# Knife Catcher Bot

This swing trading strategy was taken from chapter 3 in *[Short Term Trading Strategies That Work](https://moshferatu.dev/moshferatu/short-term-trading-strategies-that-work)* (2008) by Larry Connors.

The strategy is not named as such in the book, but I thought it was fitting.

## Rules

1. Wait for the market (S&P 500 Index) to drop for 3 days in a row.
2. Enter a long on the following open.
3. Exit the trade 5 days later.

## Parameters

**Down Day Streak**: The number of consecutive days the market has to close lower for a long to be entered. (Default: 3)

**Bars to Exit**: The number of bars to wait before exiting the trade. (Default: 5)

## Backtest Results

### SPY

![SPY Analysis](./backtest-results/spy_analysis.png)

![SPY Summary](./backtest-results/spy_summary.png)

### QQQ

![QQQ Analysis](./backtest-results/qqq_analysis.png)

![QQQ Summary](./backtest-results/qqq_summary.png)

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