Equity Regime Insider Activity Filter
Updated: Feb 19
liquidity-conditioned insider signal framework
Equity Regime Insider Activity Filter — Rule Set
Rule 1 — Macro Permission
Insider accumulation is actionable only when the prevailing liquidity regime does not impose systemic contraction.The filter first evaluates whether macro conditions allow micro-level signals to transmit into price discovery.
Rule 2 — Structural Liquidity Integrity
Signals are downgraded when liquidity becomes segmented across public and private markets.If capital is absorbed by opaque financing channels or leverage-dependent structures, insider activity may reflect valuation awareness without near-term price impact.
Rule 3 — Structural Resilience Override
Exception approval is granted when the underlying company demonstrates structural immunity to macro liquidity drag.This includes durable pricing power, strategic capital positioning, or fundamental decoupling from cyclical liquidity cycles.
Rule 4 — Signal Quality Hierarchy
Insider signals are ranked by informational value rather than transaction magnitude alone.Role proximity, signal rarity, and alignment across participants determine the reliability tier of each signal.
Rule 5 — Liquidity Transmission Test
Before validation, the filter assesses whether sufficient market liquidity exists for insider conviction to translate into price action.Signals failing transmission conditions are retained as latent indicators rather than execution triggers.
Rule 6 — Temporal Decoupling Principle
Insider activity may precede market recognition by extended periods.The filter distinguishes between valuation signaling and timing confirmation, preventing premature execution based solely on insider transactions.
Rule 7 — Regime Interaction Layer
All insider signals are interpreted within the broader regime matrix.Macro liquidity status, financial stability dynamics, and leverage concentration determine whether signals act as catalysts, confirmations, or background information.
Rule 8 — Final Validation Pathway
Execution eligibility requires convergence between insider activity and liquidity telemetry.Absent such convergence, signals remain informational inputs within the regime assessment framework.
Equity Regime
A framework dedicated to identifying market structure and regime shifts through risk tolerance.
The EQ Trend Indicator (EQTI) evaluates structural conditions rather than price direction, enabling earlier recognition of transitions in the market environment.
It defines regimes — not trades.
