by Philip Wu

As an update to our prior article on our Thinkorswim trading user group, we will be embarking the next several weeks on “Finding the movers”. Based on feedback from our members, we will be focusing on identifying trade candidates based on the top down “Logic chain” strategy as developed by Dr Ken Long.

The “Logic Chain Strategy ” hypothesis is that Market Condition has a large influence in the direction of the trading symbol ~ 50% due to market, ~ 25% due to sector, ~ 25% due to company. We will first asses the market condition, then do a relative strength comparison of key sectors, and then select the strongest sector and corresponding strongest symbols, or select the weakest sector and the corresponding weakest symbols in that sector. We will use Dr Ken Long’s suite of statistically based filters and indicators to help identify these symbols. We will be iterating our approach each week based on our results using the combined expertise and insights of our members.

We will be “Finding the movers” all within our group’s framework:

Goals: Effectively apply learning to real-world trading scenarios

Data Driven Strategy Development

• Convert daily reports into a process for identifying tradable symbols.

• Develop and test trading setups (e.g., Channeling, Washout) with simple exits (5DD, WO, Autoframer, TS) against Market condition and RiskZ

• Backtest market %change after turning points in Risk-Z or Slope30 Stat.

• Guide participants in expanding and adjusting parameters for their use cases.

Platform Mastery Essentials

• Ensure participants understand how to navigate the platform.

• Reinforce indicator, scan, and watchlist applications

• Apply learned concepts practically and avoid information overload.

• Emphasize simplicity to avoid overwhelming with indicators

Reach out to us at ablewaytech@gmail.com if you are interested in joining our group. Even if you're not currently using the Thinkorswim platform, the insights and knowledge you'll gain from our group will be very informative towards your trading journey.

Happy Trading!