Join Us as We Backtest, Analyze, and Innovate Using Dr. Ken Long’s Trading Systems

Are you looking to refine your trading skills and deepen your understanding of systematic trading? The Owl Bundle User Group (OBUG) is a community of dedicated traders focused on analyzing and backtesting trading systems based on the teachings of Dr. Ken Long. Our weekly meetings provide a collaborative environment where members actively backtest, review, and optimize strategies that Dr. Ken Long developed, adding new layers of insight to these methods.

In our 3rd quarter 2024 meetings, we focused on getting a deeper understanding on the trading edges of Dr Ken Long’s systems through quantitative backtesting using EdgeRater and Thinkorswim strategy backtester. If you’re passionate about trading and eager to explore Dr. Long’s work further, OBUG is a place for you. Here’s a summary of what we’ve been up to lately and how you can get involved.

Deep Dives into Dr. Ken Long’s Strategies and Templates

Each week, we start by revisiting Dr. Long’s foundational ideas, such as the RL30, RL10 Slope Z-Scores, and the Swing Systems Template, and then explore how these concepts can be adapted and expanded upon. Our goal is to create a comprehensive understanding of his techniques and to discover new trading edges that complement his teachings. By integrating our backtesting results and live market insights, we seek to fine-tune these strategies to meet the evolving dynamics of the market.

Highlights from Our Weekly Meetings: 3Q2024

Meeting 73 - July 28, 2024

We introduced Version 2.8 of the Swing Systems template, which added market segment rotations based on RL30 Slope Z-Scores. This helps us understand where market money is moving. A new "Symbol SQN" momentum indicator was also introduced to identify strong movers in the market. We discussed future studies, focusing on enhancing the template by examining the relationship between various RL slope Z-Scores, as well as testing different exit strategies.

Meeting 74 - August 4, 2024

This session featured a comprehensive analysis of how RL10, RL30, and RL90 Slope Z-Scores can be used to gauge bullish, bearish, or neutral conditions. Our backtest results revealed how RL Slope Z-Scores provide early indications of market transitions, enabling us to anticipate shifts before they become apparent in price movements.

Meeting 75 - August 11, 2024

We focused on refining exit strategies using Keltner Channels, comparing the performance of Keltner Profit Target vs. using both profit targets and stops. We also began using Ken’s Critical States Template to better identify price levels where the market is likely to change state, and we discussed the use of systematic exits to achieve better risk-adjusted results.

Meeting 76 - August 18, 2024

This meeting marked the introduction of Version 2.9 of the Swing Systems template, which included NDX monitoring to align trades with broader market trends. We began forward testing on select Dow30 stocks and AblewayTech ETFs, and discussed various Opening Range (OR) breakout strategies on SPY. Through backtesting on Thinkorswim, we found the OR10 on a 10-minute timeframe yielded the most promising results.

Meeting 77 - August 25, 2024

With a new focus on the Universal Entry Strategy with NDX filters, we examined how extreme NDX readings affect the performance of DIA, XLE, and EWZ. Our backtests highlighted that NDX 90-100 conditions provided the strongest trading edge, especially for longer holding periods. This study has set the stage for a deeper understanding of how to align our trades with overall market sentiment.

Meeting 78 - September 1, 2024

We upgraded the Swing Systems to Version 3.0, incorporating Dr Ken Long’s RiskZ indicator. This tool captures market risk sentiment, providing a more nuanced view of when to rotate into defensive positions. During the session, we compared the aggressive MPRC strategies with conservative SSC systems, showing how each fares under varying market conditions.

Meeting 79 - September 8, 2024

This session focused on Monte Carlo R Multiple Analysis of our strategies, demonstrating that our strategies are robust and profitable with manageable drawdowns. We also reviewed backtests on Forex pairs to broaden our strategy’s applicability across asset classes.

Meeting 80 - September 15, 2024

Our new V3.1 template added a column filter for SSC conditions. We also explored using Symbol SQN as a market filter, which favors trending markets over choppy or sideways conditions. We concluded with an analysis of a pseudo long-short strategy using the AUDEUR/EURAUD currency pair.

Meeting 81 - September 22, 2024

During this session, we tested nine different momentum and trend reversal strategies using RL10Z, RL30Z, and RL90Z indicators. The top-performing strategies were Regression Line Cross, Mean Reversion, and Slope-Based Z-Score, each offering unique advantages depending on the market environment.

Meeting 82 - September 29, 2024

We compared multiple RL Z-Score entry strategies against the standard Swing Systems entries, using fixed duration exits. This study revealed the strength of combining RL Z-Score entries with Swing Systems, highlighting the importance of choosing the right entry and exit combinations.

Meeting 83 - October 6, 2024

We began our Backtesting Tutorial series, focusing on setting up EdgeRater to use Ken’s “Fireworks” rules from his Critical States Template. This session provided a hands-on approach to setting up and testing strategies step-by-step, with the goal of equipping members to run their own backtests and contribute insights.

Why Join the Owl Bundle User Group?

Our meetings aren’t just about learning new techniques—they’re about applying those techniques to real-world trading scenarios and sharing the results with a supportive community of traders. By leveraging Dr. Ken Long’s methodologies and templates, our members are able to gain deeper insights, discover new edges towards improving their trading approaches.

What Can You Expect as a Member?

• Weekly Market Scans and Strategy Discussions: Stay up-to-date with the latest market movements and identify trading opportunities using our enhanced Swing Systems templates.

• Backtest Studies and Analysis: See how different strategies perform under various market conditions. Our backtesting studies provide a better understading on the trading edges of various indicators or systems.

• EdgeRater Tutorials and Hands-On Learning: Learn to backtest, optimize, and validate strategies step-by-step.

• Exclusive Access to High-Value Content: Get access to premium scan and backtesting templates only available to members.

• Collaborative Research and Strategy Development: Contribute your findings and ideas to help refine the templates and develop new trading edges.

Get Involved and Transform Your Trading

Whether you’re looking to solidify your understanding of Dr. Ken Long’s methodologies or want to contribute your own insights, OBUG is a great place to grow as traders. Together, we can navigate the complexities of the market to achieve greater success.

Ready to take the next step? Join our weekly meetings and be part of a community that’s passionate about systematic trading. For more information and enrollment please use this link HERE.