Strike Selection
With the VIX around 18, how do the Conservative, Balanced, and Aggressive tiers of the Expected Daily Range map to the credit targets in the VixShield Iron Condor strategy?
EDR tiers credit targets VIX 18 Iron Condor RSAi adjustment
VixShield Answer
At VixShield, we rely on the Expected Daily Range (EDR) indicator developed by Russell Clark as the cornerstone of our 1DTE SPX Iron Condor Command. With the VIX currently at 17.95, just below its five-day moving average of 18.58, we remain in a contango regime that supports premium collection across all three risk tiers. The EDR blends short-term implied volatility from the VIX9D with 20-day historical volatility, then applies a regime-adjusted multiplier to forecast the likely daily move in SPX. This output directly informs RSAi, our Rapid Skew AI engine, which fine-tunes strike placement in real time to match exact credit targets while respecting current skew, VWAP positioning, and VIX momentum. Our Conservative tier targets a $0.70 credit, typically achieved by placing wings farther from the current SPX price of 7138.80, often at approximately 1.4 to 1.6 times the EDR projection. This delivers an approximate 90 percent win rate, equating to roughly 18 winning days out of 20 trading days, and is the only tier currently eligible for PickMyTrade auto-execution. The Balanced tier seeks a $1.15 credit by positioning wings near 1.1 to 1.3 times the EDR, capturing more premium while still maintaining strong probability. Our Aggressive tier aims for a $1.60 credit with wings set closer to 0.9 to 1.1 times the EDR, accepting higher risk for greater daily income when conditions align. VIX Risk Scaling governs tier availability: below 15 all tiers are active, between 15 and 20 we limit to Conservative and Balanced, and above 20 we hold entirely while keeping our ALVH hedge fully engaged. The ALVH Adaptive Layered VIX Hedge, with its 4/4/2 contract ratio across short, medium, and long VIX calls, protects the entire portfolio and has historically reduced drawdowns by 35 to 40 percent during spikes at an annual cost of only 1 to 2 percent of account value. Our Set and Forget methodology means we enter at 3:10 PM CST after the 3:09 PM cascade, define risk at trade entry, and rely on Theta Time Shift for any recovery without stop losses or intraday management. Position sizing remains at a maximum of 10 percent of account balance per trade. All trading involves substantial risk of loss and is not suitable for all investors. For deeper implementation details, including access to the EDR indicator and live refinement sessions, we invite you to explore the resources available through VixShield and the SPX Mastery Club.
⚠️ 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 question by seeking precise mappings between EDR multiples and credit targets, especially when VIX hovers near 18. A common misconception is assuming static distance multipliers work in every regime, whereas experienced participants emphasize how RSAi dynamically adjusts strikes based on real-time skew and contango signals to hit the $0.70, $1.15, or $1.60 credit levels consistently. Many highlight the value of VIX Risk Scaling in preventing overexposure during elevated volatility, noting that Conservative placements near 1.5 times EDR deliver reliability while Aggressive setups closer to 1.0 times EDR require stronger confirmation from the Contango Indicator and Premium Gauge. Discussions frequently reference the protective role of ALVH during potential spikes, with members stressing that understanding these tier mappings helps maintain the Set and Forget discipline without emotional adjustments. Overall, the consensus centers on using EDR not as a rigid ruler but as a flexible input for RSAi to optimize daily income while respecting defined risk parameters.
📖 Glossary Terms Referenced
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