Understanding Alert Types

Educational Resource: This guide explains how to interpret features in Profitelligence. Past performance does not guarantee future results. Nothing in this documentation constitutes investment advice.

Overview of Alert Categories

Profitelligence offers four main alert categories, each with extensive filtering options:

1. Insider Trading Alerts - Based on Form 4 filings
2. Company Actions Alerts - Based on 8-K filings
3. Opportunity Score Alerts - Based on score changes
4. Combined Alerts - Multiple conditions together

This guide provides comprehensive examples of each type with detailed configuration options.

Insider Trading Alerts

Basic Configuration Options

Core filters available:

Transaction Type:

• Buys only (A - Acquired)
• Sells only (D - Disposed)
• Any transaction (includes grants, options, transfers)

Insider Role:

• All roles
• Officers only (CEO, CFO, COO, etc.)
• Directors only (board members)
• 10% Owners only (major shareholders)
• Specific titles (e.g., CEO only, CFO only)

Transaction Size:

• No minimum

• $100,000

• $250,000

• $500,000

• $1,000,000

• Custom amount

Ownership Type:

• Any (direct or indirect)
• Direct ownership only
• Indirect ownership only

Scope:

• All companies
• Specific ticker(s)
• Any watchlist
• Specific watchlist(s)

Alert Example 1: Large Officer Purchases

Goal: Catch significant insider buying by C-suite executives

Configuration:

    
    Type: Insider Trading Alert
Transaction: Buys only
Role: Officers only
Minimum Amount: $500,000
Ownership: Direct only
Scope: All companies
Notification: Email immediate + Push

  

What triggers: CEO, CFO, COO, or other officers buying $500K+ of stock in their personal accounts

Why this matters: Officers have the most detailed operational knowledge. Large personal purchases show exceptional conviction.

Historical context: When officers buy $500K+ of their own company, historical data shows stocks outperform market average over following 3-6 months.

False positive considerations:

• Check for 10b5-1 plan notation (pre-planned)
• Verify it's open market purchase, not option exercise
• Consider if part of compensation package

Alert Example 2: CEO Buying Only

Goal: Track only the top executive's transactions

Configuration:

    
    Type: Insider Trading Alert
Transaction: Buys only
Title: CEO only
Minimum Amount: $250,000
Scope: All companies
Notification: Email immediate

  

What triggers: Only CEOs buying $250K+ (excludes CFOs, other officers)

Why this matters: CEO is the ultimate authority on company direction. Their personal buying is the strongest insider signal.

Pro tip: Track whether CEO has history of well-timed purchases at this company. Some CEOs are better market timers than others.

Alert Example 3: Clustering Detection

Goal: Identify when multiple insiders buy simultaneously

Configuration:

    
    Type: Insider Trading Alert (Advanced)
Transaction: Buys only
Role: Officers or Directors
Minimum Amount: $100,000
Clustering: 3+ insiders within 5 days
Scope: All companies
Notification: Email immediate + Push

  

What triggers: Three or more officers/directors buying $100K+ within a 5-day window

Why this matters: Clustering historically precedes significant price moves. Multiple insiders independently reaching same conclusion suggests shared positive outlook.

Example scenario: After Q3 earnings, CEO buys $500K, CFO buys$200K, two directors each buy $150K - all within 3 days. Strong coordinated bullish signal.

Alert Example 4: Watchlist Insider Activity

Goal: Monitor all insider activity for stocks you own

Configuration:

    
    Type: Insider Trading Alert
Transaction: Any (buys or sells)
Role: All
Minimum Amount: $100,000
Scope: "Active Positions" watchlist
Notification: Email digest (daily 8am)

  

What triggers: Any insider at any of your holdings trading $100K+

Why this matters: Risk management. Know when insiders at companies you own are selling heavily.

Use case: You own 10 stocks. This alert sends one email each morning summarizing all insider activity across your portfolio.

