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Open methodology. Public data. Rigorous filtering.

ClusterSignal is powered by SEC EDGAR Form 4 filings and enriched with Yahoo Finance market context. We document exactly how clusters are detected, scored, and filtered — so you can evaluate the signal quality yourself.

Data sources

All insider transaction data is extracted from public SEC EDGAR Form 4 filings. These mandatory disclosures cover open-market purchases, sales, option exercises, and other transactions by company insiders (executives, directors, and 10%+ holders).

Market context — current price, 52-week range, market cap, P/E ratio, earnings dates, and sector/industry — is fetched from Yahoo Finance and cached per ticker. News headlines are pulled from the same source. We do not use any non-public, proprietary, or insider-only sources.

Detection methodology

A cluster is flagged when 3 or more distinct insiders file Form 4 open-market transactions (purchases or sales) for the same company within a rolling 5-day window.

Transaction floors eliminate noise before cluster detection runs. Trades under $5,000 total value are ignored for all insiders. VP and Director-level trades under $10,000 are excluded. CEO and CFO trades under $25,000 are excluded. The aggregate cluster value must exceed $50,000 before a cluster is created.

The poller scans SEC EDGAR every 5 minutes using the EFTS feed. New Form 4 filings are parsed for non-derivative transactions, stored, and immediately evaluated for cluster patterns. Existing clusters are not duplicated — each unique combination of ticker, direction, and overlapping window is stored once.

Scoring methodology

Each cluster receives a 0–100 score from six independently weighted factors:

  • Insider Count (up to 60 pts): 15 pts per distinct insider. The single highest-weight factor — coordination matters more than any individual trade.
  • Seniority (up to 42 pts): CEO scores 42, CFO 38, President 32, VP 14, Director 10. C-suite insiders carry roughly 3× the weight of VPs or Directors, reflecting their broader information advantage.
  • Capital Deployed (up to 22 pts): Scale-adjusted. $2M+ cluster earns 22 pts. $50K earns 2 pts. Larger real-money commitment correlates with higher conviction.
  • Time Velocity (up to 15 pts): Trades in a single day score 13–15 pts. Trades spread over 3+ weeks score 0. Tight compression is rare and statistically meaningful.
  • Filing Speed (up to 12 pts): Insiders who file the same day as their trade earn maximum points. Voluntary prompt disclosure suggests the insider chose visibility.
  • Win Rate (up to 22 pts): Historical 90-day returns from prior clusters by the same insiders on the same ticker. Only computed when enough prior data exists.

Grade thresholds: A (≥80), B (≥50), C (<50).

Short Radar

SOLD clusters and SHORT RADAR clusters are distinct. Short Radar is reserved for sell clusters that pass additional filters: $250,000+ aggregate value with 3+ distinct sellers, or C-suite sellers with a lower threshold. These filters are designed to separate large coordinated liquidations from routine diversification or tax-driven sales.

ClusterSignal also parses Form 4 footnotes to detect 10b5-1 plan language. Routine pre-scheduled plan sales are noted as such. Amended or modified 10b5-1 plans are treated as higher-conviction, since the insider voluntarily changed a pre-committed program.

What the scores are not

Scores are research inputs, not investment recommendations. A Grade A cluster does not mean a stock will go up. A Short Radar flag does not mean you should sell or short. Insider activity is one signal among many. Evaluate each cluster alongside earnings context, valuation, sector trends, and your own research.

Past cluster patterns do not guarantee future results. ClusterSignal is not a registered investment advisor. Nothing on this site is financial advice.