THE EDGE SCORE: 0–100 CATALYST AND VOLUME VELOCITY MODEL
The 0–100 Edge Score is an algebraic measure of catalyst conviction, relative volume velocity, and technical alignment—functioning strictly as a qualification filter, never as a price target or win probability.
Applies to morning candidate ranking (8:35 AM ET), intraday scan threshold filtering (55+ minimum cutoff), homepage score badges, and setup prioritization.
What the Edge Score measures
The Edge Score evaluates the structural quality of an emerging setup. It measures how cleanly an equity satisfies four distinct quantitative criteria:
Verifies direct regulatory filings (Form 4 insider purchases, Form 8-K material disclosures) or verified retail momentum velocity on Olyth.
Measures pre-market dollar participation and intraday relative volume (RVOL) to confirm institutional order flow backing the move.
Audits multi-timeframe moving averages (SMA 20/50/200), Wilder RSI(14) support, and relative strength performance against the S&P 500 benchmark.
Screens average daily dollar volume ($50M+ Tier 1, $2M+ event floor) and confirmed bid-ask spread tightness to ensure zero execution slippage.
What the Edge Score is not
Understanding what the score does not represent is essential to disciplined trading:
- Not a Price Target: An Edge Score of 88 does not predict a price increase to $88, nor does it forecast an 88% return. Price targets are determined exclusively by the trade level engine (
Target 1andTarget 2). - Not a Probability of Win: An Edge Score of 88 does not mean the trade has an 88% statistical probability of winning. In quantitative trading, edge operates over large sample distributions with defined risk-to-reward ratios; no single card carries certainty.
- Not Discretionary Sentiment: The score is never adjusted by human editorial opinion, gut feel, or external social media hype.
Never imply certainty or guarantee profitability merely because a setup displays a score above 80. The Edge Score is an intake filter designed to separate high-conviction institutional setups from noisy retail charts.
The four core component weights
The base score is derived from a frozen, hard-coded algebraic configuration (BASE_SCORE_CONFIG) totaling a maximum of 100 points:
| COMPONENT | MAX POINTS | EVALUATION INPUTS |
|---|---|---|
| CATALYST | 40 | Form 4 cluster transaction dollar value, Form 8-K material event recency, Olyth heat and velocity rank. |
| STRUCTURE | 30 | Relative volume (RVOL), multi-day trend alignment (SMA 20/50/200), RSI(14) support, relative strength score. |
| EXECUTION | 15 | 20-day average daily dollar volume, confirmed bid-ask spread percentage via exchange feeds. |
| RISK / REWARD | 15 | Planned R multiple expansion beyond 2.5R, clearance from major overhead technical resistance. |
| TRAP PENALTIES | DEDUCTION | Deducts points for structural warnings (e.g. secondary offering shelf, high historical volatility rank). |
Zero LLM inference and the adaptive learning layer
Large Language Models are probabilistic and prone to hallucination. Day Trade Edge enforces a strict architectural rule: zero LLM inference is used to score setups or pick tickers.
Every score is calculated deterministically via algebraic formulas directly bound to raw SEC EDGAR filings and exchange tape data. Running the identical inputs through the scoring engine will produce the exact same score every time.
To incorporate post-market learnings without corrupting base formulas, the platform applies an empirical Adaptive Adjustment layer. This layer dynamically adjusts component weights based on verified 30-day historical outcome cohorts. All adjustments are bounded by strict mathematical caps (MAX_TOTAL_ADAPTIVE_ADJUSTMENT) and require statistically significant sample sizes, ensuring the model never overfits to short-term noise.
Frozen vs Changeable Score State
| SCORE FIELD | STATE | IMMUTABILITY RULE |
|---|---|---|
| Base Score | FROZEN | Calculated at generation from raw data; locked permanently upon publication. |
| Adaptive Adjustment | FROZEN | Snapshot of active rules at publication timestamp; frozen for full auditability. |
| Composite Edge Score (0–100) | FROZEN | Locked permanently upon card publish. Never re-scored post-market. |
What This Page Does Not Cover
Intake filters and elimination gates preceding setup scoring.
Trade price geometry, invalidation stops, and the planned-R floor.
Card status vocabulary and execution state transitions.
Post-market tape post-mortem execution evaluation.
DISCLAIMER: Day Trade Edge is an automated quantitative research and analytical software tool. It is not a registered broker-dealer or investment adviser. Method descriptions outline the operational algorithms applied to published cards. Past performance and historical ledger prints do not guarantee future returns.