I have been looking for a good alternative to shaving cream for a while now. My favorite shaving foam was discontinued a couple of years ago, and since then, I have been searching for a solution to my problem. My skin becomes very red, irritated and itchy after I shave it. No matter how much lotion I apply, it is dry. My legs are especially a problem: ashy skin with red spots all over where ingrown hairs are.
Following a friend's recommendation, I started using liquid glycerin soap but that was still not helping. I decided to experiment with it and added a bit of olive oil and some Vitamin E that I had in the cabinet. I don't have exact measures, I pour a bit of both into the bottle of glycerin soap. This combination does miracles to my skin. It feels a bit oily but mixed with soap, you don't notice it and the razor moves smoothly over the skin without breaking it or irritating it.
This seems like a really good solution to your problem. There are a few different recipes that can substitute a store bought shaving cream and you are on track - they all contain some kind of moisturizing oil in them. In your recipe, olive oil offers a hint of moisture while vitamin E does the same plus adds antioxidant properties.
Glycerin locks in moisture applied to skin. Used on all skin types, it is considered to be hypo allergenic although it is recommended you do a patch test (on inside of your arm) to make sure it does not cause any adverse skin reactions.
One of the recipes that is somewhat similar to yours comes from Planet Green and calls for mixture of sunflower oil and glycerin soap.
If your skin is experiencing irritation, adding chamomile or lavender oil might help as they both are calming oils. You could also add some aloe vera gel to help soothe the skin and prevent redness and itching. If you continue to have problems with ingrown hairs, you might want to try applying some of the tips mentioned here.