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prolog

Preparation - Before Quantitative Investment

001 What is quantitative investing?
- Quantitative investing, what is it?
002 Why Quantitative Investing?
- First, it's easy to learn.
- Second, it's cost-effective.
- Third, the strategy can be verified.
- Fourth, it is less influenced by psychology.
003 Investment Sentiment
- 1.
Pre-investment bias
- 2.
Post-investment bias
[Investment Story] Manager Kim Learns Why He's Been Ruining His Investments
004 The Goal of Quantitative Investment
- First, limit MDD to 20% or less.
- Second, make a satisfactory profit
[Investment Story] Calculate Your FIRE Funding Needs Using the Paradise Calculator
005 Software for Quantitative Investment
- 1.
Find investment ideas
- 2.
Establishing an investment strategy
- 3.
Verification phase (backtesting)
- 4.
Find a stock

First Yard - Minimizing Losses through Asset Allocation

006 3 Ways to Make Money Through Investing
- 1.
Asset allocation
- 2.
Market timing
- 3.
Stock selection
- The goal of this book
007 Why do we do asset allocation?
- 1. To reduce MDD to less than 20%
- 2.
We cannot predict the future.
- 3.
Safe even when the investment environment deteriorates and an economic crisis strikes.
[Investment Story] Asset allocation comes before stock selection?
008 The First Key to Asset Allocation: Buying Assets with Long-Term Uptrends
009 The Second Key to Asset Allocation: Investing in Asset Classes with Low Correlation
- The economy also has four seasons.
Asset Allocation Strategy 1: Permanent Portfolio
[Muttagi] Follow the Asset Allocation Rebalancing
010 The Third Key to Asset Allocation: Maintaining Similar Volatility Across Asset Classes
011 Korean All Weather
Asset Allocation Strategy 2: Korean All-Weather
012 Creating a Korean-style all-weather retirement pension
Creating a Korean-style All-Weather Plan from Your Retirement Pension Account
- Domestic listed ETFs vs.
Comparison of US-listed ETFs
Asset Allocation Strategy 3: All-Season Portfolio

Second Yard - Market Timing

013 What is market timing?
- 1.
Market timing using price
- 2.
Market timing using seasonality
- 3.
Market timing using economic indicators
- 4.
Market Timing Using Valuation
- 5.
Other strategies
014 What is your Halloween strategy?
[Investment Story] Is the stock market heaven from November to April, and hell from May to October?
015 Halloween Strategy in the Korean and US Markets
016 Combining Korean All-Weather and Halloween Strategies
017 Why Halloween Strategies Work

Third Yard - Korean Stock Selection

018 Which stocks should I buy?
[Investment Story] Value stocks, growth stocks, growth value stocks... What's the difference, and how do you tell them apart?
019 Basic Accounting - Income Statement
- 1.
take
- 2.
Gross profit
- 3.
operating profit
- 4.
net profit
020 Basic Accounting - Financial Statements
021 Basic Accounting - Cash Flow Statement
022 Drawing the Big Picture of Individual Stock Quant Investment
[Muttagi] Finding an indicator that is more profitable than the stock index (backtesting)
023 The Magic of Smallness
- 1.
In Korea, small-cap stocks have much higher returns than large-cap stocks.
- 2.
Most quantitative indicators show higher excess returns in small-cap stocks.
[Muttagi] Decile Calculation Method Using Quantus
024 Korean Value Stock Index
Finding Value Stocks with 025 PSR
Finding Value Stocks with 026 PGPR
Finding Value Stocks with 027 POR
Finding Value Stocks with 028 PER
029 There are also value stock indicators like PAR, PBR, PCR, PFCR, PLR, PRR, and shareholder return.
030 Blindly Follow Value Stock Strategy
- 1.
Total stock
[Muttagi] Blindly Follow Value Stock Strategy
- 2.
large cap stocks
- 3.
small cap stocks
031 Other Value Stock Strategies
- 1.
Kang Hwan-guk's Super Value Strategy
- 2.
Benjamin Graham's Value Strategy
- 3.
Ken Fisher Value Strategy
- 4.
Benjamin Graham + Ken Fisher Value Strategy
032 Korean Growth Stock Index
033 Finding Growth Stocks by Sales Growth Rate
034 Finding Growth Stocks by Gross Profit Growth Rate
035 Finding Growth Stocks by Operating Profit Growth Rate
036 Finding Growth Stocks by Net Income Growth Rate
037 Blindly Follow Growth Stock Strategy
[Muttagi] Blindly Follow Value Stock Strategy
- 1.
Total stock
- 2.
large cap stocks
- 3.
small cap stocks
038 Blindly Follow Growth Value Stock Strategy
- 1.
Total stock
[Muttagi] Blindly Follow Growth Value Stock Strategy
- 2.
large cap stocks
- 3.
small cap stocks
039 Korean Individual Stock Portfolio

