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Buy The Dip - Does It Work?

Buying the dip has become a meme in crypto, but does it actually work?

Using this script you can find out.
The dip is defined here as the average true range multiplied by a number of your choosing (dipness input) and subtracted from the low.
When price crosses under the dip level, a long is initiated. The long is then closed using a timestop (default value 20 bars), no fancy exits here.

A general rule for buying the dip should be to be more passive in a bull market and aggressive in a bear market.
Same goes for all counter trend trading.

Heres a few other examples of dip buying statistics using the H4 timeframe:

50% profitable, 1.692 Profit Factor
BINANCE:PIVXBTC

56.52% profitable, 1.254 Profit Factor
BINANCE:KMDBTC

27.27% Profitable, 0.257 Profit Factor... yikes!
BINANCE:BTSBTC

73.33% Profitable, 13.627 Profit Factor... o.O
BINANCE:MANABTC
Release Notes: Had accidentally hard coded the forward looking number.
Skript med en öppen källkod

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Frånsägelse av ansvar

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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