Contract Rollovers

In TPA commodity databases , only the front or active contract's price information is stored. On rollover to a new contract, there may be an artificial gap in the price data due to the switch in contracts. This kind of gap can cause problems with various technical analysis schemes, including the profile . TPA provides an option (Adjust rollovers ) to deal with these gaps as follows.

The most recent contract in the database is always reported at the actual exchange price. All earlier contracts are optionally adjusted or offset by adding (or subtracting) the difference between the new and old contract closing prices on the day preceding rollover to the new contract. These offsets are accumulated back to the beginning of the database.

The default action (adjust to remove gaps, or no adjustment at all) can be specified in the Preferences Misc dialog. In addition, each time you explicitly open a database using the File |Open Commodity Database menu, you get the opportunity to choose to override the adjustment setting for this file independently.