Profits from following corporate insider buying and selling patterns
| Strategy Type | Insider Transaction / Smart Money Tracking |
| Market Outlook | Profits from following corporate insider buying and selling patterns |
| Risk Profile | Moderate - insider activity is signal not guarantee |
| Reward Profile | Potential for significant gains following informed insiders (20-50%+ annually) |
| Time Horizon | Medium to long-term (weeks to months) |
| Iv Environment | N/A - primarily equity/futures based |
| Breakeven | Depends on insider signal accuracy and position management |
| Primary Instruments | US stocks via CFDs, S&P 500 E-mini, NASDAQ 100 E-mini, Sector ETFs |
| Mas Compliance | MAS regulated brokers required for CFD/futures trading |
| Trading Hours | US market hours 9:30 PM - 4 AM SGT; insider filings available 24/7 |
| Contract Size | E-mini S&P: USD50 per point; Single stock CFDs vary |
| Settlement | Cash settled |
| Tax Treatment | No capital gains tax for individuals in Singapore |
| Margin Requirements | Standard CFD/futures margin |
| Cdp Account | Not required for CFD/futures |
| Singapore Relevance | SEC Form 4 filings available online - Singapore traders can monitor US insider activity and trade during evening SGT hours |
We track legal insider trading - when corporate insiders (officers, directors, large shareholders) buy or sell company stock and disclose it via SEC Form 4 filings.
Insiders know their company better than anyone. Academic research shows insider buying outperforms the market by 6-10% annually. They only buy if they expect the stock to rise.
When 3 or more insiders buy within 30-90 days. This is the strongest signal because multiple people independently decided the stock is undervalued.
SEC EDGAR (free), OpenInsider, Finviz, WhaleWisdom. Form 4 filings are public within 2 business days of transactions.
No. Most selling is routine - diversification, taxes, expenses. Focus on unusual patterns: cluster selling, unusual size, or timing before bad news.
Score by: insider rank (CEO=5, Director=3, VP=2), transaction size (>500K=3, >250K=2, >100K=1), cluster (3+=3, 2=2, single=1). Higher scores = stronger signals.
Pre-scheduled trading program allowing insiders to trade at set times. These trades are less informative because they're automated and not based on current information.
Use insider signals to identify candidates, then filter with fundamental screens (positive revenue, earnings quality, reasonable debt). Insider buying in quality companies is strongest.
Typically 90-180 days. Insider signals take time to play out. Research shows most alpha in first 60 days but holding longer captures full value.
Aggregate insider buying in a sector signals sector strength. Track net buying by sector and overweight sectors with heavy insider accumulation.
Mapping relationships between insiders (shared boards, past employers). Connected insiders buying together strengthens signals. Information flows through networks.
13D shows activist 5%+ stakes (bullish catalyst). 13F shows institutional quarterly holdings. Combine with Form 4 for complete picture of smart money.
Use 5-10 years of Form 4 data and prices. Walk-forward test with rolling windows. Measure by insider rank, size, cluster. Validate out-of-sample.
Insider signal alpha diminishes over time. Most value captured in first 30-60 days. Optimal holding period balances alpha capture vs decay.
Real-time filing processing, automated scoring, immediate alerts, algorithmic execution. Premium data feeds and sophisticated infrastructure.
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