Inside the Owl Bundle User Group (OBUG) we recently ran a series of systematic studies on something many traders intuitively believe: If Market and Sector conditions align, trades should perform better. This idea sits at the heart of what Dr Ken Long calls the Logic Chain framework:Market → Sector → System → Symbol But rather than accepting this trading narrative, we decided to test it. So we designed a structured research project using Dr. Ken Long’s Swing Systems and ran extensive back tests inside EdgeRater.
At AbleWayTech.com, we’re exploring robust trading methodologies to help our community understand market dynamics. One standout method we’ve studied in our Owl Bundle User Group (OBUG) is the Godzilla strategy, based on Dr. Ken Long’s techniques. The EdgeRater tool allows us to scan and backtest the Godzilla strategy. The motivation behind Godzilla is simple: find the movers—symbols most likely to make sharp, outsized moves. While most stocks churn quietly, Godzilla is designed to isolate those rare moments of imbalance when institutions are forced to act, creating powerful short-term opportunities.
At the Owl Bundle User Group (OBUG), we apply Dr. Ken Long’s systematic trading methodology and use EdgeRater’s Multi-Factor Analysis to test strategies across large universes of symbols. What we consistently observe is a simple but powerful truth: Signal effectiveness varies significantly depending on the instrument.
In this third installment, we move from analysis → application using EdgeRater for backtesting.Specifically, we test: Does using equal-weight sector breadth (RSPT) improve trading performance versus cap-weighted XLK when used inside the Logic Chain? Using Dr Ken Long RL30Slope Zscore at Owl Bundle User Group (OBUG).
Most traders begin by asking a straightforward question: Is the market going up or down? An additional perspective that can provide deeper insight is: Is the market strength broadly supported, or is it concentrated in a smaller group of stocks?
That distinction matters. Because trading performance often depends less on the index level and more on how many stocks are actually participating.
Whether you are a seasoned trader or new to the markets, understanding market participation can significantly improve how you interpret market behavior and make decisions. This article examines a concept from Dr. Ken Long’s methodology: Using RL30Slope Z to analyze relative trend behavior and monitor potential market rotation
Inside the Owl Bundle User Group (OBUG) we recently ran a series of systematic studies on something many traders intuitively believe: If Market and Sector conditions align, trades should perform better. This idea sits at the heart of what Dr Ken Long calls the Logic Chain framework:Market → Sector → System → Symbol But rather than accepting this trading narrative, we decided to test it. So we designed a structured research project using Dr. Ken Long’s Swing Systems and ran extensive back tests inside EdgeRater.
An earnings question came up organically inside our Owl Bundle User Group (OBUG) while we were forward testing Dr. Ken Long’s Critical States system. One of our members experienced a large earnings-related gap loss (AMZN-style event). It wasn’t normal variance — it was an earnings shock. Naturally, the question followed: Should we avoid trading through earnings?
Our next system development project at the Owl Bundle User Group (OBUG) is the Logic Chain Trading System. The Logic Chain System is inspired by the work of Dr. Ken Long and is being implemented using EdgeRater for large-scale backtesting, multifactor analysis, and Monte Carlo validation. This project represents a natural evolution in how we think about markets, sectors, systems, and symbols — and how they should work together in a disciplined trading framework.
In our last OBUG meeting, we noticed some unusual behavior in the XLF sector, specifically in the slope of the RL30 Z-scores, a standard measure we use for our weekly market report. We look fo a continuation of the bull channel, with a possible consolidation period of the last dynamic up leg. A close below 29.59, a significant support level, would change our outlook.We look for continuation of the dynamic up trend.
Owl Bundle User Group (OBUG) Meeting 150 was built around a simple but powerful idea: markets move through regimes, and capital should only be deployed when the statistical odds justify it. This session wasn’t about predictions or hot takes. It was about how skilled traders decide when to engage, when to stand down, and how to size risk intelligently. OBUG trading studies are based on Dr. Ken Long’s trading process, with a strong emphasis on regime awareness, risk control, and capital discipline. To ensure rigor and transparency, all historical testing and analysis is conducted using EdgeRater, allowing us to evaluate long-horizon behavior, stress regimes, and portfolio-level interactions.
Most traders believe diversification means adding more strategies. Experienced traders eventually discover that this alone doesn’t work. You can have five profitable systems — and still suffer deep, confidence-breaking drawdowns if those systems fail at the same time. This is why, inside the Owl Bundle User Group (OBUG), we don’t start with signals or setups. We start with a harder question: When things go wrong, do my strategies fail together — or separately?
As we move into 2026, OBUG will continue to deepen its research into market structure, regime behavior, and portfolio-level system design, building on Dr Ken Long’s methodology and our ongoing EdgeRater backtest studies. We invite you to join the Owl Bundle User Group, and be part of an exciting new year of focused study, collaboration, and disciplined market research. Enrollment link: HERE.
Owl Bundle User Group (OBUG) is focused on fully systematic trading based on Dr Ken Long’s trading strategies, using EdgeRater as the engine for research, validation, and backtesting. This allows us to study trading strategies with precision, quantify edges, and develop durable trading systems that work across market conditions—not just in theory, but in practice.
Short-Term Analysis of GLD
The recent weekly dojis are seen more clearly the daily chart. The 20-period SMA has gone sideways, and price has gone from ‘walking the band’ for two months to a pullback below the support of the 20-day SMA. Volatility has decreased as well as the Bollinger bands have narrowed.
When GLD collapsed 6 percent on October 21 2025, it caught the financial media by surprise. Inside OBUG — the Owl Bundle User Group — we weren’t trying to predict the crash; we were trying to understand whether the market had warned us.Could the clues have been visible earlier — in volatility, sentiment, or price structure — using Dr. Ken Long’s regression-line analytics?
Long-Term Analysis of XLE
A dynamic, three-year bull move from 2020 to 2023 has been consolidating for the past two years. Price has formed what looks like a rectangle pattern as it digests the last up leg.
A difficult pattern to forecast, but we go with the trend. Price found support in April of this year at the bottom edge of the rectangle pattern at 74.79, and has since printed 4 up bars with higher highs and lows, showing bullishness
At AbleWayTech.com, we’re exploring robust trading methodologies to help our community understand market dynamics. One standout method we’ve studied in our Owl Bundle User Group (OBUG) is the Godzilla strategy, based on Dr. Ken Long’s techniques. The EdgeRater tool allows us to scan and backtest the Godzilla strategy. The motivation behind Godzilla is simple: find the movers—symbols most likely to make sharp, outsized moves. While most stocks churn quietly, Godzilla is designed to isolate those rare moments of imbalance when institutions are forced to act, creating powerful short-term opportunities.
In our weekly Owl Bundle User Group (OBUG) sessions we review the current market conditiona and backtest trading strategies to identify and validate edges. OBUG is where we take Dr. Ken Long’s trading indicators, stress-test them in EdgeRater, and uncover insights for active traders. Here’s a preview from this week’s meeting:
At AbleWayTech, the Owl Bundle User Group (OBUG) continues to refine its edge-driven approach by integrating Dr. Ken Long’s technical frameworks into a structured logic chain of market interpretation. In our June 2025 OBUG Meeting 119, we applied slope-based analysis across macro regimes, asset classes, and sectors to identify key inflection points and regime transitions.
