Thursday, March 27, 2014

Futures contact - "continuation X months"?


According to my backtests it is more profitable to trade on Coffee futures contracts that is "continuation 4 months" than "continuation 2 months" and least profitable is "continuation 1 months".


However I don't really understand what "continuation X months" mean, my guess is that when a contract expires you buy a new one with expiration date 4 months forward, is this correct?


Is "continuation 4 months" potentially more profitable because it is more far in the future and therefore has more potential?


How do you buy "continuation 4 months" practically, do you just do it manually?


I am very confused.


Source for my coffee data







Submitted March 27, 2014 at 08:08AM by oljhdf7894 http://ift.tt/P6i6z4

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