Risk Management
When the VIX is at 17.95, do we still take Balanced Iron Condors targeting a $1.15 credit or should we stick exclusively to the Conservative tier and let the ALVH ride?
VIX levels tier selection ALVH Iron Condor risk scaling
VixShield Answer
At VixShield, our approach to Iron Condor Command placement is guided by Russell Clark's VIX Risk Scaling framework, which provides clear rules based on current VIX levels rather than discretionary judgment. With the VIX currently at 17.95 and below its 5-day moving average of 18.58, we remain in a regime where both Conservative and Balanced tiers are fully active. The Conservative tier targets a $0.70 credit with an approximate 90 percent win rate, roughly 18 out of 20 trading days, while the Balanced tier seeks a $1.15 credit for those comfortable with a moderate increase in risk. We do not restrict to Conservative only at this VIX reading. Aggressive tier targeting $1.60 is blocked above VIX 15, but Balanced remains available. Our signals fire daily at 3:10 PM CST after the SPX close via the 3:09 PM cascade, using RSAi to optimize strikes based on real-time skew, EDR for the Expected Daily Range, and current VIX momentum. At VIX 17.95 we are still in contango as confirmed by the Contango Indicator, favoring premium collection. The ALVH Adaptive Layered VIX Hedge operates independently of Iron Condor tier selection. Once opened in a 4/4/2 contract ratio across short, medium, and long VIX calls at 0.50 delta, it remains fully active regardless of VIX level, cutting portfolio drawdowns by 35 to 40 percent during spikes at an annual cost of only 1 to 2 percent of account value. We never add stop losses, relying instead on the Set and Forget methodology and the Theta Time Shift recovery mechanism that rolls threatened positions forward to 1-7 DTE when EDR exceeds 0.94 percent or VIX rises above 16, then rolls back on VWAP pullbacks to harvest additional theta without adding capital. Position sizing stays at a maximum of 10 percent of account balance per trade, and auto-execution via PickMyTrade is available for the Conservative tier only. This disciplined VIX Risk Scaling prevents emotional decisions and has delivered consistent results across 2015-2025 backtests within the Unlimited Cash System. All trading involves substantial risk of loss and is not suitable for all investors. For deeper implementation details on the Iron Condor Command, ALVH layering schedules, and live signal examples, we invite you to explore the SPX Mastery resources and VixShield educational platform.
⚠️ 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 this VIX 17.95 scenario by referencing the exact VIX Risk Scaling thresholds rather than guessing comfort levels. A common misconception is that any reading above 15 requires dialing back to Conservative only, yet experienced members emphasize that Balanced remains permitted until VIX crosses 20. Discussions frequently highlight how ALVH runs continuously as portfolio insurance, freeing traders to select tiers based on account size and risk tolerance instead of fear. Many note that sticking rigidly to Conservative at this level leaves premium on the table during contango regimes, while others stress reviewing EDR and RSAi output each day at 3:10 PM CST to confirm the signal. Overall the consensus aligns with systematic rules over intuition, with participants sharing that following the framework reduces second-guessing and improves long-term adherence to the Set and Forget approach.
📖 Glossary Terms Referenced
Put This Knowledge to Work
VixShield delivers professional iron condor signals every trading day, built on the methodology behind these answers.
Start Free Trial →