Definition. Short-Term Holder (STH) Profit/Loss Ratio is the ratio of Short-Term Holder Supply in Profit to Short-Term Holder Supply in Loss.

Interpretation. Similar to SOPR, the STH Profit/Loss Ratio surfaces local bottoms in bull markets and local tops in bear markets via the short-term holder cohort. A reading of 1.0 marks the boundary between aggregate profit and aggregate loss across the short-term holder cohort.

Notes. First put forward by ARK Invest.

This is the Point-in-Time (PiT) variant of Short-Term Holder Profit/Loss Ratio. PiT metrics are strictly append-only and their history is immutable. The historic data does not necessarily reflect the best current knowledge, but the information at the time when a data point was first computed. PiT metrics are ideal candidates for applications in model backtesting and related quantitative purposes. Read our article on PiT metrics for more information.