How to Trade on RollOver Day
Rollover day is the day on which most of the traders in the market move from trading the current contract to the next contract. Put another way, it is the day when open interest of the next expiring contract exceeds that of the current expiring contract.
There are general rules specific to each market that describe when the typical rollover points occur, and TradeStation follows those rules when recommending contract rollover days. For example, if the typical open interest of the next expiring S&P 500 contract exceeds the open interest of the current S&P 500 contract on the 8th calendar day prior to expiration, the TradeStation Network interprets the rollover on that day, regardless if the relationship between the open interest of the current contract and the open interest of the next expiring contract would have indicated a rollover point.
The contract months for the futures contracts we trade are Mar, Jun, Sep, and Dec, with symbols H, M, U and Z.
TradeStation now allows traders to trade a continuous contract. This means that the data from the old contract is adjusted to the pricing on the new contract, so that there is sufficient back data for the strategies to generate trades. On rollover day, you will need to change the symbol on the chart you autotrade to the new contract, and add an "@" to the front.
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