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You might like my 2017 epic release: Trend Following: How to Make a Fortune in Bull, Bear and Black Swan Markets (Fifth Edition). Revised and extended with twice as much content.

27 thoughts on “Buying Dips Can Make for Tough Times

  1. Buying dips all depends on the context of how you buy them. Waiting for a break-out on the upside of a long-term chart and buying dips on shorter term charts represents good risk-reward ratio trades. ofcoaurse with good money managment

  2. “buying dips on shorter term charts represents good risk-reward ratio trades.”

    Uh huh, yep, sure. You mean like buying the nasdaq dip 10yrs ago? How did that work out? If you really believe this then you need to do some backtesting.

  3. Your a bit hostile today 🙂 In 2000 I would have been selling rallies on short term charts after the intial break-out on the long-term charts. You dont know what my defenition of short term or long term is. You don’t know my money managment tactics. You don’t know how i incorporate volatility in my account. You dont know anything about the system that i built to fit my own personality. So how can you critize what i’m saying. Yes my system is back-tested and it fits me and how i think. What your still not understanding is not everybody does it your way. All you are concerned about is how i enter. You can have random entries with good money mangment and still make money. You are putting me in the categaory of buy and hold. I am the furthest thing from that. Trust me Ken your way of trendfollowing is YOUR way. We will catch the same trends me and you but you do it your way i do it my way.

  4. Lol, Nader Im not being hostile at all. You can trade anyway you want, it doesn’t matter to me. And if you make money thats great. My only point is that buying dips and selling rallies on any time frame is not trendfollowing. And over the long run I have never seen a time frame where buying a dip gave a better risk reward ratio than selling a dip. Im talking about over a 30-50+ yr backtesting period.

  5. How can you back test my own system.

    “My only point is that buying dips and selling rallies on any time frame is not trendfollowing.”

    There you go again just concerned with my entries. Trend following is not just about entries. Many other aspects are built in the system. And all of them combined represents trendfollwing intended for me. What i am doing is soley based on trendfollwing. I am buying the dip only if i am in the profit. I am selling the ralley only if i am in the profit. I am willing to see those profits disappear. I dont care. i dont turn bearish or bullish in a matter of days. It takes time for the trend to switch. And i will probabley be ready to take the other side when my system is ready.

  6. “What i am doing is soley based on trendfollwing”

    If you are buying dips, selling rallies, buying/selling only if you have a profit, etc. then what you are doing is not solely based on trendfollowing, sorry, its just not. Sounds to me like what you are doing is half trendfollowing and half counter-trend trading.

  7. What i am trying to do is limit my downside volaitlity of the account while keeping the upside volaitlity open-ended. My worst drawdown is 7%. Mayebe down the line it will get bigger but i am doing my best to control it. Trendfollowers get a lot of shit for the volatility they experince. When i first started out, my first big cliet pulled out his money from the account because in the first three months we were down 3%, lol. Consdering what happend in the market i was very proud of that figure. He wanted to be making money right off the bat. Its very diffrent when you trade with people on your ass. I have range-bound startagies that go with the underlying major trend. Thats what i meant a while back when i told someone play it from the same side.

  8. “I have range-bound startagies”

    Range-bound strategies are where you buy at support and sell at resitance. It’s the exactly opposite of trendfollowing. So how can you say that what you are doing is solely based on trendfollowing?

  9. Hey man not even gonna bother anymore. You have a predefined meaning of what trendfollwoing should be in your head and nothing is gonna change that. Im done explaining..

  10. Ah, namecalling, the last resort for those who have their ignorance, delusion, or flat out lies exposed.

    “i will buy bottoms and sell at the top”
    “i will sell at the tops and buy back at the bottom”

    Yeah, good ol’ top and bottom picking! I suppose you think that’s trendfollowing too. In fact it sounds like you think that as long as you are sitting on a profit you can trade any old way you want and its trendfollowing.

  11. trend following is a philosophy
    the turtle style was trend catching u cant and should not miss the big-trend
    buying on dip or low with in the established long term trend is trend following
    and it does offer better risk reward trade

  12. Not true johnny. If a trendfollower wants to add to a profitable position they will only do so on a rally, not a dip! Trendfollowing means you buy when prices are rising. Prices are not rising in a dip! Do some basic research into how the great trend traders trade and do 50+yrs of backtesting on whatever dip buying strategy you want (any time frame!) and you will see.

  13. “Not true johnny. If a trendfollower wants to add to a profitable position they will only do so on a rally, not a dip.”

    For the millionth time, trendfollwoing is not just about entries. I feel sorry for you man. 🙁

  14. Also when i buy on dips and i am in the profit, the next dip i am going to buy is after a new high is made. I am actually buying at higher prices than the previous dip.

  15. ken i will give u a feel for such way of trend following take the turtle system u buy on the breakout and place a volatility stop now whats buying on dip with in the trend mean that when the price pull back u go long and place the stop as the original system = we are long only when a trend system is long
    your system should respond to your objectives and your belief thats why u shouldn’t trade our way
    for me it have better risk reward
    i have monthly limit for draw down so i can miss the big trend no problem
    trend following is a philosophy

  16. b.s. johnny, pure b.s. Nowhere in the turtle system do you add to positions on a price pull back. And you are right, trendfollowing is a philosophy. Its a philosophy where you buy strength and sell weakness. And a dip is not strength!

  17. my P&L agree with me
    simple concept are not hard to understand
    we agree on the philosophy u can implement it differently depending on your definition of a trend in a technical way
    im not gonna waste time on this but thanks for opening my eyes on trend fundamentalism

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