Visualisation of Insider Trades, Python, SEC-Api.io

[newsfilter]

- Reed Hastings (CEO, Netflix) sold $15M of his shares 2 days before a class action lawsuit hit the company and the stock crashed

- Mark Zuckerberg (CEO, Facebook) sold $296M of his shares before the stock plunged

I was curious to see if I can discover patterns using SEC filings of type 4 (changes in ownership, aka insider trades) and developed a Python app to do so.

Do you think that's a path worth exploring further? Maybe even backtesting and developing an algo to trade on signals derived from SEC filings? Did anyone already test a similar approach using SEC filings as trading signals?

Python notebook (runs in your browser): https://mybinder.org/v2/gh/janlukasschroeder/insider-trading-python-tutorial/master?filepath=%2FSEC%2BAPI%2BDemo.ipynb

My Medium article with more information on SEC 4 filings: https://medium.com/@jan_5421/insider-trading-visualised-with-python-sec-api-io-5f12a7799b3e

[algodaily]

I think this is a super cool initiative, but you'll find a lot of false positives since there's a lot of scrutiny around these guys already.