Using an unadjusted price series from a continuous contract may result in a chart that has significant distortions due to the price gaps between the expiring contract and the subsequent contract. Such distortions happen at the contract rollover or expiration of the listed contract.

For example, if the nearest to expire or front contract is trading at $1.75 on expiration day and the second nearest to expire or back contract is trading at $1.80, then if the price after expiration were $1.82 for the front contract, the one-day move is only $.02 instead of $.07. One approach of getting rid of price distortions at the rollover is to adjust the price series.

MIMIC allows you to adjust price series for futures contracts. All studies used in formulas are adjusted, unless otherwise specified. However, the price series will remain unadjusted unless a rollover policy is established for the series. To establish a rollover policy for a series, you can enter the desired rollover date and policy into the Edit Rollover window by checking Custom Contract and selecting the Edit Rollover button in the Data Builder.