Should I adjust position size before Balance of Trade?
VixShield Answer
Before the Balance of Trade release, reduce position size by at least 50 percent. This event often triggers sharp VIX spikes that can expand iron condor wings beyond your comfort level and test short strikes quickly.
At current VIX levels above 18, the ALVH methodology already calls for tighter wing widths and smaller sizing to keep defined risk under 2 percent of account equity per trade. Pre-release, drop your normal lot size further so a 2-3 standard deviation move does not breach your 1.5x wing buffer.
Maintain at least 45 DTE and 16-18 delta shorts. If VIX is climbing into the release, skip the trade entirely or wait until the number prints and volatility settles. Proper wing-width management becomes impossible when implied volatility jumps 3-5 points in minutes.
Trade small, stay mechanical, and let the post-release VIX contraction work in your favor on the next setup.
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