$AKE |All-accounts long/short ratio 0.83|Long 45.3% / Short 54.7%
How should you interpret the all-accounts long/short ratio? The total number of long positions and short positions in the entire market is always equal. A ratio above 1 simply means that more accounts hold long positions, while short positions are concentrated in fewer accounts.
Extreme long/short ratios can persist for a long time. Trading against the trend based on the ratio alone often comes at a high cost.
When trading with leverage, first work out whether you can withstand the worst-case scenario, then consider what the signals are saying.