be aggravated in determined/definitive market conditions where the trend reigns supreme.
So conclusively, as a trend lover who believes that "trend is my friend," I would rather trade the trend as a sole strategy and not the reversal of the trend. It's riskier in my experience.
Topic: Using crypto fear and greed index for trading (Read 207 times)
I think it's best when trading is combined with investment, that way, a person can try both from both worlds.
And choose what he likes more in the future. Or keep doing both of them.
You can do only investment or only trading, but you can do both investment and trading.And choose what he likes more in the future. Or keep doing both of them.
The vital condition, if you want do both investment and trading, to succeed is you must assign your capital to 2 different baskets.
One basket is for investment.
Another basket is for trading.
And these two capital baskets will never cross each other. Because if you, I assume, open your exchange account, store all your capital there, and use it for both investment and trading, you will be very hard to control your action. You will fall to use all capital for trading some day, and it's terrible practice.
Of course, it's not recommended to store your investment capital on centralized exchanges.
Reminder: do not keep your money in online accounts
You can store your trading capital on exchanges, and another basket for investment must be stored in your Bitcoin non custodial wallet.
Quick question, when using the crypto fear and greed index, does that index not use any timeframe?
Just like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
Just like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
Crypto fear and greed index is updated on a daily timeframe. Most people compute it once a day. I haven't heard of providers who do compute the data for shorter time frames than this.
Quick question, when using the crypto fear and greed index, does that index not use any timeframe?
Just like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
It's possible to combine Price together with Fear & Greed Index in one chart like thisJust like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/
Time is very important because it relates to when we enter and exit the market. When is important because it decides that our entry and exit are good or bad and bring profit or loss to our trading positions.
But unfortunately, we can not timing the market, and trading is risky because it's hard to predict the market. Investment is better than trading and with investment, we can use Fear and Greed Index chart too.
Thanks for the heads up!
I think it's best when trading is combined with investment, that way, a person can try both from both worlds.
And choose what he likes more in the future. Or keep doing both of them.
This is meant to be an indicator. Use it as one of your indicators. You will still need to back it up with other indicators. Most especially the technical indicators. Also sometimes you need to use fundamental indicator with it as many news will be positive that time.
I do not know what the fear would be during bull market which will make me not to tell you when to use it.
I think the same too, indicators should not be used on isolation as they can lead you to take mistaken decisions, besides as we know markets can be really irrational...I do not know what the fear would be during bull market which will make me not to tell you when to use it.
As the word itself says, the indicators show but little else. The thing is not as easy as seeing if the indicator marks fear and then buy, if it marks greed and then sell, or if it is in the middle, and then hold.
They are useful to get an idea of where things are going, but an isolated indicator is useless.
Quick question, when using the crypto fear and greed index, does that index not use any timeframe?
Just like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
It's possible to combine Price together with Fear & Greed Index in one chart like thisJust like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/
Time is very important because it relates to when we enter and exit the market. When is important because it decides that our entry and exit are good or bad and bring profit or loss to our trading positions.
But unfortunately, we can not timing the market, and trading is risky because it's hard to predict the market. Investment is better than trading and with investment, we can use Fear and Greed Index chart too.
Quick question, when using the crypto fear and greed index, does that index not use any timeframe?
Just like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
Just like other indicators if you use it on multiple time frames, the values change depending on the timeframe.
My triggers:
- Coin - BTC
- Buy when fear value is less than 17
- Sell when greed value is greater than 85
Just based on the fear and greed index trading cant be reliable you need to check out some other indicators and most importantly keep events in count related to any important development in the crypto market for sure you need to know that risk management is something which varies from portfolio to portfolio so if these are your triggers seems they suit your trading style and portfolio but for those who have different plans and strategies with their portfolio these numbers can change like my case Start booking at 70+ in segments.
And below 35 start light accumulation, and below 25 make aggressive buying and lock all your buy positions and then wait patiently for the first booking and so on.
This is meant to be an indicator. Use it as one of your indicators. You will still need to back it up with other indicators. Most especially the technical indicators. Also sometimes you need to use fundamental indicator with it as many news will be positive that time.
I do not know what the fear would be during bull market which will make me not to tell you when to use it.
I think the same too, indicators should not be used on isolation as they can lead you to take mistaken decisions, besides as we know markets can be really irrational, since even if the greed was at its maximum, this does not really mean the price will go down shortly, instead it is way more likely we see the opposite, with market participants buying more bitcoin even if it is reaching a new ATH almost every day, so if someone were to sell under those circumstances, it is possible they will miss a great deal of the bull run.I do not know what the fear would be during bull market which will make me not to tell you when to use it.
you would be checking whether it do really getting in line with those technicals or not. Sometimes its not really that a guaranteed thing with those indicators whether the market is on greed or fear but its not really that
something bad to make use of this index on which you could really be able to make yourself wary whether the market is on greed or fear. You will be able to assess out and make decisions whether you would go along and make positions or you would really be waiting up for some confirmation that came from other analysis of yours before making a move. Its not really that something an assured indicator but it isnt that bad either.
