Pre-Sales Buy the dip VIP indicator question

Learnbot

Active member
I am not VIP member yet, however, thinking about subscribing to your discord and obtaining the "buy the dip" indicator. I just wanted to check something before I subscribe to VIP, would you be able to post an example of 1min chart for TSLA, Apple, ZM or whatever else stock you see fit (not penny stocks plz since I am not that educated to trade small caps yet). I wanted to see if Buy the Dip works for day trading as well as swing.

Edit: This thread has gotten very long. Added some info below for easier access to information.

Helpful links for anyone interested in seeing how VIP members are using the BTD indicator to trade:
Customer's reviews:
More reviews can be found here: https://usethinkscript.com/threads/buy-the-dip-indicator-for-thinkorswim.3553/post-34186
 
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JorgeLUC

New member
VIP
Good Morning @BenTen, I will definitely buy the VIP subscription as i totally decided with the BTD indicator. Im pretty sure it will help me on my weekly spreads option strategy.
Will try to do the payment today and i will need the Tradingview authorization (i have seen the link for that post) as im a NON US citizen and i cant use TOS
Happy to be here with all of you, happy summer¡¡¡¡ :cool:
 

Bpositive

New member
VIP
@Gellidus, I'd be happy to share some more examples. I mostly sell put options - as I said I came into this through the covered call angle and selling put options has the same advantages of covered calls without tying up the capital having it available for other nice intraday or trade ideas, When I sell puts, I go by the mantra that I would not mind owning those particular shares - with the put discount. I also sell a few naked calls - almost always in combination of a credit straddle or strangle (I did a god number on BA although the IV there is lower). I actually got into this due to NKLA earlier in the year and made huge profits due to the insanely high put premiums (they had ~300% IV at some points) even when NKLA dropped. The NKLA party was over when their warrants expired and the put premiums dropped and the risk/reward was not there anymore.

The advantage of selling puts on dips with strike prices at support levels is that even if you are wrong and the stock still goes down it often bounces or at least hangs around the support level and you still end up making the max profit. In some cases it goes through support and you might still break-even or slight loss. However in that case future put options will be all the more expensive and I then roll forward to the next week/period for even more jiucy premiums. A swing trade doesn't always work out directly in a week but often the following few weeks. Basically if you enter at very low RSI/Bollinger levels with BTD and at support you move the probability in your favor. By selling out of the money puts (I sometimes also sell ITM puts for extra protection) you further move the probability to your side. Going by protection over max profits has worked well.

To your questions:
1) Are you selling naked puts once the indicator of the BTD appear? Sort of but not always. I have given the explanations with the images on reasonings for trade entry.
2) What is the ImpVolatility indicator with RSI are you using? Can share the link? It is not an indicator. I ran out of room on the TOS GUI. No need for the volatility to take up an extra row by itself so I plotted it on top of RSI. It got crowded when on top of other rows like MACD...I mainly enter on price action but do keep an eye on volatility. I have entered some trades when IV spiked (especially when selling credit straddles and strangles) since when selling options premium IV outweighs smaller price swings quickly (there are a number of good Youtube videos on that effect).
3) How do you scan for optional stocks with high Volatility? Yes good question. I'll paste my TOS scan for that. I am then sorting out by stocks that are near support and also have weekly options (I haven't found a parameter to search for weekly options) since that allows for a lot more possibilities and more deterministic outcome.

Also, for every trade I have a live Excel spreadsheet that gets the feed from TOS with the underlying price and all relevant options parameters and greeks. This is basically a must when watching call/put spreads, straddles and strangles and to decide when to close early. It's also nice to see profits rise in real-time due to time-decay. I am also tracking the cost basis of the combined trade. Sometimes a trade sequence stretches for weeks when I keep selling repeated puts or calls and each premium goes against the cost basis until finally the put option expires worthless or the covered call gets called - typically for a profit of the whole sequence. The nice things with covered calls/puts is that if the stock goes down I'll keep lowering the cost basis on a weekly basis with new premiums until you almost force a profit.

Enough of the background, I have picked out another example - this time of GOLD (it had ~40% IV in November when I traded it - so not super high but at the end of November with everything rallying I frankly was running a bit short on good trade ideas).
I'll show two charts: #1 shows the longer support of GOLD from 5/28 at ~22.50 (nearest strike price option). With that info in mind I watched as the RSI dropped. I often start scanning for RSI<40 on TOS to see which stocks are becoming possible candidates. As said at the end of Nov with a full rally going on there weren't many candidates but GOLD was one of them.
Trade entry: I saw GOLD show up on my daily RSI scan for a few days and was looking for a good entry. BTD had already flashed multiple buy signals and BTD_percentile was negative waiting for a pop but I was waiting for RSI to definitely be below 30 but show some signs of stabilizing. On 11/24 that happened and I used the drop in the last trading hour for entry. Intraday RSI<30, BTD around 0 and BTD_percentile again negative and waiting for a pop up. I'll paste the trade timestamps below.
11/24/2020 15:44:29 (-3h)Sold 1 GOLD Dec 4 2020 22.5 Put @ 0.44
43.34​
11/24/2020 15:41:39 (-3h)Sold 1 GOLD Dec 4 2020 22.5 Put @ 0.42
41.34​
11/24/2020 15:41:11 (-3h)Sold 1 GOLD Dec 4 2020 22.5 Put @ 0.41
40.34​
12/07/2020 00:00:01 (-3h) REMOVAL OF OPTION DUE TO EXPIRATION (0GOLD.X400022500)
0.00​

Outcome: The GOLD puts nicely expired on 12/4 and I could keep the full premium. Note, we are not talking about huge amounts here but I mostly go by steady small amounts and those add up very nicely to a big amount in the end. GOLD has since then been bumping around $23 as shown on the chart and maybe there's another entry again but RSI is higher now. If BTD flashes another buy signal I might look into it.

rzSslLz.png


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High IV stock scan (I was originally looking for individual options in this scan - it might be time to take out the options specific parameters and search by the stock only):
vV6h1No.png
Hi PJK... Could you please tell me how to get data feed from TOS into Excel? Thanks
 

Mattyb740

Member
You would never smooth out the TDFI. You use threshold settings.
One of the many things that I like about this indicator, is that a quick view of the historical chart tells me whether an equity works well with this indicator and where I need to set my thresholds.

