Data Methodology & Sources

Data Pipeline

InsiderCompass scrapes SEC EDGAR every two minutes during market hours, parsing Form 4 XML filings into structured transaction data. Each filing is enriched with issuer fundamentals, international revenue estimates, and cluster detection metadata.

Cluster Detection

A cluster buy is defined as two or more insiders purchasing stock in the same company within a 7-day sliding window, with total buy value exceeding $50,000. Cluster buys are one of the strongest insider trading signals identified in academic literature.

Discretionary Trade Classification

We classify each transaction as discretionary or routine based on the transaction code, 10b5-1 plan footnotes, and filing context. Only open-market purchases (code P) outside of pre-arranged plans are counted as discretionary activity.

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