How does signal gating work (the "Safety checks" list)?

Before Quantustik publishes a BUY, the candidate runs through a sequence of independent safety checks. Each can only make the verdict more cautious — none can manufacture a BUY. On the ticker page they appear under the heading "Safety checks", and each one is tagged PASSED (didn’t block), BLOCKED (this is the check that stopped the BUY) or NOT RUN (never checked, because an earlier check had already blocked it).

Reading PASSED / BLOCKED / NOT RUN

PASSED — the check looked at the signal and did not block it. BLOCKED — this check stopped the BUY; it is the reason the verdict is WAIT rather than BUY, and it is the single most useful line on the list. NOT RUN — the check was never evaluated, because an earlier one had already blocked the signal. Once something blocks, the rest are moot, so we say so rather than implying they passed.

Each check is written as a statement that is TRUE when it passes — "No earnings report is uncomfortably close" — so a green PASSED beside it simply means the sentence holds.

The eleven checks, in the order they run

The overall market is in a friendly mood. Several independent signals agree. The strategy is not on a losing streak. This is not a near-copy of what we already hold. There is still room for another position. The stock is not expected to fall over the next month.

No earnings report is uncomfortably close. Market fear is low enough to enter safely. The market as a whole is trending upward. The reward is big enough for the risk, at a sane position size. And finally: we are confident enough to publish this at all.

Reading them top to bottom tells the story of why a signal did or didn’t survive — and the one marked BLOCKED tells you which specific objection to argue with, if you disagree.

The two hard numbers you’ll see most

Reward-to-risk must be at least 2:1 — the conservative risk-reward ratio (to the first take-profit rung, over the distance to the stop) has to be 2.0 or better, or the signal is demoted to WAIT and the trade plan stripped, however bullish the direction looks.

Hostile market conditions block new BUYs — when the broad market conditions are in their bottom, most-hostile band, the BUY is demoted to WAIT no matter how good the individual stock looks.

Frequently asked questions

Why did a stock I like show WAIT instead of BUY?

One of the safety checks blocked the BUY. The "Safety checks" list on the ticker page names the one marked BLOCKED — often the 2:1 reward-to-risk rule or a hostile market. Gating is conservative by design, so WAIT is common: BUY is meant to be rare and earned.

What does NOT RUN mean in the safety checks?

That check was never evaluated, because an earlier one had already blocked the signal. Once a BUY is blocked, running the remaining checks is pointless, so they are honestly marked NOT RUN rather than implying they passed.

Does passing every gate guarantee the trade will work?

No. It only means the setup cleared the platform’s bad-trade filters — several independent signals converged and the downside is bounded. It is not a promise of profit, and gates can only reduce bad trades, never eliminate them.

See it on a ticker

Browse all S&P 500 tickers to see this metric applied to individual companies.

Related terms

Educational research only — not investment advice.