Quant Investing

@basumallick Sir,

This is a great thread and sincere thanks for sharing the immense knowledge.

I am trying to develop a model for myself to transition to quant from discretionary stock picks. Will you be able to share your thoughts on following pls.

1. I prefer filtering the stocks only from Nifty 50/Midcap 50/Small cap 50 indexes (with 50,30 and 20% allocation) as I want to stay within index. Stock selection (Max 10) could be based on highest Alpha. While I need to do back test, wanted to know the opinion(s) on this approach pls?

2. You did mention the exit based on stop loss, is there a simple method to arrive SL in quant world? (Instead of considering fixed SL say 10%/20% etc.)

3. Let’s say if the stock is in F&O, is that a good approach selling the OTM calls to generate some additional returns? (Asking this since there could be a sizeable margin available and can do martingale if needed)

Thanks Much.