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.
In this article I’d like to talk about the process of finding symbols to trade each day. This can be applied to any timeframe really, because whether I’m conscious of it or not I have some reason for selecting a symbol to trade. Whether I plan to hold it for ten years or ten minutes, there was some thought process I went through to decide on that symbol.
Volatility is actually one of the trader’s best friends, because it’s a clear measure that a financial instrument is moving. And isn’t that what we want? To find things that are moving, so we can sell much higher than we bought or vice versa? If a stock isn’t moving, if it doesn’t have volatility, this can be a frustrating endeavor. By finding stocks and ETFs that have a high volatility, what we call ‘finding the mover’, we’re able to be ready for a larger move that we can capitalize on with our trading techniques and proper risk management.
