Owl Bundle User Group (OBUG) is focused on designing fully systematic trading systems 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.
In our weekly meetings, we begin with one simple but important step:
1. We scan the market to understand the environment for the week ahead.
Before we talk strategy, before we run systems, before we look at backtests,
we first assess market health, volatility, sentiment, trend strength, and risk appetite.
Using Dr Ken Long’s tools—RL30Slope Z-scores, NDX indicators, volatility filters RISKZ, Market Classification regimes, and sector rotations—we build a real-time map of:
Where money is flowing
Which sectors are strengthening or weakening
How volatility is evolving
Whether the market is trending, chopping, or transitioning
Which asset classes are under stress
This weekly scan places every strategy we run into context.
It ensures we don’t treat a mechanical system as if it exists in a vacuum. Instead, we understand exactly which environment we are walking into.
2. From Market Scans → Into Strategy Research
Once the environment is clear, we move into our latest OBUG’s study:
**Validating and refining a portfolio of non-correlated trading systems built on dr Ken Long’s Critical States Template.**
These include:
Godzilla
Fireworks
FenceSitter
Humpty Dumpty
Catfish
Over the past several months, our focus has been disciplined and methodical:
Step 1 — Identify the right symbols
Using Multi-Factor Alignment (MFA), volatility filters, and structure analysis, we discovered which stocks “fit” each strategy. This step alone dramatically increased performance and stability.
Step 2 — Standardize the entry rules
We refined the setups to match the spirit of the Critical State, while enforcing mechanical clarity.
Step 3 — Establish simple, universal exit rules
We tested protective stops, trailing stops, fixed bars, and profit stops to find the most robust and durable exit structure.
Step 4 — Run full backtests from 2010–2024
This gave us a reliable statistical foundation across bull markets, bear markets, low and high volatility cycles.
3. This Week’s Milestone: Backtesting to the Present & Time-Slice Durability Testing
In our latest OBUG session,
We extended all Critical States systems from January 2010 all the way to the present,
and then ran time-slice tests across intervals:
3 Months
6 Months
1 Year
2 Years
3 Years
The goal is not simply to see “performance.”
The goal is to understand:
When each strategy is strong
When each strategy weakens
Whether weakness is due to market regime or edge decay
What conditions cause trouble
How each strategy behaves during stress
Which systems complement each other
This is the level of insight you need if you want durable, professional-grade trading systems—not just signals.
4. Why This Matters to Traders
When we complete this phase of research, we will have clarity on:
Which systems are core holdings
Which systems are regime dependent
Which systems act as stabilizers
Which systems should remain on the shelf
How strategies behave across different volatility regimes
How to combine them into a non-correlated portfolio
Most traders struggle because they rely on a single system. OBUG is addressing that problem by building:
**A multi-system, multi-regime, non-correlated strategy portfolio analyzing backtests across 15 years and multiple market conditions.**
This is exactly how professional trading desks operate.
5. Our End Goal: A Portfolio That Produces Positive, Risk-Adjusted Returns
Everything we do—market scans, strategy refinement, backtesting, symbol alignment, regime analysis—supports this one objective:
**Create a portfolio of strategies that complement each otherand deliver smoother equity curves with reduced drawdowns.**
This is the difference between trading reactively vs. trading systematically.
6. Consider Joining OBUG
We are actively studying and developing trading systems based on Dr Ken Long’s trading methodologies & techniques.
We’re refining system rules
We’re validating symbol behavior
We're stress-testing each strategy across time slices
We’re preparing to integrate market regime models
We’re moving toward portfolio construction and allocation
If you’ve wanted a structured path to consistent, data-driven trading please consider joining OBUG: LINK