I change my contract months when the added total of Open Interest plus Volume for a given contract becomes greater than the front month contract. It appears that this condition will likely occur today.
[OI(n) +V(n) > OI(f) + V(f)], where:
OI - Open Interest
V - Volume
n - new month
f - front month
If I am forced to make a choice when it is a close call, I will usually trade the contract month with the greatest volume. Volume, for me, represents liquidity!
Showing posts with label formula. Show all posts
Showing posts with label formula. Show all posts
Wednesday, February 13, 2008
Change Contracts Tonight
Labels:
contract month,
formula,
futures,
Open Interest,
volume
Subscribe to:
Posts (Atom)