This is not the common range-bound oscillator that we are used to. There is no overbought or oversold. This indicator provides insight into the direction of a trend and the strength of a trend. It will skip many great runs. Because they were high risk. Risk is determined by where you set your threshold setting.







I use the Buy The Dip Indicator. When I have a dip, I wait and look for the TDFI to signal that the Bullish Trend has begun.
I set my thresholds based on what has triggered historically.

It goes without saying, never trade an indicator in isolation. Support & Resistance and moving averages work nicely with this indicator across all timeframes.

Miscellaneous Observations:
  • When scalping look to lower the threshold to enter a trade and raise the threshold to exit.
  • If my other indicators are positive, I will enter a trade before .06.
  • The TDFI, for many equities and timeframes, traditionally indicates a very strong trend cannot be maintained. Use caution if TDFI has been over .9 for more than 3 bars, it could be getting ready for a significant drop or there might still be some profit to be had. What you do depends on your risk calculations.
There are no exact threshold numbers whether you are day-trading or swinging. Look at the historical plot: for that equity and for that timeframe to understand what numbers will work well.
The buy the dip indicator in vip does not repaint correct ?
 

Mattyb740

Member
Do you HAVE to buy vip for the whole year at once or can you have re-occurring payments month-to-month that can be set up with PayPal or another service that can do automatic payments. (that is preferred for me right now as I can’t commit that much to something all at once right now)
But I have been wanting to join vip and hope that there is some kind of wiggle room to do this. Thanks
 

MerryDay

Administrative
Staff member
Staff
VIP
Lifetime
Do you HAVE to buy vip for the whole year at once or can you have re-occurring payments month-to-month that can be set up with PayPal or another service that can do automatic payments. (that is preferred for me right now as I can’t commit that much to something all at once right now)
But I have been wanting to join vip and hope that there is some kind of wiggle room to do this. Thanks
Membership provides you with:
  • Buy The Dip Indicator (what's this?) 🔥
  • Take Profit Indicator (what's this?) 🎯
  • Advanced Market Moves 2.0 (what's this?)
  • Volatility Trading Range Indicator
  • Private VIP Forums
  • Private VIP Add-Ons & Resources
  • Private Discord Chatroom with Trade Alerts
  • Active Community of 3000+ VIP Members
Sorry. You won't find any ThinkScript Indicators available for purchase with a monthly payment plan on the Internet. There isn't anyway to make that work.
 

Mattyb740

Member
Membership provides you with:
  • Buy The Dip Indicator (what's this?) 🔥
  • Take Profit Indicator (what's this?) 🎯
  • Advanced Market Moves 2.0 (what's this?)
  • Volatility Trading Range Indicator
  • Private VIP Forums
  • Private VIP Add-Ons & Resources
  • Private Discord Chatroom with Trade Alerts
  • Active Community of 3000+ VIP Members
Sorry. You won't find any ThinkScript Indicators available for purchase with a monthly payment plan on the Internet. There isn't anyway to make that work.
I understand. I will join and can’t wait for that to happen
Thank you
 

Trader_Rich

Member
VIP
Has anyone tried BTD on 10 tick Range charts or 1000tick volume charts for futures such as CL or ES. If so, could you post a screenshot of a recent day of how BTD interacts on those charts
 

MerryDay

Administrative
Staff member
Staff
VIP
Lifetime
Has anyone tried BTD on 10 tick Range charts or 1000tick volume charts for futures such as CL or ES. If so, could you post a screenshot of a recent day of how BTD interacts on those charts
Here ya go:
8g8pEXG.png

Here is a /ES range chart with the BTD signals.
Reminder: Buy The Dip ONLY provides a heads-up that an instrument has dropped significantly. There is no promise that the stock has hit bottom as you can see from the chart. It is important that you have a strategy that helps you determine an entry point.
 
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CDG

New member
VIP
Resources Needed for BTD
BTD looks wonderful - I have a systems resources question.

How demanding is the BTD indicator on a laptop? Do you recommend a dedicated desktop instead?
I'm currently using TOS Indicators Multi TF Repainting DMI Indicator - great intel, but eats resources like a hungry teenager!
 
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MerryDay

Administrative
Staff member
Staff
VIP
Lifetime
Resources Needed for BTD
BTD looks wonderful - I have a systems resources question.

How demanding is the BTD indicator on a laptop? Do you recommend a dedicated desktop instead?
I'm currently using TOS Indicators Multi TF Repainting DMI Indicator - great intel, but eats resources like a hungry teenager!
BTD puts very very minimal dent into your system resources.
 

drizzla

New member
VIP
Brand new premium member here--this may sound like a ridiculous question, so please excuse my ignorance.

I keep coming back to the same linked post about how BTD is not a buy signal, nor will it prevent you from trying to catch a falling knife (obviously). All it indicates is that a stock is dipping (significantly) and MAY have bottomed in the immediate time frame.

So I am guess I am still a bit confused what makes this BTD lauded as such as unique and powerful indicator.

I would love to hear from some more experienced users and traders here as to exactly how and why it has helped them and does things other indicators and strategies are perhaps unable to do.

Thank you!
 

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