I have heard that it is possible to trade on the futures basis.
In my understanding, the futures basis is essentially the difference between the futures price and the underlying asset (also referred as cash). This basis tends to mean-revert, hence it is possible to slightly "anticipate" what its next move will be.
I am looking for a reference for practitioners explaining how to trade on this futures basis. In particular, as holding futures involves:
1) rolling them;
2) pay/receive some carry costs,
I am curious to know how these two effects above are taken into account into such trading strategies.