Drawdown Dip Buyer + 8% Target on UDN
Invesco DB US Dollar Index Bearish Fund — profits when the US dollar weakens against major currencies. Backtest 2021-01-04 → 2026-07-17, $10,000 starting capital, computed by the same engine that runs live DeployQuant strategies.
Year by year
| Year | dip buyer | buy & hold |
|---|---|---|
| 2021 | 0.0% | −6.9% |
| 2022 | 0.0% | −7.8% |
| 2023 | 0.0% | 4.6% |
| 2024 | 0.0% | −4.3% |
| 2025 | 0.0% | 12.1% |
| 2026 | 0.0% | −1.5% |
The rules
Wait for a 10% drawdown from the 20-day high, buy it, and take profit at +8%.
- 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.
Frequently asked questions
Did dip buyer beat buy-and-hold on UDN?
Over 2021-01-04–2026-07-17, dip buyer on UDN returned 0.0% annualized vs −1.0% for buy-and-hold — it beat buy-and-hold by 1.0% per year, with a maximum drawdown 22.7 points shallower than holding (0.0% vs 22.7%).
How many trades did it make?
0 completed round trips over 5.5 years (0 fills).
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.
Related
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.