Historical Test

We have processed data sets from many securities over the past 5 years so that we can validate that ghost patterns existence just before major economic and geo-political events. We have consistently seen ghost patterns emerge just before major price moves indicating that insiders have foreknowledge of events that are yet to occur and they are trading these events.

We have compiled a short list of a sample set of ghost pattern events and outline the circumstances surrounding the events and subsequent price moves.

In order to understand the predictive nature of our ghost patterns we must first describe the Anatomy of a Ghost Pattern.

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Here’s how the Ghost Pattern works: 

(a).  The algorithm identifies significant insider trades in a particular stock and tracks whether those trades are buys or sells. 

(b).  Bimini Road then monitors the pattern until the insider activity halts, which can last for months, weeks, days, or even hours, depending on whether the chart is daily or intraday.

(c).  Once an external event impacts the market, the stock price moves in the direction previously indicated by the Ghost Pattern. For example, if insiders were buying the stock, the price will rise. This movement often happens swiftly, triggered by breaking news from sources like Bloomberg, FT, Benzinga, CNBC, SeekingAlpha, or ZeroHedge.

Below is a link to an editorial style PDF written to better digest the back tests and their effects.

Bimini Road Back Test Sheets Download Link - easy viewing on mobile & desktop