Question 1

What is an insider cluster?

Accepted Answer

A cluster is a window where three or more distinct insiders at the same company filed Form 4 transactions in the same direction (all buys or all sells) within 60 days. The cluster window resets after a same-direction gap.

Question 2

How is the conviction score calculated?

Accepted Answer

Conviction is a 0-100 ranking aid computed per cluster. For each insider it measures how much of their existing position the trade represents, multiplied by their role weight (CEO and CFO weigh more than directors), multiplied by the source weight of the trade: open-market purchases and standalone sales count fully, cashless option exercises count less, and 10b5-1 planned trades are excluded entirely. Those weighted per-insider scores are averaged across the cluster, then nudged for cluster size and dollar materiality versus the company market cap. The score runs through a saturating curve so the top of the scale is reserved for combinations that essentially do not occur in real markets. Strong-but-typical clusters land in the high 80s rather than pegging at 100. It is not investment advice, not a prediction, and not a recommendation.

Question 3

Are 10b5-1 planned trades included in the conviction score?

Accepted Answer

No. Trades flagged as 10b5-1 are excluded from the conviction calculation because they were scheduled in advance and do not represent a current decision. The underlying transactions still appear in the filings list with their 10b5-1 flag preserved.

Question 4

How often are clusters recomputed?

Accepted Answer

Clusters are rebuilt hourly from the SEC EDGAR Form 4 feed. The "Data as of" timestamp on the page shows the exact build time.