Dear Tribe,
Most investors buy the S&P 500 (SPY) and just hold on — through every crash, every recovery, every news headline.
It works… but it’s slow, and the drawdowns can be painful.
So four years ago, we introduced a little twist called ParaKoopa — inspired by the flying turtle from Super Mario.
The idea was simple:
Take something steady, like the S&P 500 — and give it wings.
🚀 The Original ParaKoopa
Instead of buying the S&P 500 directly, we buy a long-term call option on it.
It behaves almost like owning the index, but needs only a small fraction of the capital.
Strategy | Cash Used | Market Move ($600 → $800) | Profit | ROI (Return on Investment) |
|---|---|---|---|---|
Buy & Hold SPY (100 shares) | ≈ US $ 60,000 | + 33 % | ≈ US $ 20 000 | + 33 % |
ParaKoopa (LEAPS Call) | ≈ US $ 4,000 | + 33 % | ≈ US $ 17 000 | + 400 % |
You still follow the same market, but your money works harder.
And if things go wrong, your maximum loss is just the option cost (about $4 000), not your whole $60 000.
That’s the power of ParaKoopa —
a smart way to ride the S&P’s long-term growth, with less cash and less downside.
⚠️ The Weak Spot — and How We Fixed It
Options lose a bit of value each day.
If the market stays flat for too long, the option “melts” slowly in value — like ice cream in the sun.
So we thought:
What if we only stay invested when the market is healthy?
That’s how ParaKoopa 200 was born.
🧠 The Upgrade — ParaKoopa 200
We kept the same setup (long-term call options on SPY)
but added one simple rule:
✅ Only invest when SPY is above its 200-day average.
🛑 If it drops below, step aside and wait.
This filter keeps us out of major bear markets, where drawdowns get ugly
Strategy | Average Yearly Return | Max Drawdown | What It Feels Like to Hold |
|---|---|---|---|
Buy & Hold SPY | ≈ 14 % | –50 % | Up and down roller coaster |
ParaKoopa (Original) | ≈ 42 % | –88 % | Huge gains, but wild swings |
ParaKoopa 200 | ≈ 32 % | –15 % | Steadier, easier to sleep at night |
In short: you give up a bit of top speed, but gain a lot of control.
And a strategy you can actually stick with — is the one that compounds best.
💡 Why It Works
Uses the S&P 500’s proven uptrend instead of guessing stocks or crypto.
Leverages options for faster growth with less cash.
Limits loss to what you pay up front.
Adds a simple trend rule to avoid big crashes.
It’s simple. Repeatable. And it actually makes sense.
🎓 Want to see exactly how we build systems like this?
Join our free Quant X Accelerator Masterclass (90 minutes):
✅ The 3 key strategies we’ve refined over 20 years
✅ How we find and test real edge in the market
✅ Common mistakes retail traders make
✅ How to build a strategy you can actually follow
If you’re tired of guessing and ready to trade with clarity —
this is where it starts.
To your growth,
Team Quant X
Backtest. Optimise. Trade.
Editor: Dareen Tan
Disclaimer:
The views shared here are for educational purposes only and reflect our team’s opinions. They should not be taken as financial, investment, or legal advice. Please do your own due diligence before making any financial decisions.
