Methodology

Attention Queue Algorithm

A ranked list of positions that need action, ordered by a 0–100 composite score. The queue blends factor drift, smart-money behavior, insider signals, filing red flags, and position importance. It is computed daily and refreshed when new data arrives (13F, insider filings, factor snapshots, alerts).

Scoring Model

We use a weighted linear blend, then normalize to 0–100 with time decay:

score = 100 * sigmoid( Σ w_i * s_i )
s_i ∈ [-1, +1] per signal
w_i from table below
time_decay = exp(-age_days / 14)
final_score = score * time_decay

Signals are clamped to [-1, +1]. Positive values mean “good”; negative values increase urgency. Scores below 50 are typically excluded from the queue (see thresholds).

Signal Weights

SignalWeightNotes
Factor drift (style/sector)24%Abs z-score vs target; penalize >1.5σ, cap at 3σ
Exit pressure (13F smart money)18%Top-decile holder net exits QoQ, holder IQ weighted
Insider sentiment14%Forms 3/4/5 severity × role × size; plan trades heavily discounted
Red flags (filings)12%Material weaknesses, going concern, auditor changes
Crowding / holder concentration10%Crowding score + HHI of top holders
Price action anomaly8%Gap move vs factor beta; large idio move
Liquidity / float squeeze7%Float share delta, short interest, borrow cost (when available)
User weight7%Position size in user portfolio; larger weights matter more

Weights are tuned to favor high-severity, slow-moving signals (red flags, exit pressure) over noisy intraday moves.

Thresholds & Gating

  • Visibility: items with score ≥ 50 enter the queue; scores below 40 are dropped.
  • Tier limits: Free shows top 3; Pro shows all; Premium shows all + history + alternatives.
  • Decay: 14-day half-life; severe red flags ignore decay for 7 days.
  • Rate limits: max 50 items/user to keep UI responsive; highest scores win.

Data Inputs

Market & Factors

Daily factor snapshots, price gaps, volatility spikes, style drift (size/value/momentum/quality/vol).

Smart Money

Holder IQ (13F) momentum, exit pressure, crowding scores, concentration HHI.

Insiders

Form 3/4/5 severity with role weighting, clustering, and 10b5-1 discounting.

Filings & Red Flags

Going concern, material weaknesses, auditor changes, litigation/SEC language.

Actionable Alternatives

For scores ≥ 50 we fetch factor-neutral substitutes via findAlternatives(). Premium shows full alternatives; Pro shows the top pick. Substitutes must be wash-sale-safe (for tax workflows) and meet a minimum factor similarity of 60%.

Refresh & APIs

  • Jobs: Nightly attention-queue refresh job + on-demand triggers after major events (new 13F, insider filing, factor drift alert).
  • API: GET /api/portfolio/attention-queue (tier gated).
  • Cache tags: attention-queue:{userId} for invalidation after updates.
Last updated: Dec 6, 2025← Back to Methodology Overview

Midas Edge methodology documentation. For research and educational purposes.

Not financial advice. Past performance does not guarantee future results.