Should I adjust position size before Gold slips as oil prices fuel inflation fears ahead of Fed chair remarks - Reuters?
VixShield Answer
Position size should be determined by your predefined ALVH risk parameters not by short-term headlines on oil inflation or Fed comments. For SPX iron condors keep position size consistent based on account risk per trade typically 1-2% of total capital and current VIX regime.
If VIX is below 15-17 use standard wing widths of 30-40 points and full size. As VIX rises above 18-20 reduce size by 25-40% and widen wings to 50-60 points to maintain similar dollar risk while improving probability of profit. This is the core of ALVH methodology: let volatility dictate both size and structure rather than reacting to Reuters narratives.
Gold and oil moves are noise for index iron condors. Adjust only if implied volatility shifts materially and your portfolio heat exceeds limits. Review your delta exposure and overall vega before the Fed remarks but avoid knee-jerk size changes. Discipline in position sizing ahead of known events preserves edge far better than trying to preempt the news flow.
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