Not totally sure to understand fully your question.
Are you talking about the {server_name}.out file located in the {Domain_Path}/servers/{server_name}/logs ?
If so, I've never found anyway to rotate those logs automatically so I run a script each day to rotate it (basically copying it to another name, zip it and echoing a NULL in the orginal file...erasing the older one after).
If you are talking about redirecting StdOut to the logs though, that can be done within the console for each server in the logging tab by checking "Redirect stdout logging enabled". Configuration to rotate those logs can also be done within that tab.
On that, StdErr can also be redirected, but not from the console (in WL9). You have to put "RedirectStderrToServerLogEnabled" at true in the MBean tree by wlst (it's located at /Servers/{server_name}/Log/{server_name}
I know the question was ask long time ago but hoping it would help nonetheless