Entering text into the input field will update the search result below

Quant Investing: Getting The Big Things Right

Aug. 04, 2017 1:27 PM ETSPY11 Comments
Paul Novell profile picture
Paul Novell

Keep it sweet and simple. That's the fit-for-publishing version of KISS. And it is critical for being successful in the long term with quant investing. The biggest mistake I see new quant investors make is over complicating things. This just leads to failure. By focusing on a few high impact factors a quant strategy can still significantly outperform while being relatively easy to maintain. In today's post I will present a KISS quant strategy has provided plenty of outperformance while being easy to maintain.

Before I dive into the KISS quant strategy let me throw some stats at you. I have a link to Portfolio123 in most of my quant posts and I am also part of their affiliate program. Of all the clicks on my blog over to P123 only 6% of people have chosen to sign up for a free trial. Of those 6% only 9% have actual signed up for a paying P123 membership. That is 0.5% of people who showed more that some passing interest in quant investing have actually committed to use the tool. Needless to sat the affiliate program has been a total bust for me. Now, this is just pure anecdotal data. I have a really small blog and P123 is not the easiest tool to use but it jives with other stats I have seen others quote about quant investing in general. A big part of the problem is people over complicate things. They try to shoot for the stars with super aggressive strategies with high failure rates. It doesn't have to be like that. By focusing on a few big things you can get 'enough' outperformance from a quant strategy to make a huge difference to your wealth.

Here is an example KISS quant strategy. We start with the S&P 500 index

This article was written by

Paul Novell profile picture
Publisher of Economic Pulse Newsletter and author of Investing For A Living Blog. Focused on developing and managing quantitative and tactical asset allocation strategies to maximize risk adjusted returns and safe withdrawal rates in retirement. http://investingforaliving.us

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.