Buy The Dip - Does It Work?

Bitcoin / US Dollar Perpetual Inverse Swap ContractBitMEX

Huraian

⋅ 28 Jan 2019 pukul 16.47

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

Nota Keluaran

⋅ 27 Mei 2019 pukul 17.56

Had accidentally hard coded the forward looking number.

Komen

parsavares

⋅ 15 Ogs 2020 pukul 16.47

It doesn’t work bro

shtcoinr

⋅ 16 Ogs 2020 pukul 12.14

@parsavares, F

dilace

⋅ 25 Mei 2019 pukul 19.07

nice! :)

overttherainbow

⋅ 28 Jan 2019 pukul 17.15

You're a legend mate. I love all your scripts.

shtcoinr

⋅ 28 Jan 2019 pukul 19.03

@overttherainbow, Thank you, very much appreciated!

abhiaansh80

⋅ 18 Okt 2021 pukul 05.28

@shtcoinr, very good buy signals on dips, plz add sell on rise also if you can
Thanks

shtcoinr

⋅ 20 Okt 2021 pukul 13.03

@abhiaansh80, not gonna publish it but here it is if u want to try
```
//@version=4
strategy(title="Sell The Rip", shorttitle="STFR", overlay=true)
dipness = input(title="Dipness",defval=2)
smoothness = input(title="Smoothing",defval=10,minval=0)
lookforward = input(title="Exit After This Many Bars", defval=20)

thedip = high + (atr(20) * dipness)
theripsma = sma(thedip,smoothness)

sellCondition = crossover(high,theripsma)

if (sellCondition)
strategy.entry("short", strategy.short)

strategy.close("short",when=sellCondition[lookforward])

plot(theripsma)
```

Lebih