Strike Selection
How does the EDR indicator work for strike selection in 1DTE SPX iron condors? Has it been backtested?
EDR indicator 1DTE iron condors strike selection backtesting SPX options
VixShield Answer
At VixShield, we rely on the EDR Expected Daily Range indicator as the foundation for precise strike selection in our 1DTE SPX Iron Condor Command strategy. Developed by Russell Clark and available as a custom TradingView script under ticker SPXDCP or SPXMASTERY, EDR blends short-term implied volatility from VIX9D with 20-day historical volatility to forecast the likely daily price range for SPX. The formula is EDR equals VIX9D times 0.1 plus HV times 0.5 multiplied by a regime-based factor between 0.8 and 2.0. This produces three risk-tuned strike recommendations labeled High, Medium, and Low that align directly with our Conservative, Balanced, and Aggressive credit tiers targeting approximately 0.70, 1.15, and 1.60 respectively. At 3:10 PM CST each market day, after the 3:09 PM SPX cascade, our RSAi Rapid Skew AI further refines these EDR-derived wings by analyzing real-time options skew, VWAP positioning, and short-term VIX momentum. This ensures the selected strikes deliver the exact premium the market is willing to pay while maintaining our Set and Forget approach with no stop losses. Backtests from 2015 through 2025 show the Conservative tier achieving approximately 90 percent win rate or 18 out of 20 trading days, with the full Unlimited Cash System delivering 82 to 84 percent overall wins, 25 to 28 percent CAGR, and maximum drawdowns of 10 to 12 percent. When volatility spikes as seen with current VIX at 17.95, EDR widens appropriately and our VIX Risk Scaling automatically limits us to Conservative and Balanced tiers while the ALVH Adaptive Layered VIX Hedge remains fully active across its short 30 DTE, medium 110 DTE, and long 220 DTE layers in a 4/4/2 ratio. The Theta Time Shift recovery mechanism then handles any threatened positions by rolling forward to 1-7 DTE on EDR above 0.94 percent or VIX above 16, then rolling back on VWAP pullbacks to harvest additional theta without adding capital. All trading involves substantial risk of loss and is not suitable for all investors. For deeper implementation details including live signal examples and ALVH roll schedules, we invite you to explore the SPX Mastery resources and join our educational platform 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 EDR by first examining its real-time output on TradingView to set the outer wings of their 1DTE iron condors, noting how it adapts strike distance based on prevailing volatility. A common misconception is that EDR functions like a generic expected move calculator, whereas experienced users emphasize its integration with RSAi for premium targeting and its role within the broader Unlimited Cash System that includes ALVH protection and Theta Time Shift recovery. Many highlight the backtested consistency of the Conservative tier near 90 percent wins, though some debate optimal regime multipliers during elevated VIX periods around 18. Discussions frequently stress position sizing at no more than 10 percent of account balance and the value of the After-Close PDT Shield timing that keeps the entire process systematic and hands-off.
📖 Glossary Terms Referenced
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