Most dip-buying strategies fail for the same reasons: they buy too early, exit too late, and overtrade in chop.
We built a TradingView strategy that tries to solve all three. It's called Dump Reversal Peak Trail v2 (DRPT), and it's free and open-source.
How it works
The strategy has 4 stages:
1. Dump detection — scans for a single-bar price drop that breaks the N-day low. Not just any red candle — a real capitulation event.
2. Confirmation — does NOT buy at the bottom. Waits for the first green close that passes a minimum rebound filter and a flatness filter. This is what prevents catching falling knives.
3. Peak trailing exit — once in a position, tracks the highest close since entry. When price retraces X% from the peak, it exits. Small bounce = quick exit. Big reversal = rides it longer.
4. Cooldown — built-in pause after each exit to prevent re-entry in choppy conditions.
Why non-repainting matters
A lot of TradingView strategies use indicators that recalculate past bars. The backtest looks amazing, but live results don't match because signals that appeared in hindsight never existed in real-time.
DRPT v2 uses only standard OHLC values and barstate.isconfirmed checks. We verified it by running live alongside the backtest on 1-minute charts — signals match.
Settings that matter
Before you judge the backtest results, change these defaults in Strategy Properties:
- Commission: set to 0.1% (Bybit taker fee both sides)
- Slippage: set to 10-20 ticks
- Use STANDARD OHLC candles (not Heikin Ashi)
Without these changes, any strategy looks 3-5x better than reality.
Best results on 5m-15m BTCUSDT/ETHUSDT perpetual futures.
Try it
The strategy is free on TradingView — search "Dump Reversal Peak Trail v2" in community scripts, or use this direct link:
https://www.tradingview.com/script/LBuOCi9s-Dump-Reversal-Peak-Trail-v2/
If you want to automate execution (TradingView alerts to actual exchange orders), we built GeekTrade for exactly this — it connects TradingView webhooks to Bybit with risk controls. Free tier available.
https://geektrade.online?utm_source=publish0x&utm_medium=content&utm_content=drpt-v2
Questions welcome — what dip-buying approaches have worked for you?
