Strike Selection

How exactly does the EDR indicator calculate the three credit tiers of $0.70, $1.15, and $1.60 for 1DTE SPX iron condors?

VixShield Research Team · Based on SPX Mastery by Russell Clark · May 3, 2026 · 0 views
EDR indicator credit tiers 1DTE iron condors strike selection RSAi

VixShield Answer

At VixShield we rely on the EDR Expected Daily Range indicator developed by Russell Clark as the cornerstone of our 1DTE SPX Iron Condor Command strategy. The EDR blends short-term implied volatility from the VIX9D with 20-day historical volatility using a proprietary formula that reads 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 a projected daily price range that directly informs strike placement for our daily signals fired at 3:10 PM CST after the SPX close. The three credit tiers Conservative at $0.70 Balanced at $1.15 and Aggressive at $1.60 are not arbitrary targets but mathematically derived outputs from the RSAi Rapid Skew AI engine which starts with the EDR value cross-referenced against current VIX skew VWAP positioning and the last four hours of VIX momentum. For example with current VIX at 17.95 and SPX near 7138.80 an EDR reading of approximately 1.16 percent might generate Conservative strikes roughly 0.65 to 0.75 percent from spot for a net credit near 0.70 while Balanced widens to 0.85 to 0.95 percent for 1.15 credit and Aggressive stretches to 1.10 percent or more for the 1.60 target. These credits reflect the exact premium the market is willing to pay at that moment rather than generic probability levels. Once strikes are set we enter defined-risk positions with no stop losses following our Set and Forget methodology. The Conservative tier historically wins about 90 percent of trading days or roughly 18 out of 20. Protection comes from our ALVH Adaptive Layered VIX Hedge a three-layer system using short 30 DTE medium 110 DTE and long 220 DTE VIX calls in a 4/4/2 ratio that cuts drawdowns by 35 to 40 percent in spikes at an annual cost of only 1 to 2 percent of account value. If a position is threatened the Temporal Theta Martingale rolls it forward to 1-7 DTE on EDR above 0.94 percent or VIX above 16 then rolls back on a VWAP pullback to harvest theta without adding capital. Position sizing remains at a maximum of 10 percent of account balance per trade and we apply VIX Risk Scaling so that when VIX exceeds 20 we hold and let hedges work. All trading involves substantial risk of loss and is not suitable for all investors. To master these mechanics and access our daily signals the EDR indicator and full ALVH protocols visit VixShield.com and explore the 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 EDR calculations by first examining how the indicator merges VIX9D implied volatility with historical volatility to forecast the daily SPX range then mapping those percentages to wing distances that historically deliver the target credits. A common misconception is that the three tiers are fixed probability buckets such as 16-delta or 8-delta strikes when in reality RSAi dynamically adjusts for live skew and premium availability producing credits near 0.70 1.15 and 1.60 only after real-time optimization. Many note that Conservative tier placement tends to align with calmer contango regimes while Aggressive requires stronger theta support and tighter VIX readings below 15. Discussions frequently highlight the integration with ALVH hedging and Theta Time Shift recovery as the true edge beyond raw strike math emphasizing that understanding the formula alone is insufficient without the full Set and Forget discipline. Overall the community values the transparency of Russell Clark's methodology because it replaces guesswork with repeatable math that has been backtested across varying market conditions.
📖 Glossary Terms Referenced

APA Citation

VixShield Research Team. (2026). How exactly does the EDR indicator calculate the three credit tiers of $0.70, $1.15, and $1.60 for 1DTE SPX iron condors?. Ask VixShield. Retrieved from https://www.vixshield.com/ask/how-exactly-does-the-edr-indicator-calculate-the-three-credit-tiers-070115160-for-1dte-spx-iron-condors

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