Rules for buying the dip?

[almi]

Many have likely read this a while back already; for those that didnt:
For buying the dip (with ETFs such as VT), there historically was a way to profit (a bit).

But only if you can print money out of thin air when the dip happens (or borrow it from someone; but then you could also have borrowed it before already in theory).

Chronicles of fat years [2024-2027 Edition]

I just spent 2.5 hours to simulate a few scenarios about “buying the dip”, including this proposed strategy and will summarize the methods/results below. As we all know and read many times, it is overall less successful to hold money back for market timing. So if we follow this statement, there should never be the option to “give some extra” into the dip as everything is already invested (aka time in the market > timing the market). However, reality and the human psychology works often a bit d…