Custom Futures

Questions about MultiCharts and user contributed studies.
kentai
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Custom Futures

Postby kentai » 04 Jul 2011

Like to clarify something.

When I am creating a custom futures, I notice there is a back adjustment mode, what is that for?

I see Difference, Ratio and No Adjustment in it.

Regards,
Ken

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TJ
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Re: Custom Futures

Postby TJ » 04 Jul 2011

Like to clarify something.

When I am creating a custom futures, I notice there is a back adjustment mode, what is that for?

I see Difference, Ratio and No Adjustment in it.

Regards,
Ken
When an old contract is expired,
the new contract usually starts trading at a price other than what the old contract ends at.

To create a continuous contract for technical analysis purposes,
you can adjust the back contract price to "line up" with the current contract price.

Most people select "Difference" as the adjustment mode.

JackR
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Re: Custom Futures

Postby JackR » 06 Jul 2011

This paper might be of interest - http://www.tradingrecipes.com/files/cntcontr.pdf

Jack


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