About Our App
WatchDogs utilizes a simple,
interactive interface to provide you with the latest
data relating to high-profile investors’ trades. Directly from
the SEC, WatchDogs relays information regarding “inside” investors
and their recent trades, as well as provides computed values such
as an individual’s net profit from a stock at time of trade and a
ranking of individuals most likely recently involved in insider trading.
The computed “suspicion ranks” are determined using multiple factors
(including recent trade profitability and investor connectedness)
and a complex algorithm. For added convenience, YOU choose the
timeframe WatchDogs considers when analyzing trade data. WatchDogs
makes insider trade data accessible to the public, and provides
low-level intuition regarding which investors are more and less
likely to be committing unlawful insider trading.
It is important to remember that suspicion
ranks returned by WatchDogs’ algorithm DO NOT prove--or even suggest--that
an individual has engaged in insider trading. WatchDogs suspicion
ranks should not be interpreted as indication of an individual’s
participation in illegal activity. WatchDogs data, including suspicion ranks,
cannot be used as evidence in legal proceedings. Please use WatchDogs
as it is intended, and use discretion when interpreting algorithmic
results.
The Data
WatchDogs uses data retrieved from SEC.gov’s
EDGAR API. Trades analyzed by WatchDogs are of the type Form 4,
meaning the filing individual is an “insider” (e.g. the CEO) at
the company whose stock they are trading. In-app data relating
to investors, trades, and profitability is accessible to the public via
the SEC, and only public data is input to the SuspicionRank algorithm.
Our Algorithm
WatchDogs suspicion rank represents the likelihood
of an individual being involved in insider trading. The SuspicionRank algorithm,
a derivative of Lary Page’s PageRank algorithm, considers “insiders” who similarly
trade stocks (within a given timeframe) as “linked”, while simultaneously
considering involved individuals’ net profit on their stocks at the time
of trade. (Obviously, an “inside” investor who makes a counter-productive
trade is not likely to be insider trading.)