Fourth Yard - US Stock Selection

040 Differences Between Individual Stock Quant Investing in Korea and the US
041 Small-Cap Strategy: Will It Work in the US?
[Investment Story] Can Quantitative Investing in the US Be the Same as in Korea?
042 Analysis of US Value Stock Indicators
043 Blindly Following the US Value Stock Strategy
[Muttagi] Blindly Following US Value Stock Strategy
044 Can Kang Hwan-guk's Super Value Strategy, Benjamin Graham's Strategy, and Ken Fisher's Strategy also work in the United States?
- 1.
Kang Hwan-guk's Super American Value Strategy
- 2.
Benjamin Graham's American Value Strategy
- 3.
Ken Fisher's American Value Strategy
045 Analysis of US Growth Stock Indicators
046 Blindly Following US Growth Stock Strategy
[Muttagi] Blindly Following US Growth Stock Strategy
047 Blindly Following the US Growth Value Stock Strategy
[Muttagi] Blindly Following US Growth Value Stock Strategy
048 US Stock Portfolio

Fifth Yard - Blindly Following Quant Portfolio

049 Korean All-Weather, Halloween Strategy Combining Quantitative Investment in Individual Korean and US Stocks
- Final portfolio to follow blindly
050 Quant Investing: Why Not Try This Easy Thing?
- 1.
Quantitative investing also has periods of low returns.
- 2.
There is no story
- 3.
You'll be buying small-cap stocks you've never heard of before.
- 4.
The investment process is boring
- 5.
Investing can't be this easy!
[Investment Story] Manager Kim Reaches FIRE

Quantitative investing: A world-class, comfortable investment method that generates profits in any economic environment.
Invest just 15 minutes once every three months for 15% compound interest and a maximum loss of 15%! The 15-15-15 strategy.

Author Kang Hwan-guk likens quantitative investing to a "cooking recipe."
Even people who are not good at cooking can cook according to the recipes proven by famous chefs.
The idea is that even if you don't end up with a fancy dish, you can at least make something 'edible'.
The situation for beginners in stock investing is similar.
Among the countless quantitative investment strategies available, there are already proven and excellent ones.
Among them, if you invest in a strategy similar to your own style, the probability of anyone earning a certain level of profit increases.
The practical way to invest like this is explained as 'quant investing'.
Quantitative investing eliminates the biases and sway of human emotions.
An investment method that minimizes the influence of subjective emotions and psychology by following a strategy based on numbers and data.
Plus, once you devise a strategy, you can trade less.
Anyone can profit efficiently with just a 15-minute investment once every three months.
Strategies and ideas abound, and you can backtest them yourself to verify their performance.
Therefore, for beginners, quantitative investing is a surefire way to generate profits based on probability, and serves as a starting point for understanding stock investing in general.
By effectively utilizing the advantages of quants, you can achieve highly efficient and cost-effective investment with minimal investment time.
The unique appeal of quantitative investing is that it allows investors to limit losses even when market conditions suddenly become difficult, allowing them to invest with peace of mind.

"Follow Quant Investment Blindly" is structured around the concept of creating your own strategy, limiting investment time to 15 minutes per three months, annual compound interest rate to 15%, and maximum loss to 15%.
It is called the 15-15-15 strategy.
Whether this strategy is actually feasible will have to be tested, but if it's a quantitative strategy, it's probabilistically possible.
Investing becomes much easier if you create rules based on data.
Only those who understand the value and secrets of these investment methods can truly achieve financial freedom.
If you can effectively incorporate market-accepting investment ideas into quantitative investing, anyone can achieve the FIRE life they so desperately desire.
This book is where your journey begins.


