Automating buying a dip

N

nooby_mcnoob

Hello friends,

How would you automate buying a dip?

In my system, I have a choice of long/short/neutral on a given instrument. I can go "very" long or "very" short depending on strength of conviction, but at the moment, I just go long/short.

What I've done is automated entry by waiting until price falls below 25% low percentile for the last N bars and vice versa for going short.

This seems kind of dumb, but it works so far.

What other ways are there to enter a long position? How dumb is this entry method?
 
MKTrader said:
I once did quite well doing this with futures...until I didn't. One nasty little crash wiped out all my profits and a lot more.
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The dip isn't the signal by the way, sorry I wasn't clear. I just want to say "buy on pullback" to the algorithm and let it do the work until I say "nvm lol"
 
You are asking how to buy the dip without defining what the dip means?
With you current way, you would buy a dip within a range (non trending period)? That's more like buying near support isn't it?
 
I use another way to enter a long.

The set-up has to be in place first on the daily chart -
20EMA above the 50EMA, both EMA's sloping upwards

The signal -
price makes a daily bar with a daily high below the previous day's high

The entry -
buy at the breach of the lower high (as long as the set-up conditions are still in place)

This means that the long entry is only made if the pull-back has failed and price is resuming the uptrend. The entry can be made manually but much easier to set an order and go away.

If price does not breach the lower high but makes an even lower high, just drag the entry order lower for the next day. Keep doing that adjustment until one of the set-up conditions is no longer seen.
 
qlai said:
You are asking how to buy the dip without defining what the dip means?
With you current way, you would buy a dip within a range (non trending period)? That's more like buying near support isn't it?
More...

No I would just buy on a dip in an uptrend

tomorton said:
I use another way to enter a long.

The set-up has to be in place first on the daily chart -
20EMA above the 50EMA, both EMA's sloping upwards

The signal -
price makes a daily bar with a daily high below the previous day's high

The entry -
buy at the breach of the lower high (as long as the set-up conditions are still in place)

This means that the long entry is only made if the pull-back has failed and price is resuming the uptrend. The entry can be made manually but much easier to set an order and go away.

If price does not breach the lower high but makes an even lower high, just drag the entry order lower for the next day. Keep doing that adjustment until one of the set-up conditions is no longer seen.
More...

I like this type of idea
 
Ive got envelope range method, got pretty good at manually calling the entry, but stuck automated, M1 scalper so to fast for indicators, so either use S1 chart data or buy many positions as it gets deeper into the range.

No idea at all on exit strategy so EA not looking promising.
 
Define trend.
I would define swing before the dip, too small or large and losses might occur, through back testing you can find min/max range of the swing, then either use Gann or fib percentage for retracement and again back test well for proper parameters.
 
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