How Form4 Works

Tons of websites/newsletters track insider trades, but Fomr4 is the only one that calculates the historic returns (and other data) for every insider to know which insiders tend to buy the stock before it pops.

Data

We track insider trades filed on SEC Form 4s. Every CEO, CFO, director, and 10% owner must disclose their trades within 2 business days. These filings show where the smart money is moving—and we monitor them in real time.

Scoring

Not all insider trades are worth your attention. We use a proprietary scoring system to filter the noise and surface the highest-conviction trades.

Our system looks at:

  • Historic trade returns for the insider

  • Historic win rates (i.e. pct of previous trades with positive returns)

  • Number of trades (the more trades an insider has made while having good returns and win rates, the better)

  • Size of the trade (the bigger the better)

  • etc

Every insider trade is given a score of 0-3. A score of 0 means the trade is not a “top” trade and is not included in my emails/spreadsheets. A score of 1-3 means the trade is considered a “top” trade. The higher the score, the better the trade.

For reference: trades with a score of 1 are in the top 33% of all insider trades, a score of 2 is in the top 15%, and a score of 3 is in the top 5%.

Timeframe

Our analysis focuses on 1-month and 3-month timeframes—the sweet spots where insider buying tends to have the greatest impact.

The result? You get a clear, actionable shortlist of insider trades most likely to outperform in the short term.