No one really knows on whats the real movement on where prices would go. No matter how veteran you are there's no way that you could be able to predict on where things would be going.
This is why it will really be best that you should make out some combination on whatever analysis that you do have so that you would be that at least do know on what you are really that doing.
You do have the idea on what are the things that you must do.
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I would say this is a pretty good idea. I never thought like that. I am not a regular trader, but as you know, everyone wants to make money from the crypto market. I have already invested a couple of thousand dollars, and I am not in a good position now. That is because of the instability of the altcoin market. I am still profiting from Bitcoin because my first average Bitcoin accumulation was around 27K, which is pretty good.
I have been seeing the fear and greed index on Coinmarketcap but never had the idea to utilize it. Thanks for the topic; I believe people can utilize this feature.
I have been seeing the fear and greed index on Coinmarketcap but never had the idea to utilize it. Thanks for the topic; I believe people can utilize this feature.
This is meant to be an indicator. Use it as one of your indicators. You will still need to back it up with other indicators. Most especially the technical indicators. Also sometimes you need to use fundamental indicator with it as many news will be positive that time.
I do not know what the fear would be during bull market which will make me not to tell you when to use it.
I think the same too, indicators should not be used on isolation as they can lead you to take mistaken decisions, besides as we know markets can be really irrational, since even if the greed was at its maximum, this does not really mean the price will go down shortly, instead it is way more likely we see the opposite, with market participants buying more bitcoin even if it is reaching a new ATH almost every day, so if someone were to sell under those circumstances, it is possible they will miss a great deal of the bull run. I do not know what the fear would be during bull market which will make me not to tell you when to use it.
You be ruined if you trade against it.
My ragga-muffin.
You end up with F&G after Bollinger Bands and RSI has tipped your ideas about how it should be. Try not to relate it to speculation and just use it.
Same with margin. Tell every makker it's not a problem.
Persuasion is when you follow people with a banjo and deny stop playing till you get paid. Refuse till you get it right.
Tell you man. You stick to facts or grid. A grid (v3 LP) would cover range 0 to infinite on BTC/USD. Trade at all prices in one package.
I know my dogs. pTGC.. UFO. God will be respected.
My ragga-muffin.
I didnt care too much with the crypto index indicator I just make a casual trade with the market graph, those are just the accumulated data came from the trades of the people during that time, and if you check the market you don't need to get rely on this instead if you analyze the market movement you can see the next potential outcome and also people doing DCA recently just to wait for the long term investment and keep holding.
As checking in the history it seems this guy keep pursuing and urge people to use his project. I guess ideal too if he made an ANN for this if he really want to show something to the community.
Are you the developer of this project, or someone related to it? You posted about it many times based on your post history. If this is one of your marketing strategies, I'd suggest opening an ANN thread for them instead.
I wonder if we can use different indicator providers to backtest the data, or if there is any integration with an open-source trading bot like Gekko (although it is no longer maintained) or Freqtrade to backtest the strategy.
I wonder if we can use different indicator providers to backtest the data, or if there is any integration with an open-source trading bot like Gekko (although it is no longer maintained) or Freqtrade to backtest the strategy.
As checking in the history it seems this guy keep pursuing and urge people to use his project. I guess ideal too if he made an ANN for this if he really want to show something to the community.
You end up with F&G after Bollinger Bands and RSI has tipped your ideas about how it should be. Try not to relate it to speculation and just use it.
Same with margin. Tell every makker it's not a problem.
Persuasion is when you follow people with a banjo and deny stop playing till you get paid. Refuse till you get it right.
This is meant to be an indicator. Use it as one of your indicators. You will still need to back it up with other indicators. Most especially the technical indicators. Also sometimes you need to use fundamental indicator with it as many news will be positive that time.
I do not know what the fear would be during bull market which will make me not to tell you when to use it.
I do not know what the fear would be during bull market which will make me not to tell you when to use it.
Tell you man. You stick to facts or grid. A grid (v3 LP) would cover range 0 to infinite on BTC/USD. Trade at all prices in one package.
I know my dogs. pTGC.. UFO. God will be respected.
My triggers:
Your triggering figures are at extremely Fear and extremely Greed areas but I don't see you have any note on what is Trading type to use, if people apply your method.- Coin - BTC
- Buy when fear value is less than 17
- Sell when greed value is greater than 85
It's safer to use this method, and also in general trading, with Spot trading type, not with two other more risky types: Margin/ Leverage, and Futures.
When the market is in either extremely Fear or Greed, if you use leverages, you are putting your trading position and capital at high risk of liquidation.
Quote
You can calculate this for any coin and set your own triggers. To use this go here: https://botsfolio.com/fear-and-greed
This method can simply base on Bitcoin Fear and Greed Index because Bitcoin leads this market.https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/
The calculator computes it for spot market with no leverage trading.
