I built a WallStreetBets Fear and Greed Index via /r/wallstreetbets #stocks #wallstreetbets #investing


I built a WallStreetBets Fear and Greed Index

I’ve seen people relying pretty heavily upon CNN’s Fear and Greed Index, which is an attempt at quantifying how fearful or greedy traders are. The general idea is that you want to be greedy when others are fearful, and vis-a-versa.

I thought it would be fun to try to replicate it, but with the goal of quantifying WallStreetBets fear and greed, instead of the fear and greed of the market as a whole. To do so, I used WallStreetBets discussion data, and built my own metric to quantify the overall sentiment of the sub.

Here’s a link to a dashboard I built showing the current value of the index, and its movement over time. WSB has tended to fall on the “greed” side of the index for the past few years, although there have been several periods in which sentiment has dipped (including over the past few days.)

If there is significant interest I’ll take a deeper dive into the methodology, but I didn’t want to scare anyone off with a huge block of text.

Submitted February 23, 2022 at 04:03AM by pdwp90
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