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WINNERSTOCK

Dark Pool / Institutional Short Sale Monitoring System User Manual (Professional Edition)

This system is designed to track Institutional Dark Pool Trading and Institutional Short Sale Volume in the US equity market. It uses multi-dimensional metrics (Buy Ratio / DP Index / Inflow / Outflow) to identify potential Institutional Directional Bias, Accumulation Behavior, Risk Points, and Reversal Signals.

It is suitable for active traders, institutional researchers, and analysts focusing on options and price structure.
 

 

I. System Core Features

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✔ 1. Single Symbol Query (Get Started)

 

Enter a stock ticker (default is SPY). The system retrieves Dark Pool transaction statistics for the most recent 3M / 6M / 1Y time window and displays the following data points:

Data PointDescription

DateTrading Date

BoughtInstitutional Buying Volume

SoldInstitutional Selling Volume

Buy RatioBuy-to-Sell Ratio

DP IndexDark Pool Index

Total VolumeTotal Traded Volume

Inflow / OutflowDirectional Bias Tag

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✔ 2. Volume Filter (Automatic Low-Volume Stock Exclusion)

 

The system applies a preset filtering logic:

 

Data is only included in statistics and rankings if: Total Volume ≥ 2,000,000 shares

  • This effectively prevents the Buy Ratio from being distorted by low-liquidity stocks.

 

✔ 3. Market-Wide Scan (Automated Top 10 List Generation)

 

The system automatically scans Dark Pool data for the entire market (e.g.,SP500 stocks) daily to generate the following ranked lists:

  • Inflow—Buy Ratio TOP 10

  • Inflow—DP Index TOP 10

  • Outflow—Buy Ratio TOP 10

  • Outflow—DP Index TOP 10

The results are automatically cached to avoid redundant calculations.

This is ideal for observing:

  • Which stocks are under "Fierce Institutional Buying."

  • Which stocks are under "Heavy Institutional Selling."

  • Market style rotation (Growth / Value / Tech / Financials).

 

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II. Key Metric Definitions (Core Concepts)

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1. Buy Ratio (Institutional Buy-to-Sell Ratio)

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Buy RatioMeaningDirectionBias

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> Institutional Net Buying (Inflow)Higher = StrongerIndicates more proactive institutional buying.

< Institutional Net Selling (Outflow)Lower = WeakerIndicates more proactive institutional selling.

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Example:

  • Buy Ratio = 5 → Buying is 5x selling → Strong Accumulation

  • Buy Ratio = 0.3 → Selling is 3x buying → Strong Distribution

 

2. DP Index (Dark Pool Index)

 

The DP Index approximates the percentage of Dark Pool volume classified as "Buy-side" transactions.

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Intuitive Meaning:

  • Higher (80%–95%) → Dark Pool volume is mostly Buy → High probability of Institutional Accumulation.

  • Lower (< 30%) → Dark Pool volume is mostly Sell → Possible Institutional Distribution or hedging.

  • Near 50% → Neutral, balanced transactions.

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DP Index is commonly used to:

  • Identify inflection points in capital flow.

  • Capture reversal trends.

  • Determine which stocks are "Being Secretly Bought."

 

3. Inflow / Outflow (Directional Tag)

 

The directional judgment in this system is derived from the Buy Ratio.

TagConditionMeaning

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🟢 InflowBuy Ratio ≥ 1Institutional Net Buying

🔴 OutflowBuy Ratio < 1Institutional Net Selling

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Inflow often implies:

  • Active participation by institutional capital.

  • Short-term trend usually shows strength.

  • Medium-term formation of a bottom or trend continuation.

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Outflow signals may indicate:

  • Profit taking.

  • Risk hedging.

  • Capital flight leading to short-term pressure.

 

III. System Usage Recommendations (Professional Trader Perspective)

 

Here are common high-value use cases:

 

1. Find the Strongest Theme Stocks of the Day (Inflow Buy Ratio Top 10)

 

Look for:

  • Buy Ratio > 5 AND DP Index > 85%

  • These are typically the strongest institutional accumulation stocks for the day, often preceding high-volume breakouts, sharp rallies, or pre-earnings positioning.

 

2. Find Stocks Secretly Being Sold by Institutions (Outflow DP Index Top 10)

 

Look for:

  • DP Index < 30% AND Total Volume is large.

  • This can signal early distribution or institutional portfolio repositioning. If coupled with stock price decline, risk aversion is advised.

 

3. Judge Broad Market Risk (SPY / QQQ / IWM)

 

For SPY:

  • Bullish Sign: Buy Ratio > 3 and DP Index > 90% for several days → Sustained institutional net inflow, strong trend intact.

  • Bearish Sign: Buy Ratio < 0.5 and DP Index < 40% → Broad market risk rising / Institutions are retreating.

 

4. Detect Reversal Signals

 

After multiple consecutive days of Outflow, a sudden appearance of:

  • Buy Ratio > 10 AND DP Index > 90%

  • This often represents the reversal point where major institutions begin buying back shares (catching a falling knife/aggressive accumulation).

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Disclaimer: The data provided by this system is for professional reference only and does not constitute investment advice.

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