Discover the Edge-Driven Process Behind Trading System Development Using Dr. Ken Long’s Methodologies
Welcome to the Owl Bundle User Group (OBUG) — a weekly study session where members explore Dr. Ken Long’s trading frameworks through structured backtesting studies using EdgeRater. Each session is designed to deepen our understanding of market structure, volatility regimes, and system design — all in a collaborative learning environment.
What We Covered in OBUG Meeting #117 (June 1, 2025)
At our latest session, we tackled what most traders miss: the intersection of macro structure, volatility regimes, and tactical setups. :
Market Scan Highlights — The Calm Before the Storm
We analyzed SPY’s RL30Slope Z-score, VIX/MOVE behavior, and volatility premium structures:
SPY’s momentum is stalling — a tactical pullback or volatility breakout is likely.
VIX and MOVE rising together: historic signal of hidden macro stress.
DXY stabilizing from oversold: often precedes cross-asset rotation risk.
Study Insight: While markets appear calm, our data suggests underlying pressures may be building. These are conditions worth studying for future model refinement.
Global Capital Rotation — Interpreting Flow Behavior
We mapped global flows using RL30Slope Z across ETFs:
All regional ETFs (EFA, EEM, IEV, etc.) show declining slopes → synchronized deceleration.
Bond ETFs (SHY, TLT) and safe-haven currencies (FXF, FXY) are starting to attract capital.
Interpretation: These shifts may reflect reduced institutional risk appetite — a useful signal for understanding cross-asset sentiment dynamics
Backtest Spotlight — Mapping Strategy Behavior zones
We conducted backtest heatmap studies using:
RL30Slope Z-scores to measure trend acceleration/deceleration
RISKZ indicators tied to VIX, GVZ, as potential regime filters
Observations:
SPY + VIX RiskZ combo gave positive results when RiskZ was low and rising.
GLD + GVZ RiskZ also showed strong edge
RL30Slope Z works best for mean-reversion or momentum depending on Z value and holding period.
Strategy Insights: Combining macro regime filters (RiskZ) with tactical entry signals (RL30Slope Z) potentially yields strong systematic trading setups. Further research planned.
Swing Systems V5.6 — Tactical Edge for DOW30
We reviewed which DOW30 stocks aligned with Bullish/Volatile conditions using Swing systems like:
5DD (Five-Day Down)
MPRC (Mean Price Reversion Channel)
AutoFramer
Channeling
System Insight: These Swing systems provide a framework for students to study trade behavior in different market environments — fostering rule-based thinking and robust system design
Why Join OBUG?
OBUG is a study group, not a signal service. We emphasize learning, not predicting, and focus on:
✅ Weekly informational sessions on Zoom
✅ Structured Swing & Intraday backtesting using EdgeRater and Thinkorswim
✅ Collaborative research on market behavior
✅ Explorations of Dr. Ken Long’s tactical indicators and trading templates
Ready to Elevate Your Trading?
Join a dedicated group of traders and students from Dr. Ken Long’s trading community who are committed to mastering the market with discipline, structured systems, and statistical edge. OBUG offers a supportive environment to test ideas, evaluate systems, and grow through shared learning.
Learn more and sign up at www.AbleWayTech.com