New Insider Top 100 Algo Picks Page

Wilton • 2020-12-10 • Welcome • Public

As many of you know, I've been posting a list of top insider picks for a while now. These have been available on https://fintel.io/insiders/buying for a while now. However, one of the limitations of this list is that is uses raw dollar figures to rank insider trading activity, which is not a great metric for comparing companies.

I've started working on a new quant model that eliminates this issue. It does this by dividing the total insider shares purchased in the prior 90 days by the total float for a company, which normalizes the insider trading activity into a ratio that's comparable across all companies. This results in an apples-to-apples ranking.

This new leaderboard is located here -> https://fintel.io/insiders/picks

Now, I will advise you all that this is a new algo and there are still some things to iron out. One of the key issues that I'm seeing is that for a lot of companies, the ratio of insider buying / float is greater than 100%. Obviously this seems strange and I'm not exactly sure how we're getting this result, and I'm looking into the root cause of this. Nonetheless, the results are interesting and if you're looking for new trading ideas, this could be a new good start.

The url for the Top Algo Picks is -> https://fintel.io/insiders/picks

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Kommentarer (3)

GEORGE • 2020-12-11

"It does this by dividing the total insider shares purchased in the prior 90 days by the total float for a company" IMHO 90 days is huge - with one, two days we may still catch the action.

Wilton • 2020-12-11

George - I tried a few variants of this and the problem is that with most companies, a 1-2 day lookback window results in a zero value for most companies. I tried a week, a month, 2 months, and 90 days, and 90 days was the best. The reality is that if somebody makes a big purchase today it's still going to show up in the 90 day lookback window, so there's still an opportunity to catch the action. In my experience, price movements predicted by insider trading don't happen within a week, but rather after a month or two.

GEORGE • 2020-12-12

Thank you!

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