Drawdown Dip Buyer + 8% Target
Wait for a 10% drawdown from the 20-day high, buy it, and take profit at +8%.
The rules
- WHEN the market opens · IF not invested AND the 20-day drawdown is worse than −10% · THEN buy with 98% of the sleeve
- WHILE invested · a managed limit order rests at entry price × 1.08
Buy-the-dip, formalized. Instead of a feeling, the entry is a measured 10% drawdown inside the trailing 20 sessions; instead of hoping, the exit is a resting +8% limit order. Between signals the sleeve sits in cash — this template is selective by construction and can wait months for its pitch.
Good for: assets that sell off hard and recover — it monetizes volatility without chasing strength.
Watch out: no stop-loss: if the dip keeps dipping, the position rides it down until the +8% target is eventually reached or the strategy is stopped; trade counts are low, so single trades dominate results.
Build it from blocks (or type it in English), backtest it on 5.5 years of minute data in seconds, tweak any parameter, then paper trade it on live data. No card, no broker needed to start.
Results on every ETF
| ETF | CAGR | buy & hold | max DD | Sharpe | trades | win rate |
|---|---|---|---|---|---|---|
| FAS | 28.5% | 22.9% | −65.3% | 0.75 | 18 | 100% |
| SOXX | 25.9% | 29.6% | −39.3% | 0.90 | 19 | 100% |
| TECL | 18.7% | 31.9% | −76.3% | 0.59 | 18 | 100% |
| QLD | 16.5% | 21.6% | −62.0% | 0.58 | 12 | 100% |
| ROM | 15.8% | 26.1% | −66.3% | 0.55 | 13 | 100% |
| SPUU | 14.8% | 22.0% | −41.4% | 0.64 | 10 | 100% |
| SSO | 13.5% | 21.5% | −41.6% | 0.60 | 9 | 100% |
| SOXL | 13.3% | 30.2% | −88.6% | 0.64 | 17 | 100% |
| TQQQ | 8.8% | 22.3% | −79.5% | 0.45 | 9 | 100% |
| IOO | 8.6% | 16.4% | −10.8% | 1.05 | 6 | 100% |
| XLF | 7.0% | 14.1% | −16.0% | 0.63 | 5 | 100% |
| EEM | 6.0% | 5.6% | −26.2% | 0.49 | 4 | 100% |
| XLK | 5.7% | 20.2% | −27.9% | 0.39 | 5 | 100% |
| QQQE | 5.6% | 9.4% | −24.9% | 0.43 | 4 | 100% |
| QQQM | 5.6% | 15.8% | −28.7% | 0.41 | 4 | 100% |
| CLSE | 5.6% | 20.1% | −16.9% | 0.51 | 2 | 100% |
| QQQ | 5.5% | 15.8% | −28.6% | 0.41 | 4 | 100% |
| VOOG | 4.3% | 14.9% | −26.8% | 0.34 | 3 | 100% |
| VOX | 4.2% | 9.2% | −41.0% | 0.33 | 3 | 100% |
| VOOV | 4.2% | 13.2% | −4.5% | 0.73 | 3 | 100% |
| XLY | 4.2% | 7.3% | −32.8% | 0.31 | 3 | 100% |
| VTV | 4.2% | 13.9% | −4.4% | 0.76 | 3 | 100% |
| IWM | 3.2% | 8.5% | −26.0% | 0.27 | 2 | 100% |
| TBF | 2.8% | 11.0% | −8.2% | 0.47 | 2 | 100% |
| VV | 2.8% | 13.9% | −22.2% | 0.28 | 2 | 100% |
| SPY | 2.7% | 14.4% | −16.0% | 0.30 | 2 | 100% |
| VOO | 2.7% | 14.3% | −15.9% | 0.30 | 2 | 100% |
| ALTY | 1.4% | 8.7% | −4.6% | 0.51 | 1 | 100% |
| XLP | 1.4% | 7.0% | −8.0% | 0.45 | 1 | 100% |
| RINF | 1.4% | 6.6% | −2.8% | 0.53 | 1 | 100% |