A collaboration of the proven core structure of the Just Follow series and the clear explanations of author Kang Hwan-guk!
Even those with limited time and those struggling with investing can unite through quantitative investing!

The characteristic of the Just Follow series is that, as the title of the book suggests, you can just follow it 'just'.
It is designed so that if you follow it, you will learn the method without even realizing it.
Those who fear quantitative investing, those who are swayed by economic conditions, those seeking psychological stability, and those with distinct investment preferences will find it very helpful to read this book and apply its concepts step by step to real-world situations.
We've created a variety of sections so that even those who are unfamiliar with investing and quants can follow along step by step with ease.


Investment Story - This story is about how Kim Joo-sik, who had failed in stock investment, met Manager Kang Quant and learned and practiced quantitative investment.

Just a moment - to supplement information that was not fully explained in the text or to add explanations to questions.

Know it - Stock-related terms and basic information explained in an easy-to-understand manner.

Just follow along - From the backtesting process to strategy creation, detailed illustrations and explanations make it easy for anyone to follow.

This book details how to limit your maximum loss to 15% to 20%, how to create investment strategies using various software, and how to verify them through backtesting.
In particular, the performance and ratio of strategies that can generate continuous and stable investment returns, including the Korean-style All Weather, which can be utilized for retirement pensions, are disclosed so that they can be applied immediately.
It also provides information on which indicators can be used to find high-yield stocks in the Korean and US markets.
In the "Just Follow" section, we introduce methods for finding value stocks, growth stocks, and value-growth stocks, as well as small-cap stocks with high returns.
It includes a wealth of photos and detailed explanations, so you can easily follow along step by step.
All you have to do is work with the author step by step to understand how to interpret backtesting results and what points to accurately understand.
If you do this, you will reach a point where you will become accustomed to quantitative investing without even realizing it.
From then on, you might spend your nights devising great strategies to give your quantitative investments wings.


Master the 6 Steps to Quantitative Investment, Available Only in "Quantitative Investment: Just Follow"

Korea's first comprehensive guide to quantitative investing, covering everything from concepts to investment ideas, strategy formulation, and portfolio construction! There's no better introduction to quantitative investing than this!

STEP1.
Understanding Quantitative Investment Concepts: Learn the concepts and benefits of quantitative investing, the various biases investors often fall into, the goals of quantitative investing, and backtesting methods.
The more beginners and those who struggle with investing, the more they learn why they should start investing quantitatively.


STEP2.
Mastering the Basics of Asset Allocation (Feat.
Loss minimization): When the stock market fails and falls or an unexpected event such as a 'black swan' occurs, investors get scared and run away.
What if there was a strategy that could limit the maximum loss at this time? Learn how quantitative strategies can limit the maximum loss.
By understanding the characteristics and correlations of various asset classes, you can master the basics of asset allocation.
Moreover, the 'Korean All-Weather' quantitative strategy is revealed for the first time in this book.


STEP3.
Mastering Market Timing: Learn what market timing is and how it can actually be validated with data.
We will examine the Halloween strategy, which is already widely known worldwide, and examine its verification through the combination of the Korean All-Weather and Halloween strategies.


STEP4.
Korean Stock Selection: Learn the criteria for identifying and distinguishing stocks by their characteristics.
Understand basic accounting concepts through easy-to-understand diagrams, and use them to develop winning strategies for small-cap stocks, value stocks, and growth stocks.


STEP5.
US Stock Selection: Understand the differences between the Korean and US markets and explore quantitative strategies that work in the US market.
Learn how to select individual U.S. stocks, follow and test strategies like Kang Hwan-guk's Super Value Strategy, Benjamin Graham's Strategy, and Ken Fisher's Strategy, and develop your own U.S. stock quant strategy.


STEP6.
Complete your quant portfolio by blindly following along: You can create your own blindly following quant portfolio that will help you become a FIRE tribe member like Kang Hwan-guk.