Performance Disclosure & Methodology

1. The short version (read this first)
2. Publisher status & what that means for these numbers
3. What we measure & report
4. Live signal track record
5. Research lab: backtest & shadow methodology
6. Hypothetical & backtested results — required CFTC-style disclosure
7. What our numbers do not include
8. Fees, compensation & conflicts
9. Corrections & data integrity
10. Questions

The short version

Publisher status & what that means for these numbers

Stocks365, Inc. is a Delaware C-corporation that operates as a bona fide financial publisher. We publish general, impersonal market commentary — signals, research, education, and analysis — on a regular and ongoing basis to a broad audience of subscribers. We do not manage accounts, hold customer funds, execute trades, or provide individualized investment advice.

This activity falls within the publisher's exemption from investment-adviser registration recognized by the U.S. Supreme Court in Lowe v. SEC, 472 U.S. 181 (1985), and within analogous CFTC exemptions for non-account-managing commodity publications under Rule 4.14(a)(9). We are not a registered investment adviser, broker-dealer, commodity trading advisor, commodity pool operator, financial planner, or fiduciary in any jurisdiction.

Because we do not know any individual user's portfolio, capital, leverage, taxes, or risk tolerance, every performance number we publish should be read as statistics about a published research process, not as a forecast of what your account would have done or will do.

What we measure & report

Stocks365 publishes performance statistics in two distinct streams. They are kept separate on purpose.

1. Live signal track record

The signals we publish in real time on the dashboard are the only "live" performance stream. Every published signal is timestamped at the moment it is created, with its entry price, take-profit (TP), stop-loss (SL), and conviction score frozen at that moment. As price subsequently hits TP1, TP2, SL, or expires, the outcome is recorded automatically by our signal monitor — not adjustable after the fact.

2. Research lab statistics

Our internal research lab tests roughly forty discrete strategies (RSI extremes, moving-average crossovers, Bollinger reversions, volume breakouts, multi-indicator confluences, etc.) against approximately two years of daily price data across our 131-instrument universe. Backtest results are stored separately from live results and labelled accordingly on the /insights page. The same strategies also run on live data in "shadow mode" to build out-of-sample track records that we can compare against backtest expectations.

These two streams are reported separately because they answer different questions: the live track record tells you what our signal system actually did; the research lab tells you which patterns appear to have an edge across history.

Live signal track record

Live tracking began April 2026. Full per-signal history with entry, TP, SL, and outcome is available on the live performance page.

How a "win" is defined

• BUY signal: a win if price reaches the published TP1 before the SL is hit, within the signal's hold window. A loss if the SL is hit first. A break-even if the trade is closed at the entry price after TP1 was reached and trailing stop was triggered (recorded separately as "BE stop").
• SELL signal: same logic, inverted.
• Expired: if neither TP1 nor SL is reached within the signal's maximum hold window, the signal expires and is recorded with a forward return rather than a binary win/loss.

Things that affect what your account would have done — but are not in the win-rate number

• Broker spread, commission, financing/swap costs, and slippage on entry and exit;
• Whether your broker actually filled at the published price (especially on fast moves around news);
• Your position size and whether it was within your account risk tolerance;
• Whether you took every signal or filtered them by your own criteria;
• Tax treatment in your jurisdiction.

Research lab: backtest & shadow methodology

How the backtest works

• Daily OHLCV bars across roughly 131 instruments spanning stocks, forex, crypto, commodities, and indices.
• Approximately two years of history per instrument (subject to data availability).
• For each strategy, we walk forward bar-by-bar; whenever the strategy's entry condition fires we record the signal and compute forward returns at +5 and +10 days, plus the number of bars to a 1 ATR move.
• No future leakage: a signal at bar t is evaluated only against bars after t.
• Aggregate stats per strategy include sample size, win rate at 5d / 10d, average forward return, profit factor, expectancy, Sharpe ratio, max drawdown, and average bars-to-target.

Shadow mode

Each strategy also runs against live data continuously. Shadow signals are stored separately from backtest signals and from the published live signal feed. They are used to verify that a strategy's edge persists out-of-sample — and to flag strategies whose live performance materially diverges from backtest expectations.

Why we publish "Verified Edge", "Inconclusive", and "Myth Busted" badges

On /insights, each tested strategy carries a badge:

• Verified Edge: profit factor > 1.3 and sample size > 1,000.
• Inconclusive: results do not clearly distinguish from random.
• Myth Busted: profit factor < 0.9 across a meaningful sample — the strategy lost money over the test window.

These badges describe what happened in the test, not what will happen next. A "Verified Edge" badge is not a buy recommendation for the underlying strategy.

Hypothetical & backtested results — required disclosure

This disclosure applies to every backtested or shadow-mode statistic published on Stocks365, including all numbers on /insights, in education articles that cite research-lab figures, and in the strategy leaderboard. It does not apply to the live signal track record, which reflects signals that were actually published in real time and whose outcomes were resolved by automated monitoring of subsequent live prices.

What our numbers do not include

• Survivorship bias adjustment: backtests use the current 131-instrument universe; instruments that delisted before the test window are not included. This may modestly inflate aggregate stats.
• Realistic transaction costs: our backtests use closing prices without subtracting spread, commission, financing, or slippage. A trader paying typical retail forex spreads or crypto exchange fees would experience materially lower returns than the raw backtest numbers suggest.
• Position sizing: aggregate stats are computed at uniform position size per signal. Real account performance depends entirely on how the user sizes positions — something we do not see and cannot model.
• Correlation between simultaneous signals: our reported expectancy is per-signal and assumes independence. In reality, multiple signals can fire on correlated instruments simultaneously, so a portfolio of all signals would have meaningfully different risk than the per-signal stats suggest.
• Tax treatment: all returns are pre-tax. After-tax returns vary by jurisdiction, account type, and holding period.
• Compensation for live monitoring lag: the live signal monitor checks prices on a finite cadence; outcomes are recorded at the next monitor tick after a TP/SL touch, not at the exact wick.

Fees, compensation & conflicts

• Stocks365, Inc. earns revenue exclusively from flat subscription fees disclosed in advance on the pricing page. We do not receive performance fees, profit shares, or any compensation tied to user trading results.
• We do not manage user accounts, custody user funds, or execute trades on a user's behalf.
• Stocks365, Inc. and its principals do not knowingly take positions in the specific instruments named in a published signal in advance of, or contrary to, that signal. Where a principal holds a material position in an instrument that is the primary subject of a published article, that position will be disclosed in the article where practicable. (See Terms § 6B.)
• Some links to brokers, exchanges, and data providers may be affiliate links. Affiliate relationships do not influence editorial coverage or signal generation.
• We do not accept paid placement of specific instruments. Any sponsored content is clearly labelled.

Corrections & data integrity

We retain the full per-signal history (entry price, TP, SL, conviction score, outcome, timestamps) and the full research-lab signal database. If we discover that a published statistic was computed incorrectly, we issue a correction and update the affected page. Corrections to published statistics are noted with a timestamp.

Live signal outcomes are recorded by automated price monitoring at the time of the event and are not editable after the fact. Aggregate statistics are recomputed from this immutable underlying data.

Questions

If you believe a published performance number is wrong, or you want methodological detail beyond what is on this page, write to legal@stocks365.com for compliance-related questions or editorial@stocks365.com for methodology questions.

Stocks365, Inc. · 1111B S Governors Ave Ste 98984, Dover, DE 19904, USA · Last updated: April 17, 2026.