Contract Rollover
US Futures / Equities
When trading US Futures, traders must know about Contract Rollover and how it affects price behavior before, during and after the rollover dates. Rollover is when a trader moves his position from the front month contract to a another contract further in the future.
A rollover means carrying forward your future positions from closing your positions near the expiry date to opening the same new position in a further-out month contract. In simpler words, the process of carrying forward your position from one month to another month is called a rollover.
Traders can determine when they need to move to the new contract by watching volume of both the expiring contract and next month contract. During contract rollover period, once the newer contract has traded more volume than the previous contract, this could be a good time to switch the contract dates on your charts.
Automation
Luckily for the smart traders that use AlgoBox™ we have a Contract Rollover indicator that automatically plots a vertical line on our charts.
Click on your chart and press CTRL + i on your keyboard to enter the Indicators configuration window. Find and double-click "AlgoBoX__ContractRollover" to configure the indicator to your chart. Click Apply and then click OK.
Video Tutorial
Manually rolling over the contract is done by typing in the next contract expiry in the window's instrument selector. For example: ES 06-24 to ES 09-24.
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