Create An Algo To Buy The Dip In Bitcoin

Buying the dip is market strategy that has long been used in stocks and crypto traders have picked up on this strategy.

The logic behind buying the dip is more than just “Hey, I can get in now at a better price than I could have an hour ago.”. Buying the dip is a classic mean reversion strategy. Prices tend to revert back to the mean or their average price for the day.

It’s difficult to time when to buy a dip however and frustrating to watch a market dive and rebound before you can execute your buy order. Automating this order entry can help capture this opportunity.

In the image above, you’ll see a complete algo which was created in TT Crypto. This simple algo seeks to buy bitcoin when the price of bitcoin has fallen below a fast moving average but remains above a slow moving average in what I refer to as the “DipZone’. If bitcoin is in the DipZone and a large buy order is executed in the market, the algo will enter a buy order at the last traded price in an effort to buy this dip in price.

You can see more algos like this in my twitter stream: @patrickrooney and in the TT Crypto Telegram group.

You may also read about TT Crypto and sign up for an account on our webpage.