---
title: "Buy the Dip Strategy"
slug: "strategies-and-features-buy-the-dip"
description: "Explore the \"Buy the Dip\" strategy, a custom trading approach that capitalizes on market dips using moving averages, RSI, and options trading. Understand the open and close conditions, earnings handling, and specific options selections to optimize trading outcomes."
tags: ["Buy the Dip", "Moving Averages", "Exponential Moving Averages", "Simple Moving Average", "Call Options", "Delta", "Earnings Trading"]
updated: 2024-07-25T18:20:48Z
published: 2024-07-25T18:20:48Z
canonical: "learn.trademachine.com/strategies-and-features-buy-the-dip"
---

> ## 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.

# Buy the Dip Strategy

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

### Overview

- Long call
- 1 leg

### Buy the Dip Strategy Settings

#### Buy the Dip Open Conditions:

- Stock crosses up through 200 Day SMA
- Stock > EMA10Days
- RSI20Days < 70

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2887%29.png)

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

- 1x **long 40 delta** call near **30 days to expiration**

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2888%29.png)

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

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

#### Buy the Dip Close Conditions:

- Gains Above 50%
- Losses Above 50%
- Options reach expiration

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2889%29.png)

#### Open next trade for 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

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