Pre-Sales VIP Questions

[Learnbot]

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.
Summary:
https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/page-23#post-89427

Helpful links for anyone interested in seeing how VIP members are using the BTD indicator to trade:

• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35088
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35087
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35117
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35171
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35819
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-39668
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-40185
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-40940
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-44869
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-47726
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-48056
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-50020

Customer's reviews:

• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35938
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-36156
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-43881
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-47162
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-47463
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-47627
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-53124

More reviews can be found here: https://usethinkscript.com/threads/buy-the-dip-indicator-for-thinkorswim.3553/post-34186

 

[VictusJogi]

@BenTen I am gonna be a VIP member soon. Been reading alot about Buy the Dip indicator. Is there any way that Wave analysis can be included in it?

 

[BenTen]

@VictusJogi Unfortunately, that would not be possible. I don't have any knowledge of "Wave analysis." Sorry about that.

 

[brian6743]

Hi, what indicator is the lowest indicator that is green/yellow/red? I can't seem to find it in my stash. Thanks.

 

[BenTen]

@brian6743 That is the Conservative Model of our Buy the Dip indicator. You can find it here: https://usethinkscript.com/threads/buy-the-dip-conservative-model.3762/

 

[Claude M]

I,all,
Is there a way to get Canadian stocks in ToS ??? (or a trick)
All I can play with is +/- 200 in ToS; and a lot of penny!
And from what I read, BTD is very good, I will go VIP.
Claude M

 

[BenTen]

@Claude M I'm not sure about that. You may have to contact ThinkorSwim and see if they can help.

See you in VIP soon

 

[Titan]

@nightowl Thank you for your honest feedback. I'm sure this will add value to those wondering about the indicator.

I believe Ben had mentioned previously that one should wait for BTD signals, when they occur in conjunction with the trend. Using trend indicator of 50 and 200 SMA. For me, in lower time frames, 2,3,5 min. futures markets. BTD arrows of any color are rare. When you might expect a signal it doesn't materialize. So, is anyone using other Trend indicators or time frames, where BTD, shows signals in line with the trend. Otherwise, I see BTD, more as a countertrend signal.

 

[BenTen]

@Titan Thanks for that. You can do what @chewie76 did for futures instrument such as /GC by adjusting the zero line to a slightly higher value such as 0.016. I hope that helps.

• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35532
• https://usethinkscript.com/threads/buy-the-dip-vip-indicator-question.3790/post-35702

 

[sparky]

So far my experience with this indicator using the aggressive version using it on 1m,5m,10m on the es is pretty good. the 1 minute and 5 min BTD usually signals a low by touching the zero line but you can expect another low in price after the initial touch of the zero line on BTD. from my experience rsi works the same way it breaches the 70 or 80 band and comes up and makes another low while making divergence in the indicator. same concept for the buy the dip indicator in those small time frames. so my conclusion is if you're trading /ES with a tight stop its best to wait for the next low in price after the initial touch of the zero line using the smaller time frames on btd to buy.

I am seeing that also, thanks

 

[sparky]

@deansafeleen Your observation is correct. Sometimes, stock can bottom when hovering near 0 and never crosses below it. Some of our members (for example, @chewie76) have shared that they slightly change the 0 value line to something like 0.016.

good info to know , thanks

 

[Veasna]

Did anyone do the backtest this BTD indicator? If not, is that easy to convert it to a strategy in TOS?

 

[BenTen]

@Veasna No, we don't have any backtesting data on it.

It would not be a good idea to hit buy and sell solely based on the signals given by our BTD indicator. Additional factors need to be considered before placing a trade (Ex: support/resistance, type of stock, current market condition, etc.).

 

[Veasna]

@Veasna No, we don't have any backtesting data on it.

It would not be a good idea to hit buy and sell solely based on the signals given by our BTD indicator. Additional factors need to be considered before placing a trade (Ex: support/resistance, type of stock, current market condition, etc.).

Thanks for your prompt reply, Ben.

O.K is there a way to do backtesting in TOS by converting it into a strategy?

I understand that it needs other factors before placing a trade.

 

[MerryDay]

@Veasna Some of the 'other factors' don't lend themselves to be scripted into a backtesting strategy.
The single largest component for reading the BTD signal is knowing the causative factor for the dip.
If a stock has dipped on a poor earnings report or an analyst downgrade, the 1st signal might not be the bottom yet.
If it is a stock w/ good fundamentals that dipped due to market conditions, I look for an immediate bounce when the market turns around.

 

[Veasna]

@Veasna
Some of the 'other factors' don't lend themselves to be scripted into a backtesting strategy.
The single largest component for reading the BTD signal is knowing the causative factor for the dip.
If a stock has dipped on a poor earnings report or an analyst downgrade, the 1st signal might not be the bottom yet.
If it is a stock w/ good fundamentals that dipped due to market conditions, I look for an immediate bounce when the market turns around.

Thanks for your inputs, MerryDay. Great points to consider, but I want to see the worst case it can get into (without the other factors).
Sure, you can use it to scan the good fundamental stocks where they have the dip, too. However, I still want to see how it performs in the worst case.

 

[MerryDay]

@Veasna I still don't see the feasibility. The history of the stock market is that it is cyclical. The temporary dips will go up except for the stocks that are down for a reason.

For instance, there have been dips on the energy stocks since the news that Russia and Saudi are starting up production again. Those will be doing the dead cat bounce for some time and would skew any backtesting results. HTH

 

[Veasna]

@Veasna
I still don't see the feasibility. The history of the stock market is that it is cyclical. The temporary dips will go up except for the stocks that are down for a reason.

For instance, there have been dips on the energy stocks since the news that Russia and Saudi are starting up production again. Those will be doing the dead cat bounce for some time and would skew any backtesting results. HTH

Again, thanks for bringing a good point, but I think it is still valid for a certain stock or sector.

 

[MerryDay]

@Veasna
On certain stocks, in certain sectors maybe.
So the BTD would be the open condition. What would you want to have as your close condition?

 

[Veasna]

@Veasna
On certain stocks, in certain sectors maybe.
So the BTD would be the open condition. What would you want to have as your close condition?

How about 1/2 ATR of a certain stock for a start?

 

[MerryDay]

@Veasna The BTD indicator shifted my investing paradigm 100%.
I started out chasing price. Then went to having an overdependence on indicators looking for the algo-type backtesting results.

BTD is simple and solid. It is perfect for alerting me to when stocks w/ good fundamentals in trending sectors present a buying opportunity.
I am still not sure that a backtest is viable. The BTD does not lend itself to algo-type definitions. But I will look at it.