Great Minds think Alike?

Coolcat Report is Kevin Kennedy's investment newsletter. Now the newsletter has various subscriptions, but originally there was only one newsletter which followed an momentum strategy, which does very well during bull markets. Here is the strategy in Kevin Kennedy's own words:

The bottom line when you buy a stock is you want the price to go up. So that's what we look for first: stocks with the very best relative price strength. We want to focus our energies on identifying strong performing stocks that share the characteristics of past winners. Most of our stock selections share the following criteria:
* The stock price is higher than it was 1, 3, 6 and 12 months ago.
* The stock has made a new 52-week high in the past two months.
* The company has positive 12-month trailing earnings.
* The ratio between 52-week high and 52-week low meets a minimum standard.
* The stock price is within 20% of the stock's 52-week high and is trading above its 50-day moving average.

Sounds familiar? By now if you have guessed it, good job! Yeah, that's right, so similar to the Double Trouble momentum strategy by Pradeep Bonde of Stockbee

A section of the double trouble post:

- Calculate the lowest close for a stock in last 260 days. If a stock has less than 260 days data calculate lowest close for those many days.

- Calculate percent change from lowest close and select stocks which had 100% plus growth

- Find the highest price in the 100% move and only take stocks which are within 25% of that highest price.

But there are subtle differences, which proves one did not copy from the other, they came up on their own. Which proves that this strategy is really good!

But that brings us to another point. Herein lies the greatness and humility of Stockbee, he is sharing this strategy (and many more excellent ones) in great detail, free of charge while Coolcat report is making money trading the strategy as well as sharing it. Go Stockbee!

I had come across coolcat report long time back and the strategy had made sense, and I invest based on something quite similar (will talk about it in more detail in a later post). So, when I came across Stockbee and was reading double trouble, I was amazed how similar it is to coolcat report strategy. Great minds think alike!! :)