Buy The Dip - Does It Work? — Strategy by shtcoinr
By shtcoinr
Performance Metrics
- Author: shtcoinr
- Symbol: BITMEX:XBTUSD
- Timeframe: 1 day
- Net P&L: +3,424.50 USD (+3.42%)
- Win Rate: 40.0%
- Profit Factor: 2.526
- Max Drawdown: 2,160.00 USD (2.05%)
- Total Trades: 5
- Sharpe Ratio: −0.006
Description
Jan 28, 2019Buying 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 FactorPIVXBTC 56.52% profitable, 1.254 Profit Factor $BINANCE:KMDBTC27.27% Profitable, 0.257 Profit Factor... yikes!$BINANCE:BTSBTC73.33% Profitable, 13.627 Profit Factor... o.OMANABTCMay 27, 2019Release NotesHad accidentally hard coded the forward looking number.