Handbook
What DipCatcher does for each account type, and how to use it. Short, complete, no secrets given away.
What the words on DipCatcher mean. The same explanations appear behind the ⓘ next to a term.
1/6 The price falls sharply: a dip. Don't buy yet while it keeps falling.
- 1
Stars
Five levels: Strong bottom (5), Bottom confirmed (4), Dip in progress (3), No dip (2), Red flag (1). From four stars the engine fixes entry, target and stop.
- 2
Score
A number from 0 to 100: how good the dip looks as an entry right now. Higher is better. The stars come from the score and the bottom checks.
- 3
Below the 6-week high
Highest daily price of the last 30 trading days (about 6 weeks). The number shows how far the price sits below it. Not a loss, but the depth of the dip.
- 4
Below the 30-day high
Highest daily price of the last 30 days (coins trade every day). The number shows how far the price sits below it. Not a loss, but the depth of the dip.
- 5
Bottom checks
Tests whether the fall is coming to a stop, for example price action, volume and indicators. The number shows how many passed.
- 6
Entry
The price at which the engine suggests buying. It is fixed from the day the stock or coin reached four stars and does not change while the trade runs.
- 7
Target
The price at which the engine sees the dip as recovered. When it is reached you get a notice. Whether you sell or trail the stop is your call.
- 8
Stop-loss
A sell level below your buy price. If the price falls to it, you sell, so a small loss does not become a big one. At the broker it is a separate sell order you place yourself.
- 9
Fixed trade levels
Entry, target and stop are set on the day the stock or coin reaches four stars and stay the same until the trade ends, so you can rely on them.
- 10
Expected gain
Distance from entry to target in percent, before fees and taxes. A target, not a promise.
- 11
Reward/risk (R/R)
Possible gain to the target divided by possible loss to the stop. 2 means twice as much reward as risk.
- 12
Limit order
A buy order with a maximum price: it only fills at the limit or cheaper. If the price is above, the order stays open until it fills, you delete it or it expires. You never pay more than planned.
- 13
Order data
The values you enter at your broker: the security, a buy with a limit, then a stop-loss and optionally the target. DipCatcher sends no orders; you enter them in your broker app.
- 14
ISIN
The worldwide unique ID of a security, 12 characters, for example DE0005470405. With it you find exactly the right one in any broker app.
- 15
Own stop and target
You can replace the engine's levels with your own. They then drive your alerts, the morning mail and My trades. Empty means the engine's levels apply.
- 16
Buy date
The day your buy filled at the broker. It decides which levels apply to this purchase and the holding period.
- 17
Open trade
A recorded buy without a sale. It is valued at the current price until you record a sale or the stop is reached.
- 18
Closed automatically
When the price reaches your stop, DipCatcher closes the trade in your overview and sends you a message. Nothing happens at your broker: only a stop order you placed yourself acts there.
- 19
Realized and hit rate
The average of your closed trades, and how many ended in profit. Before fees and taxes.
How the score itself comes together, in outline: How we score →