Signal Picks: A Rules-Based Approach to Biotech Stock Selection

Biostock now includes Signal Picks - a scoring system that selects 5 biotech stocks, holds them for 3 trading days, and tracks every result live. Fully automated, rules-based, full transparency.

How It Works

Every stock in the IBB and XBI biotech ETFs gets a composite score from 0-100, built from four signal categories:

Technicals - Oversold conditions, proximity to key moving averages, confirmed support levels, and trend signals that identify stocks where selling may be exhausted.

Catalysts - Upcoming PDUFA dates, AdCom meetings, clinical readouts, and earnings. Closer events score higher. Companies with strong FDA track records earn a bonus.

Squeeze Potential - High short interest, elevated days-to-cover, and unusual volume. When these align, shorts are forced to buy.

Risk - Subtracts points for red flags like compliance issues, dilutive offerings, and penny stock territory.

The strategy uses a fixed stop loss, take profit, and 3-day holding period. Entry at next day’s open, exit at last day’s close.

Simple, mechanical, repeatable.

Pre-Market Signals

New picks are published before market open, giving you time to review the reasoning and decide whether to trade on them. Entry is priced at the open - what you see is what you get.

Full Transparency

Every pick comes with its reasoning. Flip any card to see which signals fired, the score breakdown, support levels, and plain-language explanations. BioStock tracks live performance alongside the historical backtest - cumulative returns, win rate, best and worst picks.

Why These Parameters?

The weights, holding period, stop loss, and take profit behind Signal Picks aren’t arbitrary - they were found through extensive backtesting across thousands of combinations using walk-forward validation.

But they’re one set of optimal parameters. The best strategy depends on what you’re optimizing for.

Higher win rate? Different weights. More aggressive returns? Different risk controls. Catalyst-only plays? Different mix entirely.

Signal Picks runs the best general-purpose strategy. Think of it as the default preset.

The full strategy engine behind Signal Picks is coming soon for subscribers - build your own strategy, backtest it, and see exactly how it performs. More on this soon.

P.S. iOS update coming later this week