Herd Detection identifies tickers where
3 or more politicians independently trade the same stock within a
30-day rolling window. When multiple members of Congress pile into the same ticker around the same time, it suggests they may be acting on shared information -- or following each other's trades.
However, historical analysis shows that
herd trades average -5.4% return. This is likely because by the time multiple politicians have traded, the information edge is already priced in. Herds indicate
crowded positions where you are likely late, not early.
Use this data to understand
what Congress is piling into -- but be cautious about following. The real alpha is in catching trades
before they become herds.
Severity color coding:
3-4 politicians (moderate)
5-7 politicians (crowded)
8+ politicians (extremely crowded)
