TradeXTerminal

1. Earnings Quality & Manipulation Detection

TradeX uses Beneish M-Score logic and Accrual Divergence analysis to detect whether a company is fabricating its growth:

• DSO Tracking: The algorithm monitors the gap between Revenue growth and Accounts Receivable growth to flag potential "Channel Stuffing", where future sales are pulled into the current quarter to meet targets.
• Operating Cash Flow vs. Net Income: Persistent divergence triggers an "Earnings Quality" alert, indicating that profits are largely non-cash accounting entries.

2. Bankruptcy & Solvency Guardrails

Two primary health scores filter out "Zombie Companies":

• Altman Z-Score: A weighted algorithm that combines working capital, retained earnings, EBIT, and market value to predict the probability of a company going bankrupt within two years.
• Piotroski F-Score: A 9-point fundamental scale auditing the balance sheet's trend. TradeX flags anything below 3 as a high-risk "Value Trap" and targets a score of 7+ for "Quality Value."

3. "Smart Money" Divergence Engine

The terminal cross-references three disparate data streams to identify institutional conflict:

• Insider Flow Sentiment: Tracks cluster buying and selling from C-suite executives (CEOs and CFOs).
• Capitol Hill Correlation: Audits Senate and House trading disclosures to identify whether politicians are building positions in industries they oversee.
• Dark Pool & Short Volume: Calculates the "real" short interest by differentiating between standard exchange volume and off-exchange Dark Pool activity, identifying potential short squeeze setups before they reach mainstream coverage.

4. The "Zombie Growth" Filter

TradeX calculates WACC (Weighted Average Cost of Capital) vs. ROIC (Return on Invested Capital). If a company's ROIC falls below its WACC, it is effectively destroying value for every pound it spends. These are labelled "Zombie Growth" companies: businesses that appear to be growing but are burning through shareholder equity to survive.