Thursday, September 9, 2010

How I Handle Contract Rollover

Rollover day gives a lot of people headaches. Here is how I decide when to switch to the new contract. If I am keying off a 4 minute chart I wait until the new contract has more volume in the current 4 minute candle than the old contract - then I switch. Simple. I don't worry about which contract has more volume for the day. I want to know that what I am trading at the current moment is the most liquid.

2 comments:

Ilya B said...

But if ur a day trader, it plays no role?

TraderSmarts said...

It matters because as a day trader you need to know what contract to trade. I want to be trading the contract that is most liquid (has the most volume) Cheers!