Alert Example 5: Opportunistic Buying

Goal: Catch insiders buying when stock is down significantly

Configuration:

    
    Type: Insider Trading Alert (Advanced)
Transaction: Buys only
Role: Officers only
Minimum Amount: $250,000
Price Condition: Stock down >10% in last 30 days
Scope: All companies
Notification: Email immediate

  

What triggers: Officers buying $250K+ when stock has declined 10%+ recently

Why this matters: Insiders buying during sell-offs often indicates they view the decline as overdone. "Catching the falling knife" with inside knowledge.

Historical pattern: Insider buying near 52-week lows has strongest historical correlation with subsequent outperformance.

Company Actions Alerts

Basic Configuration Options

Core filters available:

Impact Level:

• High only (major strategic events)
• Medium or High
• Any impact level

Event Tags:

• All tags
• M&A (mergers, acquisitions, divestitures)
• Leadership (CEO, board changes)
• Financial (guidance, restructuring, material agreements)
• Legal (lawsuits, regulatory actions)
• Product (launches, recalls)
• Customer (major wins/losses)

Company Size:

• Any market cap
• Large cap only (>$10B)
• Mid cap only ($2B-$10B)
• Small cap only (<$2B)

Sector:

• All sectors
• Specific sector(s)

Scope:

• All companies
• Specific ticker(s)
• Any watchlist
• Specific watchlist(s)

Alert Example 6: M&A Announcements

Goal: Catch all merger and acquisition announcements for event arbitrage

Configuration:

    
    Type: Company Actions Alert
Impact: Medium or High
Tags: M&A only
Scope: All companies
Notification: Email immediate + Push

  

What triggers: 8-Ks announcing:

• Acquisitions (company buying another)
• Mergers (company combining with another)
• Divestitures (selling off divisions)
• Strategic partnerships with equity investments

Why this matters: M&A creates trading opportunities:

• Arbitrage spread between deal price and current price
• Acquiring company reaction (often negative short-term)
• Sector implications (consolidation trend?)

Pro tip: Read the deal terms carefully - cash vs. stock, timeline to close, regulatory hurdles.

Alert Example 7: Leadership Changes

Goal: Track CEO and CFO transitions

Configuration:

    
    Type: Company Actions Alert
Impact: High only
Tags: Leadership only
Scope: All companies
Notification: Email immediate

  

What triggers: 8-Ks announcing:

• CEO resignation or appointment
• CFO changes
• Chairman of Board changes
• Mass director departures

Why this matters: Leadership transitions create uncertainty or opportunity:

• New CEO often means strategic shift
• Sudden departure can indicate problems
• Outside hire vs. internal promotion matters

Cross-reference: After this alert triggers, check Insider Trading Dashboard - does new leader buy stock immediately? Strong signal.

Alert Example 8: Watchlist Material Events

Goal: Know when anything significant happens at your research candidates

Configuration:

    
    Type: Company Actions Alert
Impact: Medium or High
Tags: Any
Scope: "Research Queue" watchlist
Notification: Email immediate

  

What triggers: Any medium or high-impact 8-K for stocks you're researching

Why this matters:

• Positive event: Accelerates your buying decision
• Negative event: Removes stock from consideration
• Neutral event: Adds to your knowledge base

Workflow: Alert fires → Read AI summary → Decide: Add to watchlist, remove from queue, or investigate deeper

Alert Example 9: Small Cap Events

Goal: Focus on material events at smaller companies (higher volatility)

Configuration:

    
    Type: Company Actions Alert
Impact: High only
Company Size: Small cap (<$2B) only
Tags: Any
Scope: All companies
Notification: Email digest (daily)

  

What triggers: Major events at small cap companies only

Why this matters: Small caps:

• React more dramatically to events (less analyst coverage)
• Higher potential returns
• Higher risk
• Less efficient pricing

Strategy: Daily digest gives you morning list of small cap catalysts to research.

