This afternoon I came across $ZRO : up 21.6% to 2.463, just 0.8% below today’s high. I used to love chasing charts that hugged the highs like this. But this time, I’m looking at another set of numbers first: today’s futures trading volume was $96.23 million, with $58.81 million in open interest—that’s a turnover ratio of just 1.64x. Meanwhile, RSR, which also surged today, had $172 million in futures trading volume and only $11.28 million in open interest, for a turnover ratio of 15.2x. That’s nearly a 9x difference.
In plain terms, this rally wasn’t driven by repeated trading pushing the price up. It’s a pile of newly opened futures positions sitting there, not closed out.
I used to jump in just by looking at the percentage gain, and then watch it drop back the next day. It hurt. This time, I checked the turnover ratio first, so I didn’t chase. I don’t hold any right now, and I’m not planning to chase it here.
Do you look at the price gain first, or the turnover ratio?
#数据视角 #Retail trader life
In plain terms, this rally wasn’t driven by repeated trading pushing the price up. It’s a pile of newly opened futures positions sitting there, not closed out.
I used to jump in just by looking at the percentage gain, and then watch it drop back the next day. It hurt. This time, I checked the turnover ratio first, so I didn’t chase. I don’t hold any right now, and I’m not planning to chase it here.
Do you look at the price gain first, or the turnover ratio?
#数据视角 #Retail trader life