I didnt care too much with the crypto index indicator I just make a casual trade with the market graph, those are just the accumulated data came from the trades of the people during that time, and if you check the market you don't need to get rely on this instead if you analyze the market movement you can see the next potential outcome and also people doing DCA recently just to wait for the long term investment and keep holding.
As checking in the history it seems this guy keep pursuing and urge people to use his project. I guess ideal too if he made an ANN for this if he really want to show something to the community.
Are you the developer of this project, or someone related to it? You posted about it many times based on your post history. If this is one of your marketing strategies, I'd suggest opening an ANN thread for them instead.
I wonder if we can use different indicator providers to backtest the data, or if there is any integration with an open-source trading bot like Gekko (although it is no longer maintained) or Freqtrade to backtest the strategy.
I wonder if we can use different indicator providers to backtest the data, or if there is any integration with an open-source trading bot like Gekko (although it is no longer maintained) or Freqtrade to backtest the strategy.
As checking in the history it seems this guy keep pursuing and urge people to use his project. I guess ideal too if he made an ANN for this if he really want to show something to the community.
My triggers:
Your triggering figures are at extremely Fear and extremely Greed areas but I don't see you have any note on what is Trading type to use, if people apply your method.- Coin - BTC
- Buy when fear value is less than 17
- Sell when greed value is greater than 85
It's safer to use this method, and also in general trading, with Spot trading type, not with two other more risky types: Margin/ Leverage, and Futures.
When the market is in either extremely Fear or Greed, if you use leverages, you are putting your trading position and capital at high risk of liquidation.
Quote
You can calculate this for any coin and set your own triggers. To use this go here: https://botsfolio.com/fear-and-greed
This method can simply base on Bitcoin Fear and Greed Index because Bitcoin leads this market.https://www.bitcoinmagazinepro.com/charts/bitcoin-fear-and-greed-index/
Are you the developer of this project, or someone related to it? You posted about it many times based on your post history. If this is one of your marketing strategies, I'd suggest opening an ANN thread for them instead.
I wonder if we can use different indicator providers to backtest the data, or if there is any integration with an open-source trading bot like Gekko (although it is no longer maintained) or Freqtrade to backtest the strategy.
I wonder if we can use different indicator providers to backtest the data, or if there is any integration with an open-source trading bot like Gekko (although it is no longer maintained) or Freqtrade to backtest the strategy.
This is meant to be an indicator. Use it as one of your indicators. You will still need to back it up with other indicators. Most especially the technical indicators. Also sometimes you need to use fundamental indicator with it as many news will be positive that time.
I do not know what the fear would be during bull market which will make me not to tell you when to use it.
I do not know what the fear would be during bull market which will make me not to tell you when to use it.
This feature is available on website such as coinmarketcap and coingecko. I’m curious on what’s the difference or advantage of using your fear and greed index compared to the one available on popular price aggregator which the majority of crypto trader use?
I’m always fond on the use of this index but it’s so hard to rely solely on this without the use of indicators to have a better overview for signals.
What’s your trading success rate so far for your current strategy?
I’m always fond on the use of this index but it’s so hard to rely solely on this without the use of indicators to have a better overview for signals.
What’s your trading success rate so far for your current strategy?
The sites you mentioned don't have a profit calculator to back test trading using fear and greed. Go to this link: https://botsfolio.com/fear-and-greed and you will find a profit calculator where you can select coins and set triggers for fear and greed. It will calculate the historical performance for you. You can sort of back test if crypto fear and greed index really works or not.
This feature is available on website such as coinmarketcap and coingecko. I’m curious on what’s the difference or advantage of using your fear and greed index compared to the one available on popular price aggregator which the majority of crypto trader use?
I’m always fond on the use of this index but it’s so hard to rely solely on this without the use of indicators to have a better overview for signals.
What’s your trading success rate so far for your current strategy?
I’m always fond on the use of this index but it’s so hard to rely solely on this without the use of indicators to have a better overview for signals.
What’s your trading success rate so far for your current strategy?
I wanted to test the strategy of buying when fear is high and selling when greed takes over. For this I have built a calculator using crypto fear and greed index which computes investment ROI when you input the coin, fear and greed trigger values. It will also compare the ROI against popular stocks in your country and market indexes. The crypto fear and greed index reflects market sentiment and shows when people feel fear and when they experience greed, utilizing various elements such as volatility, trading volume, and social media activity.
My triggers:
My results: https://botsfolio.com/fear-and-greed?lower_fng=17&upper_fng=85&coin_dict={"BTC":100}&duration=5xyear
You can calculate this for any coin and set your own triggers. To use this go here: https://botsfolio.com/fear-and-greed
My triggers:
- Coin - BTC
- Buy when fear value is less than 17
- Sell when greed value is greater than 85
My results: https://botsfolio.com/fear-and-greed?lower_fng=17&upper_fng=85&coin_dict={"BTC":100}&duration=5xyear
You can calculate this for any coin and set your own triggers. To use this go here: https://botsfolio.com/fear-and-greed
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