Did you find this presentation on the PowerX Strategy useful? Leave your questions and comments down below. Recommended Videos: The PowerX Strategy Playlist: th-cam.com/play/PLBa3sAx-Io2l9ZV4s66J-uNkG6AJvhSPB.html The Options Wheel Strategy Playlist: th-cam.com/play/PLBa3sAx-Io2nosgosERUhIZwzvIgD-3Vq.html Options 101 Playlist: th-cam.com/play/PLBa3sAx-Io2m6vWuLNRz4HHUErjO8H6N8.html Options Income Trading Strategies: th-cam.com/play/PLBa3sAx-Io2mybLLdWtbjTFqK9-BR5SJb.html The 5 Biggest Mistakes New Traders Make: th-cam.com/video/DY_0lq_LdQc/w-d-xo.html Generating SRC Profits - Here's How To Do It: th-cam.com/video/FP2x4JULzwU/w-d-xo.html
Thank you!!! Could you give a little talk about how to set these indicators up in the TastyWorks platform, please? There are other options that you did not cover in this software (stochtastic). Thank you again.
This made what was very confusing as a new trader so much clearer. I feel like if I used what was taught in this presentation I could make $$ on a consistent basis.
Question please, i’m confused between the ADR to be used as Stop Loss & using the 2% overall as risk stop loss. Should i exit the trade based on the 2% or ADR? what if they don’t match, let’s say I bought a $10 share and ADR was 0.5, should I put a stop loss at 2% $9.8, or $9.5?
Just wanted to say, I love your channel, love your style of teaching. I have seen a lot of these types of videos, and I keep coming back to yours. