What is a add on dips strategy?

It could be both. Essentially if you are convinced about a stock and you feel that the stock is properly valued, a dip provides the opportunity to add more at lower prices.

What is 'Buy The Dips'
"Buy the dips" is a slang phrase referring to the practice of purchasing stocks following a decline in prices. After a significant dip in the price of a security or stock index, investors should increase positions or purchase different stocks to capitalize on what is seen as an eventual upswing.


Read more: Buy The Dips Definition | Investopedia https://www.investopedia.com/terms/b/buy-the-dips.asp#ixzz4DnHmYXX4

 

The purchase price of the stock is really an irrelevant concept. Whether you bought it at Rs. x or Rs. y has no bearing on how the stock will perform in the future. This is called "price anchoring". You are basing your buy and sell decisions on the irrelevant factor of what your purchase price is.

Anchoring is the use of irrelevant information as a reference for evaluating or estimating some unknown value or information. When anchoring, people base decisions or estimates on events or values known to them, even though these facts may have no bearing on the actual event or value.

Read more: Anchoring Definition | Investopedia https://www.investopedia.com/terms/a/anchoring.asp#ixzz4DnMxgiXp

 

If there is a lot of upside to come the investor should obviously add more irrespective of what the original purchase price is.