Extract from my book
‘Simplified Path to Be a Millionaire‘
Inspired by Jim Simons, King of Quants
The Spark
In the mid-2000s, I found myself consumed by the question that has haunted investors for decades: can you consistently beat the market? Every cycle of greed and fear, every collapse and recovery, seemed to expose one truth — most people cannot. But a handful of individuals, operating in silence, were doing it with breathtaking precision.
Among them, Jim Simons, the mathematician who became known as the King of Quants. His Medallion Fund is legendary, delivering roughly 66% annualized returns before fees, year after year. No other fund has matched that consistency. He used algorithms and data-driven systems to turn market chaos into profit.
Reading about him was like opening a new world. Here was proof that discipline, mathematics, and systems could outclass human intuition. I was inspired. I wanted to learn, not to replicate his billion-dollar operation, but to see what could be extracted and simplified for an individual like me.
The Early Experiments
I began coding small trading systems. My tools were primitive compared to what Medallion had, but the principle was the same: look for patterns, test them, and automate.
I experimented with ETFs like SPY, QQQ, VIX related ETFs and TLT. I tried pair trading. I tried momentum rules. Some worked for a while, then broke. Complexity was seductive, but fragile.
In 2007, I attended a quant strategy conference in New York City. Bright minds gathered in Manhattan, building next-generation platforms, writing algorithms that ran faster than any human could think. It was dazzling. But something bothered me: the more complex the systems became, the more brittle they looked.
The Da Vinci Moment
Leonardo da Vinci once said, “Simplicity is the ultimate sophistication.” That quote stayed with me.
By 2010, after three years of experiments, I realized the truth: the edge isn’t in outsmarting the market with endless models. The edge is in systemizing discipline. Complexity collapses, but simplicity scales.
Instead of predicting, I focused on structuring buys.
Instead of chasing hot stocks, I turned to broad ETFs, especially QQQ – which represents the NASDAQ 100, the backbone of modern innovation.
Instead of fearing volatility, I saw it as an ally.
That’s when the idea of QuantCompounding™ was born.
QuantCompounding™ Framework by Munawar Abadullah
QuantCompounding™ is not “quant investing” in the Wall Street sense. It doesn’t require multi-million-dollar systems, supercomputers, or PhDs in mathematics. It is the simplified version for disciplined individuals. A framework anyone can use to let volatility work in their favor.
Here are its five pillars:
1. Daily Slice™
Break your monthly allocation into 20 trading days. Instead of putting $600 on the first day of the month, put $30 each day. Half the time, you’ll buy at lower prices. Over years, your average cost basis drops. You can adjust your Daily Slice according your your investing amount.
2. Friday MAX™
History shows Fridays often bring weaker markets, as traders close positions. By committing an extra $100 (or $500, or $1000 whatever you can afford) on Fridays, you tilt your system toward discount entries.
3. Fear Multiplier™
When the VIX spikes and goes to FEAR zone, or when markets fall 10%+, double your buys. Fear gives you the cheapest shares you’ll ever see. This is how investors in 2008 and during COVID multiplied their wealth while others froze.
4. Reinvestment Loop™
Reinvest all dividends. This is compounding squared — new shares generating new dividends, creating exponential growth.
5. Crash Harvesting™
Never stop during crises. The greatest wealth transfers happen when others sell in panic. 2008, COVID 2020, dot-com collapse – those who kept buying harvested the future. When market is down 20% or more buy as much as you can on daily biases. Don’t wait for the more dips. Keep scoping.
The Barrier That Fell
In the early days, there was a problem. Commissions. Buying daily slices was too expensive for an individual investor. Unless you had access to Interactive Brokers or institutional accounts, fees made this impractical.
Then came Robinhood and the rise of commission-free apps. Suddenly, anyone could buy fractional shares daily without cost. The tools once reserved for elite quants became available to the masses.
This was the democratization of investing. What had once been a privilege of billion-dollar funds became an option on your phone. Today, a student with $2/day can apply the same discipline as a Wall Street quant.
Why This Works
Markets are up roughly 54% of the time, but they’re down almost half of all trading days. Those down days are where your system quietly wins. Volatility, which scares most people, lowers your average cost.
Consider this:
- In 2008, fear dominated. Prices collapsed. A QuantCompounding™ investor would have doubled their slices, accumulating at historic lows.
- In March 2020, during COVID, the VIX exploded. Panic was everywhere. Doubling buys then created massive gains when markets recovered.
This isn’t about timing the market. It’s about removing timing from the equation entirely.
Turn Fear into Fortune
I call this chapter Turn Fear into Fortune because that is the essence of disciplined investing. Most people let fear paralyze them – they freeze during downturns, they sell in panic, or they wait endlessly for the “perfect entry.”
But fear, when systemized, becomes your greatest ally. Every market collapse, every spike in the VIX, every red headline is not a threat – it is fuel.
QuantCompounding™ flips the script. Instead of avoiding fear, you use it. You double your buys during corrections. You keep accumulating when others are dumping. You harvest volatility, rather than run from it.
This is how you transform downturns into wealth-building opportunities. Not by being a genius, but by letting discipline turn fear into fortune.
The true path is not brilliance. It is discipline made automatic.
QuantCompounding™ takes the fear out of investing and replaces it with a routine. A routine that harvests volatility, reinvests growth, and never stops during storms.
Closing Reflection
Jim Simons built the most successful quant fund in history. I took inspiration from his genius, then adapted it into a framework for ordinary investors.
QuantCompounding™ is my contribution. A way for anyone – regardless of income, background, or geography – to convert discipline into wealth.
Not through luck. Not through prediction. But through relentless execution.
Disclaimer
The strategies, stories, and frameworks I share in this book – including QuantCompounding™ and its methods such as Daily Slice™, Friday MAX™, Fear Multiplier™, Reinvestment Loop™, and Crash Harvesting™ – are based on my personal experience as an investor, technologist, and former CIO.
This book (article) is not financial advice. I am not a licensed financial adviser, wealth manager, or certified investment professional. I do not provide individualized investment recommendations, and nothing here should be taken as a directive to buy, sell, or hold any specific security or financial product.
What I write about reflects what has worked for me in my own journey. I share these systems for educational and hobbyist purposes, so that readers can:
- Understand different approaches to managing money.
- Learn new skills to think systematically about wealth creation.
- Explore ways to apply discipline, patience, and consistency in their own financial lives.
Every reader has a unique financial situation, risk tolerance, and set of goals. What works for me may not work for you. Before making any financial decision, you should:
- Conduct your own research.
- Consider your personal circumstances.
- Consult with a qualified financial adviser or professional who understands your specific needs.
Investing always carries risk. Markets go up and down. Volatility is part of the process, but it also means losses are possible. No strategy can eliminate risk entirely, and past performance is not a guarantee of future results.
If there is one takeaway, it is this: do not follow anyone blindly – not me, not Jim Simons, not Wall Street. Learn, test, simplify, and build your own system.
This book is about empowerment, not prescription. Use it as a guide to expand your capacity and sharpen your discipline, but always take responsibility for your own financial choices.
Before making any investment move, make sure your foundation is strong:
- 📌 11 Fundamental Money Concepts Everyone Should Master
- 📌 The Foundation of Wealth: Your Safety Net Strategy
- 📌 What is Risk-Adjusted Return (and Why Every Investor Must Understand It)
Without fundamentals, a safety net, and risk awareness, you’re not investing – you’re gambling.
MunawarAbadullah #WealthWithMunawar #WisdomToWealth #MunawarPlaybook
