How to Use ME10017: Sentiment in Trading

Sentiment extremes often mark reversals. Trade against the crowd.

Strategy: Fear/Greed Contrarian

def sentiment_signal():
    """Trade against sentiment extremes."""
    fear_greed = requests.get(f"{MADJIK_API}/metrics/ME10017/fear_greed/now", headers=HEADERS).json()
    
    index = fear_greed["value"]
    
    if index < 20:
        return {
            "signal": "EXTREME_FEAR",
            "action": "Accumulate BTC, IBIT - historically good entry"
        }
    elif index > 80:
        return {
            "signal": "EXTREME_GREED",
            "action": "Take profits, buy MSTR puts"
        }
    return {"signal": "NEUTRAL", "index": index}

print(sentiment_signal())

Risk Matrix

For informational purposes only. Not financial, investment, tax, legal or other advice.