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

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

Notes de version

Had accidentally hard coded the forward looking number.

Script open-source

Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.

shtcoinr

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Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.

Script open-source

shtcoinr