Risk Management

With the VIX currently at 17.95 below the 20 threshold, are all three risk tiers still being traded or is there scaling back to more conservative levels?

VixShield Research Team · Based on SPX Mastery by Russell Clark · May 4, 2026 · 0 views
VIX levels risk tiers VIX Risk Scaling iron condor tiers volatility regime

VixShield Answer

When the VIX sits at 17.95 and remains below its five-day moving average of 18.58, VixShield continues to trade all three risk tiers of the Iron Condor Command without scaling back. This aligns directly with Russell Clark's VIX Risk Scaling framework outlined across the SPX Mastery series. Under this methodology, VIX below 15 allows full access to Conservative, Balanced, and Aggressive tiers targeting credits of approximately 0.70, 1.15, and 1.60 respectively. Between 15 and 20, the Conservative and Balanced tiers remain fully available while the Aggressive tier is restricted only when VIX exceeds 20. At the current reading of 17.95, all entry gates are satisfied, permitting traders to deploy the full spectrum of positions sized to no more than 10 percent of account balance. The RSAi engine, combined with the EDR indicator, generates precise strike selections each trading day at 3:05 PM CST, ensuring the chosen wings reflect current skew and expected daily range. This post-close timing forms the After-Close PDT Shield, allowing non-PDT accounts to participate daily in these one-day-to-expiration setups. The ALVH hedge remains active across all three layers regardless of VIX level, providing the Adaptive Layered VIX Hedge protection that has historically reduced drawdowns by 35 to 40 percent during volatility expansions. In the current contango regime signaled by the Contango Indicator, premium collection remains favorable and the Theta Time Shift mechanism stands ready to handle any threatened positions by rolling forward to capture additional decay without introducing stop losses. The Set and Forget approach means positions are defined at entry with no intraday management required. Recent market action, with SPX closing near 7138.80, has seen five PLACE signals and zero HOLD readings over the past week, reinforcing that current conditions support consistent deployment across tiers. All trading involves substantial risk of loss and is not suitable for all investors. For deeper implementation details including live signal examples and ALVH roll schedules, visit the VixShield resources at vixshield.com.
⚠️ 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 VIX threshold decisions by referencing strict risk-scaling rules rather than discretionary caution. A common perspective holds that VIX readings under 20, particularly when below the five-day moving average, represent an environment where full tier access improves overall expectancy because higher credits from Balanced and Aggressive positions can be harvested safely under the protection of layered VIX hedges. Many note that scaling back prematurely during moderate volatility reduces income potential without meaningfully lowering realized risk, given the daily reset nature of one-day-to-expiration iron condors. Others emphasize the importance of pairing any tier choice with the ALVH framework so that volatility spikes are addressed systematically rather than through position reduction alone. The consensus view rejects binary all-or-nothing thinking, instead favoring the disciplined application of VIX Risk Scaling that keeps Conservative and Balanced tiers active at 17.95 while monitoring for any breach above 20 that would trigger a temporary pause in Aggressive placements.
📖 Glossary Terms Referenced

APA Citation

VixShield Research Team. (2026). With the VIX currently at 17.95 below the 20 threshold, are all three risk tiers still being traded or is there scaling back to more conservative levels?. Ask VixShield. Retrieved from https://www.vixshield.com/ask/with-vix-sitting-at-1795-under-the-20-threshold-are-you-guys-still-trading-all-three-risk-tiers-or-scaling-back

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