Since January 2025, the stock indexes have shown a very different style of dip buying.
Instead of slow, orderly pullbacks, we have seen sharp, news-driven selloffs followed by aggressive rebounds — especially in the Nasdaq futures market.
In this video, I walk through a simple observation:
What happens when the Nasdaq futures sell off sharply during a 60 minute time period of the trading session?
Using Claude Code, I quickly scripted the setup, then verified and tested it against the historical data.
The original idea was based on a 200-point drop over 60 minutes. To make the logic more adaptive, I normalized the threshold to approximately 2/3 of 1% based on a Nasdaq futures level near 30,000.
The strategy trades the full 24-hour futures session and exits at the session close. We also discuss alternative exit logic and how the results change when using a more managed approach.
One of the key comparisons in the video is the difference between simply buying and holding Nasdaq futures from December 31, 2024 versus using a more tactical dip-buying approach.
A long Nasdaq futures position during this period could have produced a large gain, but only while enduring significant drawdowns — including roughly $120,000 early in 2025 and another $80,000 drawdown early in 2026 on a single futures contract.
That is the real issue with “just buy the dip.”
The opportunity may be there, but the risk path matters.
This video is not presented as a finished trading system or a recommendation. It is an example of how to turn a market observation into testable EasyLanguage code and then evaluate whether the idea has any statistical merit.
The EasyLanguage code is available for educational purposes inside the YouTube EasyLanguage Members Area.
These are open-code, one-off trading system examples designed to help traders study market behavior, test ideas, and improve their own strategy development process.
I do not assume this setup will continue working indefinitely — but it is an interesting example of how the post-2024 market environment has rewarded aggressive dip buying after sharp intraday selloffs.
In the next update, we also discuss why lower Michigan Consumer Sentiment readings, elevated index levels, and future Federal Reserve leadership changes could create more opportunities on the short side.
Educational use only. Not trading advice.