Lesson Overview

Rolling Positions

Rolling strategies from one month to the next is an effective way to increase trading timeline or duration, giving yourself more time to be right and letting the probabilities work.

In this video we'll give you a couple examples of how rolling a strategy to the next month could be beneficial in keeping a trade alive and finally turning a profit. Moreover, we'll present our guidelines of things you want to make sure to check before you roll the position to the next month.

It's important to realize that rolling is not always beneficial and taking a loss on a trade sometimes can be the best choice as opposed to rolling only to find yourself with an even bigger loss.

More Discussion

Was This Helpful? Add Comments/Questions

  • STEVEN SMASON

    Hi Kirk.
    I think I understand the basics of rolling out to the next month, but can you give a brief explanation as to what would be the reason to do so … extend winning trade, extend losing trade, etc.
    Thank you

    • Hey Steven! We would only extend the timeline (roll) if we can either take in a net credit (reduce risk) or for the same price/value extend the timeline to give ourselves more time to be right. If we have to pay to roll it’s never worth it because you guarantee a loss.

  • I think you’re spot on James – you take a bigger credit for the roll BUT the rate of decay is much slower so the higher credit will take longer to “come in”

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