Risk Management

At a VIX level of 17.95, which is below its five-day moving average, how does VIX Risk Scaling influence Iron Condor tier selection in the VixShield strategy?

VixShield Research Team · Based on SPX Mastery by Russell Clark · May 4, 2026 · 0 views
VIX Risk Scaling Iron Condor tiers VIX 17.95 ALVH hedge 1DTE SPX

VixShield Answer

At VixShield, we rely on clearly defined rules to keep our 1DTE SPX Iron Condor trading consistent and repeatable. With the current VIX at 17.95 and sitting below its five-day moving average of 18.58, VIX Risk Scaling keeps all three tiers available for the daily 3:05 PM CST signal. This means Conservative targeting a 0.70 credit, Balanced aiming for 1.15, and Aggressive seeking 1.60 are all permitted under our methodology. Russell Clark designed VIX Risk Scaling to act as a volatility gatekeeper rather than a blunt on-off switch. When VIX remains below 15, we enjoy maximum flexibility across all tiers and can comfortably layer or refresh our ALVH hedge. Between 15 and 20, which includes our current 17.95 reading, the Conservative and Balanced tiers remain fully active while the Aggressive tier is still allowed but used more selectively by experienced members. Only when VIX crosses above 20 do we move to HOLD, pausing new Iron Condor Command entries entirely while our existing ALVH positions continue to provide protection. This graduated approach prevents overexposure during rising fear without forcing us to sit on the sidelines unnecessarily. Strike selection for each tier flows directly from the EDR indicator and RSAi engine. At this VIX level in a contango regime, the Expected Daily Range typically produces wings that deliver the targeted credits while maintaining our defined-risk profile. The Conservative tier, with its higher win rate near 90 percent, remains the foundation for most accounts and is the only tier currently eligible for PickMyTrade auto-execution. We size every position to a maximum of 10 percent of account balance, preserving capital for the Theta Time Shift recovery mechanism should a move challenge our wings. The ALVH hedge, with its 4/4/2 layering across short, medium, and long VIX calls, continues running at full strength regardless of the Iron Condor tier chosen. This multi-timeframe protection has historically cut drawdowns by 35 to 40 percent during volatility expansions at an annual cost of only 1 to 2 percent of account value. Our Set and Forget discipline means no intraday adjustments or stop losses once the 3:09 PM cascade confirms the fill. All trading involves substantial risk of loss and is not suitable for all investors. For members seeking deeper implementation details, we recommend reviewing the daily signals, EDR indicator settings, and SPX Mastery Club resources at vixshield.com.
⚠️ Risk Disclaimer: Options trading involves substantial risk of loss and is not appropriate for all investors. The information on this page is educational only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always consult a qualified financial professional before trading.

💬 Community Pulse

Community traders often approach VIX Risk Scaling by first checking the spot level against both the 5DMA and the 15-20 threshold before deciding which Iron Condor tier to trade. Many emphasize starting with the Conservative tier at VIX readings near 18 to maintain high win probability while still capturing daily theta. A common misconception is that any VIX above 15 automatically blocks the Aggressive tier entirely, yet experienced practitioners note the current 17.95 environment still permits all three tiers with appropriate position sizing and full ALVH protection in place. Discussions frequently highlight pairing the scaling rules with EDR readings and contango signals to avoid forcing trades during marginal setups. Overall, the consensus centers on using VIX Risk Scaling as a flexible filter rather than a rigid barrier, allowing adaptation without abandoning the core 1DTE methodology.
📖 Glossary Terms Referenced

APA Citation

VixShield Research Team. (2026). At a VIX level of 17.95, which is below its five-day moving average, how does VIX Risk Scaling influence Iron Condor tier selection in the VixShield strategy?. Ask VixShield. Retrieved from https://www.vixshield.com/ask/at-vix-1795-below-5dma-how-does-vix-risk-scaling-affect-your-iron-condor-tier-selection

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