PATENT #005 - KINETIGOR
8.6
Stock Market Alpha Detection Engine
Proprietary Signal Scoring for Trading Decisions
Scored by: STARS+ Multi-Model Consensus
What It Is
A prediction engine that applies proprietary scarcity scoring to stock market signals, outputting simple BUY / SELL / HOLD decisions with risk/return analysis.
→ 7 information signals decomposed into a single alpha score
→ 5 friction/cost signals measure execution difficulty
→ Half-Kelly position sizing (mathematically optimal bet sizing)
No existing trading tool unifies information theory + execution cost in one score.
Scoring (Preliminary)
| Novelty | 9/10 |
| Non-Obviousness | 8/10 |
| Utility | 9/10 |
| Breadth | 9/10 |
| Defensibility | 8/10 |
Signal Inputs (Information Layer)
→ Earnings surprise — % beat/miss vs consensus
→ Volume anomaly — ratio vs average daily volume
→ Insider activity — insider buy/sell signals + direction
→ Sentiment shift — % change in market sentiment
→ Analyst divergence — degree of disagreement among analysts
→ Options skew — put/call imbalance
→ Short interest — % of float shorted
Cost/Friction Layer
→ Market cap friction, spread cost, liquidity cost
→ Regulatory burden, signal time decay
Risk Models Integrated
→ Kelly Criterion — optimal position sizing from win probability + odds
→ Risk/Reward Ratio — upside vs downside estimation
→ 4-Factor Risk — volatility, size, liquidity, squeeze risk
→ Time Horizon — intraday / 1-2 days / 1 week / swing
Output (Simple & Actionable)
Action: STRONG_BUY / BUY / WATCH_BUY / WATCHLIST / PASS / SHORT
Confidence: HIGH / MEDIUM_HIGH / MEDIUM / LOW / NONE
Direction: BULLISH / BEARISH / SQUEEZE_POTENTIAL / NEUTRAL
Position size: % of portfolio (Half-Kelly, capped at 25%)
Risk level: LOW / MODERATE / HIGH / VERY_HIGH
Penny stock flag: auto-detected for market cap < $2B
Key Innovation
Existing tools are signal-locked:
→ TradingView shows charts, not unified alpha scores
→ Bloomberg Terminal costs $24K/yr and requires expertise
→ Robinhood gives NO signal analysis at all
NOBODY unifies information novelty + execution cost into a single tradeable score with Kelly-optimal sizing.
Validated Scenarios
→ NVDA earnings beat: S=0.23, MODERATE_ALPHA, BUILD_POSITION, BULLISH
→ GME squeeze: S=0.42, HIGH_ALPHA, STRONG_CONVICTION, SQUEEZE_RISK
→ JNJ blue chip: S=0.07, LOW_ALPHA, WATCHLIST, NEUTRAL
Model correctly separates signal from noise across all market conditions.
Business Model
→ API: $199/mo retail traders, $999/mo institutional
→ Penny stock scanner: premium tier with real-time alerts
→ Integration: broker APIs, crypto exchanges, DeFi protocols
Status
Scoring Engine Prediction API 3 Validated Scenarios Risk Models
Live Data Feed Backtesting Penny Scanner Dashboard
NOVEL
PRIOR ART CLEAR
IMPLEMENTED
LIVE API
Filing target: Q3 2026