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: