# Introduction
Drop Trader is built for one thing: **automatically catching sharp, fast dips** caused by big sells — before they bounce.
When a large wallet dumps a token, it often causes a **sudden drop in market cap**. If the token has strong activity and volume, this dip usually recovers **within 2–5 seconds**. That’s your window.
Drop Trader watches for these moves by scanning for a **% decrease in market cap over a short time frame** — typically 4 seconds or less (you can tweak this). When the conditions are hit, it will **instantly enter the trade**, aiming to catch the bottom and ride the bounce.
Used correctly, this strategy can be extremely rewarding — but precision matters. This guide will walk you through exactly how Drop Trader works, how to set it up, and how to optimise your strategy for maximum gains. Firstly lets start with the type of [tokens](/leap-trading-sol-bot/leap-trading-bot-setup/drop-bot-strategy-explanation/token-selection.md) you want to be going for.
Below is a prime example of how it works. Within 1 candle there was a 35% dip. We bought the dip and then automatically sold when it hit our TP.
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