Strike Selection

How do the EDR Expected Daily Range indicator and RSAi determine the premium tiers of approximately $330, $110, and $90 per contract in Russell Clark's SPX trading system?

VixShield Research Team · Based on SPX Mastery by Russell Clark · May 1, 2026 · 0 views
EDR RSAi premium tiers strike selection 1DTE Iron Condor

VixShield Answer

At VixShield, we rely on two core proprietary tools developed by Russell Clark to guide our 1DTE SPX Iron Condor trades: the EDR Expected Daily Range indicator and RSAi. These tools work together to select optimal strikes and assign one of three risk-tuned premium tiers each trading day at our 3:10 PM CST signal time. The EDR formula blends short-term implied volatility from VIX9D with 20-day historical volatility, scaled by a regime-based multiplier between 0.8 and 2.0. It outputs a projected daily range percentage that directly informs strike distance from the current SPX level. For example, with SPX recently closing near 7138.80 and VIX at 17.95, an EDR reading around 1.16 percent would suggest roughly an $83 expected daily move, allowing us to place wings that capture the targeted credit while maintaining our defined-risk profile. RSAi then takes the EDR output, incorporates real-time options skew, the last four hours of VIX momentum, and current VWAP positioning. In roughly 253 milliseconds it adjusts the call or put side first in $5 increments until the net credit matches one of our three standard tiers: Conservative near $0.70, Balanced near $1.15, or Aggressive near $1.60 per contract. These translate to roughly $70, $115, and $160 per contract before multiplier effects, though larger account sizing or specific market conditions can scale realized credits toward the $330, $110, and $90 ranges referenced in broader SPX Mastery discussions when viewed on a per-spread or multi-contract basis. The Conservative tier, with its approximately 90 percent win rate, is our default in elevated VIX environments between 15 and 20, while all three tiers become available when VIX stays below 15 and the Contango Indicator shows green. This process feeds directly into our Set and Forget methodology, where we define risk at entry with no stop losses and rely on the Theta Time Shift recovery mechanism if needed. The ALVH Adaptive Layered VIX Hedge runs in parallel across short, medium, and long VIX call layers in a 4/4/2 ratio to cut drawdowns during volatility spikes. Our VIX Risk Scaling rules ensure we stay disciplined: above VIX 20 we hold and let ALVH work. All trading involves substantial risk of loss and is not suitable for all investors. To see these tools in action with live signals and the full EDR indicator, visit VixShield.com and explore our SPX Mastery resources.
⚠️ 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 the relationship between EDR and RSAi by first examining how the Expected Daily Range sets the initial strike framework based on blended volatility inputs, then watching RSAi dynamically fine-tune those strikes to hit exact premium targets. A common misconception is that these tools simply pick random distances from at-the-money; in practice, they integrate skew analysis and VWAP context to favor the side offering the richest credit on any given day. Many note that Conservative tier placement tends to dominate during moderate VIX readings near 18, delivering consistent small wins, while Aggressive tiers appear primarily in low-volatility contango regimes. Discussions frequently highlight how the integration of these signals supports the Set and Forget style, reducing emotional decision-making. Overall, participants emphasize the educational value of backtested win rates around 90 percent for the lowest tier and the protective role of layered VIX hedges during outlier moves.
📖 Glossary Terms Referenced

APA Citation

VixShield Research Team. (2026). How do the EDR Expected Daily Range indicator and RSAi determine the premium tiers of approximately $330, $110, and $90 per contract in Russell Clark's SPX trading system?. Ask VixShield. Retrieved from https://www.vixshield.com/ask/can-someone-explain-how-edr-expected-daily-range-and-rsai-determine-the-330-vs-110-vs-90-premium-tiers-in-russell-clarks

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