š WINRATE & MARKET SENTIMENT (FGI) ANALYSIS ā updated through 2025-08-16
Daily win rate data from the scalping community shows a very weak relationship between FGI and performance (correlation ā -0.07). Win rate does not move linearly with sentiment; the āextreme greedā phase, in particular, tends to pull performance down noticeably.
š Quick take
When FGI is in the Fear zone (26ā46), traders tend to be more cautious and take profits earlier, so the win rate edges above the average. In the Greed zone (55ā74), the win rate is also higher but only slightly. By contrast, āExtreme Greedā often comes with FOMO: TP targets get stretched, and orders hit SL before reaching the target.
š Average win rate by FGI band (with days)
šØ Extreme Fear (ā¤25): 44.57% ā n=23
š Fear (26ā46): 45.19% ā n=96
š Neutral (47ā54): 44.71% ā n=52
š Greed (55ā74): 45.27% ā n=177 (highest but only marginally above Fear)
š¤ Extreme Greed (ā„75): 42.55% ā n=62 (lowest)
Share of days above the overall average win rate of 44.73% by FGI band: Fear 57.29% (highest), Greed 48.59%, Neutral 44.23%, Extreme Fear 43.48%, Extreme Greed 29.03% (lowest). This supports the idea that the biggest risk sits in the āextreme greedā phase, while moderate Fear/Greed phases deliver comparatively stable performance.
š Implications for scalping
1 - When FGI ā„75: lower TP expectations, tighten SL sensibly, and favor early profit-taking when momentum fades.
2 - When FGI 26ā74: keep R:R discipline; avoid stretching TP due to FOMO (the win rate gap between Fear and Greed isnāt large enough to justify a wholesale strategy change).
3 - When FGI ā¤25: performance is near the average; focus on order management rather than trying to ābottom-fish sentiment.ā
š§ Conclusion
FGI does not directly determine win rate, but itās a useful signal to adjust TP/SL expectations. Avoid extremes during āExtreme Greedā and maintain target discipline to keep scalping performance steadier.
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