Trading Bot That Replicates U.S. Lawmakers’ Stock Portfolios Outperforms S&P 500 in 2025

A unique trading bot designed to emulate stock purchases made by U.S. lawmakers has achieved remarkable success in 2025, vastly outperforming the S&P 500. This innovative approach showcases the profitability of tracking Congressional trading disclosures, offering insights into how political decision-making might directly influence financial markets.

According to data from Finbold reported on October 18, the algorithm, dubbed “Congress Buys” and operated by Quiver Quantitative, has delivered an astounding year-to-date return of 35.24%, in sharp contrast to the S&P 500's 12.72% gain during the same timeframe. The strategy focuses on investing in the top 10 stocks most frequently purchased by members of Congress and their families. Since its launch in 2020, this data-driven approach has racked up a cumulative return of 484.39%, coupled with an annualized compound growth rate of 37.47%.

Understanding the Mechanism Behind the “Congress Buys” Trading Bot

The success of the “Congress Buys” strategy stems from its ability to leverage publicly disclosed Congressional stock trades as algorithmic signals. Lawmakers—both Republicans and Democrats—are required to file trading data publicly under U.S. disclosure rules, and Quiver Quantitative uses this information to determine high-frequency stock picks for its automated trading tool.

Investors following the strategy gain access to real-time updates on stock purchases initiated by legislators and their immediate family members. This has enabled investors to align their trades closely with those of Congress members, capitalizing on trends that might reflect firsthand insights from policy decisions and broader economic shifts.

Quiver Quantitative has also sparked robust discussion on X (formerly known as Twitter) by frequently uploading information on controversial trades executed by government officials. The platform highlights trades that align with market-moving legislation or policy changes, further supporting the idea that powerful decision-makers may have a unique perspective capable of influencing returns.

Calls for Regulatory Changes Amid Ethical Concerns

The unparalleled gains delivered by Congressional stock trades have led to increased scrutiny of lawmakers' financial transparency and raised ethical questions about their access to privileged information. In response, bipartisan calls for regulatory reform have emerged, aiming to curb potential conflicts of interest.

Last month, Republican Congressman Chip Roy and Democrat Congressman Seth Magaziner introduced the proposed “Restore Trust in Congress Act” to address these concerns. If passed, the legislation would require lawmakers to divest their personal stock holdings within 180 days of its enactment. This move seeks to restore public confidence and prevent legislators from benefiting financially through access to non-public information acquired during their governmental duties.

Although the bill is yet to pass through the House of Representatives, it has garnered bipartisan support, reflecting the growing controversy surrounding Congressional trading activities. The proposed regulations highlight increasing public dissatisfaction with perceptions that some lawmakers might use their positions for personal financial gain.

Broader Implications of Automated Investment Strategies

The intersection of politics and stock market performance has gained renewed attention with the success of strategy-based trading bots like “Congress Buys.” These tools not only demonstrate the financial advantages of analyzing legislator trading disclosures but also raise questions about the overall transparency and integrity of Congressional financial practices.

By automating trades based on political data, platforms like Quiver Quantitative shine a light on unintended benefits of these disclosures, forcing both investors and citizens to consider the ethical complexities around privileged information's impact on market performance. As scrutiny intensifies and legislative initiatives such as the “Restore Trust in Congress Act” gain momentum, the debate over aligning political power with financial regulations will likely take center stage, leaving long-lasting implications for U.S. investment strategies and governance practices.