Understanding Our Signals

What is Sentiment?

Sentiment measures the overall emotional tone of Reddit discussions about a stock ticker. It ranges from -1 (very bearish) to +1 (very bullish), reflecting whether the community is optimistic or pessimistic about a stock's prospects.

How it's calculated:

We use natural language processing (NLP) to analyze each Reddit post mentioning a ticker. Each post receives a sentiment score between -1 and +1. We then average all sentiment scores over the last 24 hours and convert it to a percentage (0-100%) for easier understanding.

Sentiment Categories:

• Very Bullish (76-100%): Extremely positive sentiment
• Bullish (56-75%): Generally positive sentiment
• Neutral (46-55%): Mixed or neutral sentiment
• Bearish (26-45%): Generally negative sentiment
• Very Bearish (0-25%): Extremely negative sentiment

What is Momentum?

Momentum measures the rate of change in mentions over time, showing whether discussion about a ticker is accelerating or slowing down. It helps identify tickers that are gaining or losing traction in the community.

How it's calculated:

We compare the number of mentions in the last hour to the average mentions per hour over the last 24 hours. The momentum ratio shows how many times faster (or slower) the current discussion rate is compared to the baseline.

Example: If a ticker has 100 mentions in the last hour and averaged 25 mentions per hour over the last 24 hours, the momentum would be 4.0x (indicating 4x the normal discussion rate).

What it means:

• High Momentum (>2.0x): Discussion is accelerating rapidly
• Normal Momentum (0.5x-2.0x): Discussion rate is stable
• Low Momentum (<0.5x): Discussion is slowing down

What is Alpha Score?

Alpha Score is a blended signal that combines mentions, sentiment, and momentum into a single composite metric (0-100). It helps identify tickers with genuine momentum and community interest, filtering out noise to focus on opportunities with the strongest potential for price movement.

How it's calculated:

Alpha Score uses a weighted formula that combines three components:

• 50%Mentions Score: Relative to the ticker with the most mentions in the last 24 hours
• 30%Sentiment Score: Converted from -1 to +1 scale to 0-100%
• 20%Momentum Score: Scaled from the momentum ratio (1.0x ≈ 50 points)

Final Score = (0.5 × Mentions) + (0.3 × Sentiment) + (0.2 × Momentum)

Why Alpha Score?

Alpha Score helps you identify tickers with genuine momentum and community interest, filtering out noise to focus on opportunities with the strongest potential for price movement. A high Alpha Score indicates a ticker that is:

• Frequently mentioned (high visibility)
• Positively discussed (bullish sentiment)
• Gaining traction (accelerating momentum)