Uber Max Analysis using AI Monica backtestedMEG.TO Trading Methodology 🎯
1. The Line in the Sand (LITS) System
Current LITS: C$27.89
Purpose: Acts as our binary decision maker
Rule: Only trade bullish above, bearish/avoid below
Current Status: Trading at C$23.09 (BELOW line by -17.2%)
2. Entry Criteria
Must be ABOVE C$27.89
Volume confirmation required
Prefer low IV environments (<30% IV Rank)
Look for consolidation patterns or clear trend
3. Options Strategy Preferences
ATM Strikes: Primary focus due to higher Vega
Delta Target: Minimum 0.30 delta
Position Sizing:
Larger above LITS
Small/No positions below LITS
4. Risk Management Rules
Hard Stop: Below Line in the Sand
Position Exit:
Full exit when price breaks below C$27.89
Scale out at technical resistance
Options Specific:
No naked puts below LITS
Define risk on all positions
Roll or close at 21 DTE
5. Current Market Context
52-Week Range: C$19.68 - C$34.00
Trading Channel: C$22.54 - C$25.06
Status: Bearish (Below LITS)
Action Required: NO new bullish positions
6. Recovery Requirements
Reclaim C$27.89
Hold above for 2-3 sessions
Show volume confirmation
Develop clear base pattern
7. Key Principles
Discipline over emotion
System rules are non-negotiable
Capital preservation first
Wait for setup, don't chase
This methodology has kept us out of trouble during the recent decline from C$34 to C$23.09, demonstrating its effectiveness in capital preservation. Remember: The best trade is often no trade when conditions aren't met.
