How do you determine position sizing and hedging for short-duration SPX credit spreads, particularly when capping each iron condor at 10 percent of account value and layering ALVH hedges during VIX spikes?

At VixShield, we approach position sizing and hedging for our short-duration SPX credit spreads through a disciplined, rules-based framework drawn directly from Russell Clark's SPX Mastery methodology. Our core strategy focuses exclusively on 1DTE SPX Iron Condors, with signals generated daily at 3:10 PM CST after the SPX close via the 3:09 PM cascade. We never employ stop losses, relying instead on our Set and Forget approach that incorporates the Theta Time Shift for zero-loss recovery. Position sizing begins with a strict maximum of 10 percent of total account balance allocated to any single trade. This keeps overall portfolio risk contained even during adverse moves. For a $100,000 account, this caps the notional risk per Iron Condor at $10,000, typically achieved by trading between 5 and 20 contracts depending on the credit received and chosen risk tier. We offer three tiers each trading day: Conservative targeting $0.70 credit with an approximate 90 percent win rate, Balanced at $1.15 credit, and Aggressive at $1.60 credit. Strike selection is driven by our proprietary EDR Expected Daily Range indicator combined with RSAi Rapid Skew AI, which analyzes real-time skew, VWAP, and short-term VIX momentum to optimize wing placement for the exact premium target. Hedging is managed through our ALVH Adaptive Layered VIX Hedge, a proprietary three-layer system using VIX calls across short 30 DTE, medium 110 DTE, and long 220 DTE timeframes in a 4/4/2 contract ratio per base unit of 10 Iron Condor contracts. We layer ALVH on VIX spikes, specifically when VIX exceeds 16 or EDR surpasses 0.94 percent, rolling the hedge dynamically to capture vega gains via the Temporal Vega Martingale. This structure has been shown in backtests from 2015 to 2025 to reduce portfolio drawdowns by 35 to 40 percent at an annual cost of only 1 to 2 percent of account value. The integration of ALVH with our Iron Condor Command creates the foundation of the Unlimited Cash System, allowing us to win nearly every day or, at minimum, not lose. All trading involves substantial risk of loss and is not suitable for all investors. For deeper implementation details, including access to our EDR indicator and live sessions, we invite you to explore the resources available through VixShield and the SPX Mastery Club.