---
title: "Bollinger Buy the Dip Strategy"
slug: "strategies-and-features-bollinger-buy-the-dip-strategy"
description: "Discover the \"Bollinger Buy the Dip\" strategy, a custom trading approach utilizing RSI, Bollinger Bands, and options trading to capitalize on market dips. Learn the open and close conditions, earnings handling, and detailed options selections for optimal trading performance."
tags: ["Bollinger Buy the Dip", "Bollinger Bands", "TradeMachine Features", "Call Options", "Market Analysis Techniques", "Earnings Trading"]
updated: 2024-07-25T15:43:38Z
published: 2024-07-25T15:43:38Z
canonical: "learn.trademachine.com/strategies-and-features-bollinger-buy-the-dip-strategy"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.trademachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bollinger Buy the Dip Strategy

This is a discussion of the "Bollinger Buy the Dip" strategy.

### Overview

- Long call diagonal
- 2 legs

### Bollinger Buy the Dip Strategy Settings

- Bollinger Buy the Dip Strategy utilizes a custom strategy which is labeled "qa_Diagonal_50-20_CS" under the custom strategy dropdown menu.

#### Bollinger Buy the Dip Open Conditions:

- RSI 14 Days below 30
- Stock price crosses down through Bollinger Bands Lower Band  

Bollinger Band Setup: SMA 20 Days band width of 2 Standard Deviations

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2872%29.png)

#### Details on Options TradeMachine is Selecting for Bollinger Buy the Dip Strategy:

- 1x **long 50 delta** call near **60 days to expiration**
- 1x **short 20 delta** call near **30 days to expiration**

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2873%29.png)

#### Earnings Handling for Bollinger Buy the Dip Strategy:

- [Never Trade Earnings](/v1/docs/earnings-and-trademachine)

#### Bollinger Buy the Dip Close Conditions:

- Options reach expiration (Close all legs with front month options)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2868%29.png)

#### Open next trade for Bollinger Buy the Dip:

- [At Normal Time](/v1/docs/what-does-the-and-open-next-trade-at-normal-time-and-re-open-immediately-mean)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2871%29.png)

## Related

- [Bollinger Bands](/bollinger-bands.md)
- [Getting Started with the Today Tab](/getting-started-today-tab.md)