Patent Continuation Burst Long
In plain terms
When a company files five or more patent continuations in 90 days from the same assignee, it's reinforcing protection around a successful product line. We buy the stock and hold for two to three months until the market prices in the innovation pipeline.
How it works
Continuation applications signal that the assignee is hardening protection around a successful core invention. A burst of >=5 continuations in 90 days from one assignee is a discrete signal of new-product-line commitment (legal infrastructure + attorney time + filing fees are not free).
Data dependencies
- Daily prices
Adjusted-close OHLCV for every US-listed ticker; primary price feed.
- Uspto patent applications
A data feed this strategy reads, refreshed on its normal schedule.
Expected edge
- Reported return
- untested — internal
- Tested over
- T+0 to T+90d
Untested — internal. Hall-Jaffe-Trajtenberg 2005 documents 0.5-2% annualized excess return on patent-value top decile, of which the continuation-burst signal is a leading indicator.
Example tickers where this is likely to fire
Illustrative only, the signal fires based on the live data, not a fixed list.
Related families
Markets under-react when companies are granted high-value patents (measured by 3-day stock reaction at grant). Firms with valuable recent patents outperform by 3-5%/yr.
Companies whose 12-month patent-application count hits the top decile of their own history are accelerating R&D 18-24 months ahead of the commercialization curve. Long on entry, hold 1-2 years.
Explore Patent Continuation Burst Long on alphactor.ai
See which tickers this family is currently firing on, with live signals and rankings.