| KMLM | 1.1% | 6.0% | −21.9% | 0.16 | 1 | 100% |
| CTA | 0.5% | 7.2% | −13.3% | 0.13 | 1 | 100% |
| AGG | 0.0% | −0.3% | −0.0% | 0.00 | 0 | — |
| BND | 0.0% | −0.3% | −0.0% | 0.00 | 0 | — |
| IEF | 0.0% | −1.6% | −0.0% | 0.00 | 0 | — |
| IEI | 0.0% | 0.0% | −0.0% | 0.00 | 0 | — |
| IGIB | 0.0% | 0.9% | −0.0% | 0.00 | 0 | — |
| SGOV | 0.0% | 3.2% | −0.0% | 0.00 | 0 | — |
| FXE | 0.0% | −0.7% | −0.0% | 0.00 | 0 | — |
| UDN | 0.0% | −1.0% | −0.0% | 0.00 | 0 | — |
| USDU | 0.0% | 5.1% | −0.0% | 0.00 | 0 | — |
| QAI | 0.0% | 3.9% | −0.0% | 0.00 | 0 | — |
| IAU | −1.4% | 13.6% | −24.9% | -0.12 | 2 | 100% |
| SPDN | −1.4% | −9.7% | −22.8% | -0.18 | 2 | 100% |
| SH | −1.5% | −9.9% | −23.1% | -0.20 | 2 | 100% |
| TLT | −3.2% | −7.3% | −27.9% | -0.18 | 0 | — |
| UST | −3.8% | −7.3% | −31.7% | -0.21 | 0 | — |
| EEV | −8.0% | −14.5% | −77.2% | -0.07 | 9 | 100% |
| PSQ | −8.5% | −13.2% | −55.1% | -0.36 | 3 | 100% |
| VXZ | −14.6% | −13.9% | −61.1% | -0.45 | 0 | — |
| VIXM | −15.5% | −14.9% | −63.1% | -0.45 | 0 | — |
| TECS | −16.6% | −21.8% | −68.2% | -0.54 | 2 | 100% |
| SDS | −19.4% | −22.1% | −73.7% | -0.55 | 1 | 100% |
| QID | −26.6% | −28.9% | −86.6% | -0.53 | 3 | 100% |
| SQQQ | −28.9% | −30.9% | −89.7% | -0.45 | 4 | 100% |
| TMF | −29.2% | −30.7% | −86.5% | -0.62 | 0 | — |
| SOXS | −30.7% | −30.5% | −88.1% | -0.46 | 1 | 100% |
| REW | −33.1% | −33.6% | −91.2% | -0.63 | 1 | 100% |
| UVXY | −38.0% | −38.0% | −93.0% | -0.65 | 0 | — |
Frequently asked questions
What is the dip buyer strategy?
Wait for a 10% drawdown from the 20-day high, buy it, and take profit at +8%. Buy-the-dip, formalized. Instead of a feeling, the entry is a measured 10% drawdown inside the trailing 20 sessions; instead of hoping, the exit is a resting +8% limit order. Between signals the sleeve sits in cash — this template is selective by construction and can wait months for its pitch.
Does dip buyer beat buy-and-hold?
Across 59 ETFs backtested 2021-01-04–2026-07-17, it beat same-ETF buy-and-hold on 19 of 59 (32%). Median CAGR was 1.4% with a median max drawdown of 26.2%. Per-ETF results vary widely — see the table.
What counts as a 10% dip?
The engine computes the worst peak-to-trough move within the last 20 sessions; when it's deeper than −10%, the entry condition is met. Both the window and the threshold are editable parameters.
Compare with other strategies
Backtests are hypothetical, computed by DeployQuant's engine on minute-resolution consolidated US market data (2021-01-04 to 2026-07-17, $10,000 starting capital, no margin, fees and slippage not modeled) and do not guarantee future results. Nothing on this page is investment advice. Live trading involves risk of loss.