Cnn Fear and Greed Index as Trend Signal in Global Financial Markets

Behavioral finance has shown that investor sentiment affects markets, so the challenge is to measure investor sentiment and develop investment strategies that can be profitable in any market context. For this we have developed an algorithmic trading system that takes long or short positions depending on the position of the CNN Greed & Fear index. The backtests executed, using the available historical data, show that the system is profitable regardless of the index used, highlighting the profitability and efficiency with the European index and among them the CAC