This morning, the editor saw a news flash:
According to data from Alternative.me, today's cryptocurrency Fear and Greed Index has risen to 66 (yesterday it was 65), indicating that the market is still in a "Greed" state.
Every time I see this kind of content, I can't help but ponder a couple of questions in my heart—how is the market's "greed" quantified?
This so-called "greed index" is actually a composite sentiment indicator. It takes into account multiple dimensions such as volatility, volume, Google Trends, social media popularity, Bitcoin share, etc., and finally comes up with a value between 0 and 100. The higher the value, the more excited and greedy the market is; Otherwise, the more panicked. I don't know if you have thought the same as the editor:
Is it possible for this indicator to be "put to use"? Moreover, can it be developed into a quantitative strategy?
Real-world problem: cannot be obtained in real time, and modeling is difficult.