Manage My Booking Thomas Cook “Market Quality” Concept With Market Internals

In today’s article, I would like to share with you a concept that I have presented to some of my students. It’s a pretty simple, yet powerful concept on how Market Internals can be used:Take an existing Market Internals, let’s say NYSE TICK.Use NYSE TICK to define market “quality” zones: non-trending, trending, and strongly-trending.By doing this, we have created 3 different zones of quality for this given market, which I will call “Market Quality” (MQ).For each MQ zone, we can either set up different risk exposure/numbers of contracts or even switch between different trading strategies.Let’s take a look at an example:If we use NYSE TICK (this MQ concept can be applied to all other Market Internals, anyway), then the first step is to specify the zones as non-trending, trending, and strongly-trending.According to my experience, the limit when a non-trending market changes to a trending one is at 300 to 400 for a long position, and -300 to -400 for a short position. Then, we need to set up the limit in which trending goes to strongly-trending, which is, based on my experience, somewhere at about +1,000/-1,000.


The definition of these 3 different MQ zones, when using TICK NYSE, looks like this:LONG:Non-trending: 0 to 400Trending: 400 to 1,000Strongly trending: above 1,000SHORT:Non-trending: 0 to -400Trending: -400 to -1,000Strongly trending: below -1,000Now, when we have defined the different zones for market quality (MQ), we need to ask ourselves, what do we do with this information? And there are two viable options.The first one is risk management, or changing the number of contracts.You simply test the number of contracts (1-3 or 0-2) for each zone and see how your system behaves when you use a different number of contracts, according to the MQ zone you are in. In this same way you can work, not only with the number of contracts, but also with your stop-loss. It is clear that each zone represents a different volatility and, therefore, using different stop-loss levels for each MQ zone can bring interesting results.This is one of the basic applications of the MQ concept (it can be further developed into a more sophisticated form).The second option is using MQ zones to switch the systems – something like this:Switching systems based on Market Quality zone:Non-trending: scalping systemtrending: trend-following systemstrongly trending: mean-reversion systemFor non-trending market conditions, you will simply use a scalping system that doesn’t need big moves for profits. As soon as the Market Quality changes to a trending market, you will switch to trend-following strategies (for example a breakout strategy). And, as soon as the market reaches a certain level, when the trend might be reaching its end (when NYSE TICK gets above +1000/ below -1000), you should start looking for some counter-trend entries (mean-reversion) strategies, that are waiting for a counter-trend correction after a significant market move (and you try to make some profit from this correction).


Using this approach, you will get one “universal” system that will change its settings according to the Market Quality. This is just a theoretical example – the practical application is up to you. And it is quite a load of work to get from theory to practice. So, let’s get to it!You can also work further on this concept, develop it to more forms and find other ways to use it – the example with TICK is just one of many ways in which Market Quality can be used. Or, you can use a “hybrid” of both these approaches – according to the MQ zone you can switch strategies, change your stop-loss, or maybe alter the number of contracts.What I would do is keep the number of MQ zones low. 2-3 zones are absolutely enough – in the case of more zones, there is the risk that you could not have a sufficient number of trades in each sample.Anyway, now you have a strong and interesting concept, so roll up your sleeves and get to work!Happy trading!

Key Factors to Consider When Buying a Travel and Tour Franchise

If you are considering investing in a travel and tour franchise, it is likely that you have many questions. For many people, the idea of setting their own business can be incredibly daunting experience, but also one of the most liberating experiences of their lives. In this article, we will look at some of key considerations which you should factor in when making this decision.

The travel and tourism industry is literally booming globally – now contributing over two trillion pounds to the economy. More and more people are thinking about how they can get involved in the travel and tourism industry, recognising the explosive and exponential growth. Starting your own travel business from scratch is one option that people often consider, however starting without a network of contacts or even a base starting point can be extremely tricky. A huge number of start ups will fail within 12 months, so always try to avoid this pitfall.

The more popular market to success within the travel industry is the travel, or tour franchise market. What this essentially means is instead of setting up a travel business from the beginning, you can buy a travel franchise which actually gives you a firm starting point to begin your business. There are quite a few travel franchise businesses online, however there are probably only a couple of established businesses. If you do choose to purchase a tour franchise, make sure to do your research and pick the franchise company which is the best fit for you.

So what can you expect in terms of support when you buy a travel franchise? When buying a franchise, there are always different levels of support. Think of this a three-tiered membership: platinum, silver and gold. The more initial investment that you are willing to put up, means the greater level of support and guidance that you are likely to receive. Nonetheless, there are some common levels of support which you should expect from all travel franchises.

The first thing you should expect is a fully comprehensive training or induction programme. Lots of franchise operators will actually offer a residential training course, so this is likely to be an intensive course over a number of days or weeks. This can be a great opportunity to spend significant time with the franchise tour operators and really pick their brains, whilst trying to soak up an incredible amount of information.

It is also likely that they will be inducting a number of other new franchisees at the same time. This is also a fantastic opportunity to meet some like minded people who are also at the beginning of the same journey that you are on. If you can take the opportunity to spend time with them and get to know their motivations behind setting up a new franchise, you can increase your knowledge but also begin to build up your travel network. In the travel industry in particular, your network and who you know can really be a determining factor in how well you do.

You can also expect some of the more practical tools for setting up a new franchise. This might include a laptop, hopefully pre-loaded with any specialist software and templates that you might need. This may not always be included as a standard support tool, so you should always try to make sure that you fully understand everything that is being provided. A functional website, which is branded towards your company name and logo, is also something which you expect.

Finally, you might also receive some branding materials, such as leaflets, tri-folds and business cards. Remember when you meet potential clients, handing them a business card can be a great way to exchange your details with them and keep in touch.