Alert Example 10: Sector-Specific Events

Goal: Track all activity in a sector you trade

Configuration:

    
    Type: Company Actions Alert
Impact: Medium or High
Sector: Technology
Tags: Any
Scope: All companies
Notification: Email digest (daily)

  

What triggers: Any meaningful event at any tech company

Why this matters:

• Spot sector trends early (multiple bankruptcies? consolidation?)
• Understand competitive dynamics
• Find relative value (who's executing well vs. struggling?)

Use case: Sector specialist traders staying current on their industry.

Opportunity Score Alerts

Basic Configuration Options

Core filters available:

Score Conditions:

• Score crosses above threshold (e.g., >75)
• Score crosses below threshold (e.g., <40)
• Score increases by X points (e.g., +15)
• Score decreases by X points (e.g., -20)

Confidence Requirements:

• Any confidence level
• Confidence >50%
• Confidence >70%
• Confidence >85%

Direction:

• Any direction (bullish or bearish)
• Bullish only
• Bearish only

Scope:

• All companies
• Specific ticker(s)
• Any watchlist
• Specific watchlist(s)

Alert Example 11: High-Quality Setups

Goal: Find new high-conviction opportunities

Configuration:

    
    Type: Opportunity Score Alert
Condition: Score rises above 75
Confidence: >70%
Direction: Bullish only
Scope: All companies
Notification: Email immediate

  

What triggers: Any stock where opportunity score crosses 75 with confidence above 70%

Why this matters: Score 75+ with confidence 70%+ = "Best" category opportunities in our system. Historical patterns are strong and well-tested.

Workflow: Alert fires → Review underlying drivers → Check for insider activity → Add to watchlist or position

Alert Example 12: Score Spikes

Goal: Catch sudden large score increases (new catalyst emerged)

Configuration:

    
    Type: Opportunity Score Alert
Condition: Score increases by +20 points or more
Confidence: Any
Direction: Any
Scope: All companies
Notification: Email immediate + Push

  

What triggers: Any stock where score jumps 20+ points in one update

Why this matters: Large rapid increases often indicate:

• New insider buying cluster
• High-impact 8-K filed
• Multiple drivers aligning simultaneously

Pro tip: When you get this alert, immediately check what caused the spike - was it insider activity? 8-K? Both?

Alert Example 13: Portfolio Score Deterioration

Goal: Know when conviction is fading for stocks you own

Configuration:

    
    Type: Opportunity Score Alert
Condition: Score falls below 50
Confidence: Any
Direction: Any
Scope: "Active Positions" watchlist
Notification: Email immediate

  

What triggers: Any of your holdings dropping into "moderate" or "weak" score territory

Why this matters: Risk management. Opportunity fading might be early warning sign.

Action: Doesn't mean "sell immediately" - means "investigate why conviction is dropping."

Alert Example 14: Watchlist Score Improvements

Goal: Track improving setups in your research pipeline

Configuration:

    
    Type: Opportunity Score Alert
Condition: Score increases by +10 points or more
Confidence: >60%
Scope: "Research Queue" watchlist
Notification: Email digest (daily)

  

What triggers: Stocks you're researching showing improving patterns

Why this matters: You're already interested in these stocks. Score improvements push them toward actionable territory.

Workflow: Morning digest shows which research candidates improved overnight → Prioritize those for deeper analysis today.

Alert Example 15: High-Confidence Changes

Goal: Only alert on score changes backed by strong statistical evidence

Configuration:

    
    Type: Opportunity Score Alert
Condition: Any score change >15 points
Confidence: >85%
Direction: Bullish only
Scope: All companies
Notification: Email immediate

  

What triggers: Significant bullish score changes with very high confidence

Why this matters: Confidence 85%+ means the pattern has been verified many times. These are the most reliable signals statistically.

Use case: Conservative traders who want highest-quality signals only.

Combined Alerts

Alert Example 16: Event + Insider Validation

Goal: Catch material 8-Ks followed by insider buying

Configuration:

    
    Type: Combined Alert
Condition 1: High-impact 8-K filed
Condition 2: Officer buying >$250K
Timeframe: Within 5 days of each other
Scope: All companies
Notification: Email immediate + Push

  

What triggers: Major corporate event + insider putting money to work shortly after

Why this matters: Strongest conviction signal - public event + insider validation with their own capital.

