Feature - Adjust octobot risk according to fear and greed index

[WarriorWithin]

Octobot risk is static, so there is really no reason to leave it as it is unless is user's request. According to guidelines:

"The Risk parameter defines the behaviour of OctoBot in an optimism manner.

It is a value between 0 and 1:

A low risk (closer to 0) will make OctoBot a very safe trader with few bold moves and mostly small trades. A 0 risk bot is very pessimistic (regarding its orders creation) and does not expect big market moves.

A high risk (closer to 1) will make OctoBot a very active and heavy trader. A 1 risk bot is very optimistic (regarding its orders creation) and is expecting significative market moves"

There's a smart way to make "Risk" settings more efficient and it's called "Fear and Greed Index" imo which looks very tight to the above description.

How it should work? You add a button under "Risk" parameter to allow or not this feature.

If feature is allowed, you set anyway a max base parameter for your Risk (it means you accept Risk anycase up to your setting)

With this feature ON, the risk factor is multiplied by Fear and Greed index %. https://alternative.me/crypto/fear-and-greed-index/

You can see that % is expressed from 1 to 100. That mean that an index of 66% (like now) should be applied to your Risk settings as well if you allow this feature ON.

Example I set default max Risk to 0.5.

If index from the website is 66%, then the 0.5 is multiplied by 0.66 and so tweaked down to 0.33 (as looking it in the opposite way it's a -34% less risk should being considered).

Another way to implement this fear and greed index is in the daily trade mode like for other social indicators, but imo the best way is the aforementioned.

[Herklos]

Thanks @WarriorWithin. This is a very relevant point, we should definitely refactor the risk management in OctoBot. You think we should offer the possibility to disable risk management? It's a good idea to have a dynamic risk depending on market conditions. I like the greed and fear index. What do you think @GuillaumeDSM?

[WarriorWithin]

Hi, I am glad you like it. Imo risk shouldnt be set to "completely disabled" in any case. There should be allowed a tweak for the base parameter as aforementioned. Some users may or may not be prone to go max risk even if "fear and greed index" are at 1 hundred percent. For PRO users who wish take advantage by the feature they can leave Risk to 1 so the greed and fear index can go to max 1. But unconfident traders may take advantage of it with an offset of 50% max.

[GuillaumeDSM]

I really like the idea of using the fear and greed index ! We could use it in 2 ways:

1. As a social regular evaluator
2. As a way to interact with the risk setting on compatible trading modes

I think it can be really nice !

[WarriorWithin]

Yep also the social evaluator idea is great!

[damajor]

I see risk evaluator more global. For eg. when you detect great risk you may want to pause/stop all trading and/or maybe clear the trading orders queue.