$BTC ｜Fear & Greed Index 53｜Neutral｜Down 2 from yesterday
Before looking at position sizing, first understand the Fear & Greed Index.
The Fear & Greed Index compresses market sentiment into a number from 0 to 100: the closer to 0, the more pessimistic; the closer to 100, the more optimistic.
The sentiment index largely follows price: prices plunge first, then fear heats up. So it’s more of a reflection than a leading indicator.
Calculating position size backward from the stop-loss distance is much more reliable than placing orders based on gut feeling.
#BTC
Before looking at position sizing, first understand the Fear & Greed Index.
The Fear & Greed Index compresses market sentiment into a number from 0 to 100: the closer to 0, the more pessimistic; the closer to 100, the more optimistic.
The sentiment index largely follows price: prices plunge first, then fear heats up. So it’s more of a reflection than a leading indicator.
Calculating position size backward from the stop-loss distance is much more reliable than placing orders based on gut feeling.
#BTC