Example: Company announces new $500M contract (8-K). Three days later, CEO buys$1M of stock. Message: "This contract is as good as it sounds."

Alert Example 17: Opportunity + Activity Confirmation

Goal: Score spike confirmed by insider or company action

Configuration:

    
    Type: Combined Alert
Condition 1: Score increases >15 points
Condition 2: Either (8-K filed OR Insider buying >$100K)
Timeframe: Same day or next day
Scope: All companies
Notification: Email immediate

  

What triggers: Opportunity score jump with same-day/next-day catalyst or insider activity

Why this matters: Score increases are driven by events and insider activity. This alert finds cases where you can see both the score and the underlying cause immediately.

Efficiency: Instead of separate alerts for scores and events, one alert captures complete picture.

Alert Example 18: Multi-Signal Watchlist Alert

Goal: Comprehensive monitoring of portfolio holdings

Configuration:

    
    Type: Combined Alert
Conditions: Any of the following:
  - Insider activity >$100K
  - Medium/High impact 8-K
  - Score change >10 points
Scope: "Active Positions" watchlist
Notification: Email digest (daily 8am)

  

What triggers: Anything material happening at your holdings

Why this matters: One alert, one daily email, complete portfolio coverage.

Morning routine: Read digest → See everything relevant across all holdings → Prioritize which to investigate.

Alert Example 19: Bearish Setup Alert

Goal: Identify deteriorating situations (short candidates or exit signals)

Configuration:

    
    Type: Combined Alert
Condition 1: Score falls below 40
Condition 2: Insider selling >$500K by officers
Timeframe: Within 7 days
Direction: Bearish
Scope: All companies
Notification: Email immediate

  

What triggers: Weak/declining opportunity score + significant insider selling

Why this matters: Combined bearish signals rare but powerful. When insiders sell heavily AND score deteriorates, historical outcomes often negative.

Use cases:

• Short selling candidates
• Exit signals for long positions
• Risk-off sectors to avoid

Alert Example 20: Sector Rotation Signal

Goal: Detect when smart money shifts to a sector

Configuration:

    
    Type: Combined Alert (Advanced)
Conditions: Within same sector:
  - 3+ stocks with score increases >15 points
  - 2+ stocks with officer buying >$250K
Timeframe: Within same 5-day period
Sector: Any
Notification: Email immediate

  

What triggers: Clustering of positive signals across a sector

Why this matters: Sector-wide improvements can precede rotation into that sector. Multiple stocks showing strength = theme developing.

Example: Healthcare sector: 4 biotech stocks see score jumps, 3 have CEO buying - could indicate sector poised to lead.

Building Your Alert Strategy

Start with Core Alerts

Week 1: Setup these essentials

1. Large officer buys (>$500K, all companies)
2. High-impact 8-Ks (watchlist only)
3. Score crosses above 75 (watchlist only)

Result: Core coverage without alert overload

Add Targeted Alerts

Week 2-4: Based on your strategy

If you're an event trader:

• M&A alerts (all companies)
• Leadership change alerts
• Combined event + insider alerts

If you're a momentum trader:

• Score spike alerts (+20 points)
• Insider buying clusters
• Watchlist score improvements

If you're a value investor:

• Insider buying during declines
• Sell-off + high confidence score alerts
• Long-term score improvements

Match alerts to your style.

Refine Based on Results

Monthly review:

• Which alerts led to profitable ideas?
• Which were false positives or noise?
• Adjust thresholds, filters, or delivery method

Continuous improvement of your alert setup.

Next Steps

Now that you understand all alert types, explore the Daily Digest for a complementary approach - comprehensive morning summaries delivered via email.

Want to organize the stocks you're tracking? Review Watchlist Management to structure your monitoring strategy.