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Disclaimer

Last updated: March 30, 2026

InsiderIQ provides data. We do not provide investment advice.

InsiderIQ is a data service. We monitor publicly available SEC Form 4 filings and use a quantitative algorithm to identify open-market stock purchases by corporate insiders that meet specific criteria. We deliver those signals to subscribers by email.

We are not registered investment advisers. Nothing from InsiderIQ — including alert emails, weekly digests, dashboard data, backtest figures, or any other communication — is investment advice, a securities recommendation, or an offer to buy or sell any security.

About our backtest figures

We report that qualifying signals produced +5.69% average alpha versus the S&P 500 at 90 days and a 57.7% hit rate across 2020–2025, based on 11,434 signals.

You must understand four things about these figures:

  • They are hypothetical. We applied our scoring algorithm retroactively to historical data. The strategy did not exist or operate during the test period.
  • They assume no transaction costs, no slippage, no market impact, and no position sizing. Real trading results will differ, potentially by a large amount.
  • Past results do not predict future performance. Signal quality can degrade as market conditions change.
  • Our signals have a significant small-cap tilt (Fama-French β_smb = +1.36, t = 11.06). A portion of the reported alpha reflects the historical small-cap size premium, not pure stock-selection skill. Investors applying these signals in a large-cap-only universe should expect materially compressed returns.

The SEC has cautioned that backtested results are inherently subject to look-ahead bias because the model is developed with knowledge of the historical outcome. We disclose this limitation directly.

Specific risks you should know

Insider purchases do not always predict positive returns.

  • Approximately 42.3% of our qualifying signals underperformed the S&P 500 over the 90-day window in our backtest.
  • Large transaction values do not indicate stronger signals. Our backtest found that purchases over $1 million significantly underperformed smaller purchases.
  • Signals based on public filings reflect information that others may have already acted on.
  • Any individual signal may result in a loss.

Get professional advice before you trade. We do not know your financial situation, investment objectives, or risk tolerance. Before making any investment decision, consult a licensed financial adviser.

Data accuracy. Our signal data comes from SEC EDGAR Form 4 filings. Filings may contain errors. Our parsing algorithm may misinterpret some filings. Always verify any signal against the original SEC filing at sec.gov before acting on it.