Should I adjust position size before The USD is higher ahead of the data dump and FOMC rate decision?

Before a high-impact event like FOMC and data releases, reduce position size by 40-60 percent. Elevated USD strength combined with imminent volatility expansion typically pushes VIX above 18-20, which degrades the edge of new iron condors under the ALVH methodology.

ALVH prioritizes selling premium only when VIX is between 12-17 and the 1SD expected move is inside your wings. With VIX likely to spike and implied move widening dramatically, your current wing width will be too narrow relative to realized risk. Smaller size limits the damage from adverse delta and vega exposure during the event.

Enter or add to full-size iron condors only after the FOMC reaction settles and VIX mean-reverts below 17. Until then, trade half-size or less, keep 45-50 delta short strikes, and maintain at least 1.8x wing width relative to the credit received. This preserves capital and keeps you in a position to deploy the ALVH framework once the volatility crush materializes post-event.