Signal Performance

714 stories · 279 tickers · 2025-12-15 to 2026-05-28

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43.08%
7-Day Accuracy
441 signals
+9.06%
Avg Alpha When Right
vs SPY benchmark
1.42x
Win/Loss Ratio
Premium
+4.2pp
Consensus Edge
Premium

Methodology

How we measure: Every story generates a directional signal (bullish or bearish) on a specific ticker. We cluster signals on the same ticker within each measurement window and score the consensus direction against actual market outcomes, measured as excess return vs SPY.


What counts: ≥0.5% favorable excess return = outperformed. ≥0.5% adverse = underperformed. We require 10+ signals per window before reporting accuracy rates.


No LLM in scoring: All price data from Yahoo Finance. Scoring is pure math on real market data, computed daily, and cannot be retroactively modified.

Sample: Best Call

TickerHeadlineDirectionAlphaSourcesPublished
INTC Commerce Department Proposes Expanded AI Chip Export Fr... bullish +168.02% 1 2026-03-27

Performance by Horizon

WindowSignalsAccuracyAvg Alpha WinAvg Alpha LossW/L RatioExpected Alpha
1d 660 36.21% +5.23% -3.49% 1.5x -0.33%
7d 441 43.08% +9.06% -6.5% 1.39x +0.2%
30d 187 39.57% +20.27% -14.5% 1.4x -0.74%
60d 28 42.86% +45.47% -10.92% 4.16x +13.25%
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Methodology

Signal clustering: Signals on the same ticker published within N days of each other (where N = measurement window) form a cluster. If 67%+ agree on direction, the cluster is scored as a single signal. Mixed signals are excluded.


Accuracy rate: The percentage of scored clusters where the consensus direction outperformed SPY by ≥0.5% excess return. Underperformed = ≥0.5% adverse excess return. Between = neutral (excluded from accuracy).


Alpha metrics: Avg Alpha Win is the mean excess return on correct calls. Avg Alpha Loss is the mean excess return on incorrect calls. Win/Loss Ratio = Avg Win / Avg Loss — must exceed 1.0 for positive expected value. Expected Alpha = (accuracy × avg win) − ((1 − accuracy) × avg loss).


Consensus edge: The accuracy improvement when multiple independent sources reinforce the same signal vs single-source calls. A positive edge validates the multi-source pipeline.


Measurement windows: 1, 7, 30, 60, and 90 trading days. Short windows (1d) capture noise; 7-30d windows capture signal quality. Rates require 10+ signals to display.


Data integrity: All price data from Yahoo Finance. No LLM involvement in scoring — pure math on real market data. Scores computed daily and cannot be retroactively modified.

The Fourth Factor provides technology trend analysis and is not a registered investment advisor. All content is for informational purposes only and does not constitute financial advice. Past tracking accuracy does not guarantee future results. Always conduct your own research before making investment decisions.