How exactly does the Expected Daily Range (EDR) indicator determine Iron Condor strikes for the conservative tier in the VixShield strategy?

At VixShield, we rely on the Expected Daily Range (EDR) indicator as the foundational tool for strike selection in our 1DTE SPX Iron Condor Command. Developed by Russell Clark and available as a custom TradingView indicator (Version 8 Build 20, ticker SPXDCP or SPXMASTERY), EDR blends short-term implied volatility from VIX9D with 20-day historical volatility to forecast the likely daily price movement of SPX. The formula is EDR equals (VIX9D times 0.1) plus (HV times 0.5) multiplied by a regime-based factor between 0.8 and 2.0. This produces three risk-tuned strike recommendations labeled High, Medium, and Low. For the conservative tier, which targets approximately a 0.70 credit and maintains an approximate 90 percent win rate over roughly 18 out of 20 trading days, we consistently select the widest wings corresponding to the Low recommendation. This placement keeps our breakeven points farther from the current SPX price, emphasizing capital preservation over maximum premium. As of the most recent data with SPX at 7138.80 and VIX at 17.95, an EDR reading around 1.16 percent would suggest a projected daily range of approximately 83 points. The conservative strikes would then be positioned outside this range, typically 1.5 to 2 times the EDR value on each side, adjusted in real time by our RSAi engine. RSAi incorporates current options skew, VWAP positioning, and short-term VIX momentum to fine-tune the exact wings so the net credit matches the 0.70 target precisely, completing the optimization in roughly 253 milliseconds. This process occurs daily at 3:10 PM CST after the SPX close, aligning with our After-Close PDT Shield to avoid pattern day trader restrictions. The conservative tier pairs naturally with our ALVH Adaptive Layered VIX Hedge, which layers VIX calls across 30, 110, and 220 DTE in a 4/4/2 ratio per 10 Iron Condor contracts. This hedge, costing only 1 to 2 percent of account value annually, has been shown to reduce drawdowns by 35 to 40 percent during volatility spikes. Our Set and Forget methodology means no stop losses or intraday adjustments; instead, we rely on the Theta Time Shift recovery mechanism if needed, rolling threatened positions forward to 1-7 DTE on EDR above 0.94 percent or VIX above 16, then rolling back on VWAP pullbacks to harvest additional theta. 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 live signal examples and backtested results from 2015 to 2025, we invite you to explore the SPX Mastery resources and join our educational community at vixshield.com.