📊 WIN-RATE ANALYSIS BASED ON FEAR & GREED INDEX

Analyzing 331 days (July 3, 2024 – May 28, 2025), I correlated daily community win-rate data with the Fear & Greed Index to determine trading performance across market sentiment phases:

Average Win-Rate:

Fear: 45.13%

Extreme Fear: 44.57%

Neutral: 44.52%

Greed: 44.29%

Extreme Greed: 41.77%

🔑 Key Insights:

• Fear yielded the highest win-rate as traders carefully managed risks and selected signals cautiously.

• Extreme Fear also provided stable results, emphasizing disciplined risk management.

• Win-rates declined significantly from Greed to Extreme Greed, indicating higher risks of FOMO and bull-traps.

🚩 Strategic Recommendations:

• Fear/Extreme Fear: Short-term trades, clear risk-reward ratios, disciplined stop-loss, ideal for reversal signals.

• Neutral: Good liquidity; suitable for optimizing strategies and controlled volume increases.

• Greed: Avoid chasing prices; trade corrections with trailing-stops and quick profits.

• Extreme Greed: Prioritize profit protection, minimal leverage, flexible position management.

📌 Conclusion:

Market sentiment greatly affects trading outcomes. Monitoring the Fear & Greed Index closely and adjusting your strategy accordingly often outperforms relying purely on price movements.

#TradingInsights #FearAndGreed #RiskManagement