Contract Roll adjustment

[MrSharky]

Make a proper contract roll adjustment, I know many traders forget about this small but so important detail in their charts.

 

[Cashley]

Are the settings in the latest motive wave located in another section?

I am trying to follow the instructions in this documet:

MotiveWave Docs

docs.motivewave.com

But cannot find the settings where that document says they should be.

Thanks for your help!

 

[MrSharky]

Are the settings in the latest motive wave located in another section?

I am trying to follow the instructions in this documet:

MotiveWave Docs

docs.motivewave.com

But cannot find the settings where that document says they should be.

Thanks for your help!

I'm doing my rolls directly of the right click on the chart "Roll to next contract" except for continuous contracts that have separate settings for this under instrument settings. "Edit instrument"

This are the settings for continuous contracts that I use. And I know that other use.

 

[Ghome]

For the roll analysis to next contract what is the best adjust method... last close, unadjusted, or Sepcific amount?

 

[MrSharky]

For the roll analysis to next contract what is the best adjust method... last close, unadjusted, or Sepcific amount?

If you want to use the chart I posted above use, specific amount, and use the amount in the chart.

Although you are on the wrong contract to roll to, The new contract is ESH4, the values in my chart are for ESH4

 

[Ghome]

If you want to use the chart I posted above use, specific amount, and use the amount in the chart.

Although you are on the wrong contract to roll to, The new contract is ESH4, the values in my chart are for ESH4

Yes you are correct about the contract I had just done it on ESH4 but then I wanted to give you a screenshot and it showed the next contract. Got it thank you I will do a specific amount. I use Edge Clear as well, where is the rollover adjustment shown on their website that way in the future I can go there for the adjustments.

Thank you!

 

[Ghome]

Also so this is the correct way to do it.

 

[MrSharky]

Also so this is the correct way to do it.

They post it on twitter on roll days, and yes thats the correct way.

 

[Ghome]

Appreciate you! THank you!

 

[igor.s]

I personally use "Unadjusted", it works well for me.

cheers.

 

[MrSharky]

If you use any type of "historical" data in your decission making when trading futures. (Unless you only trade what you see in front of you just in the moment). There is a reason why you should backadjust your data. I can recommend watching the link below for reasoning behind it.

This is not directed at you igor.s, (happy it works for you) just a general information to who ever is interested in the topic and the reasoning behind it.

 

[nooris]

Just to present the opposing view, Peter Brandt said the following:

I highly detest and object to price-adjusted futures charts. I have never used them and never will. They are highly deceptive. The attempt to get rid of roll gaps results in charts showing historical prices with no resemblance to historical reality.

Here's a nuanced discussion presenting both sides: https://jackschwager.com/should-fut...t-contract-rollovers-a-difference-of-opinion/ (if its too tedious to read, scroll down to the conclusion).

My own conclusion: it makes no difference, but one method is more complicated and introduces human error, and wreaks havoc on your TPOs.

Having said all that, FT71 is a tremendous trader, and many other great traders also back adjust. As with everything in this field, its part science, part voodoo, and there is no one size fits all.

Edit: Attached is Grok's view (just because I'm like a kid with new toy)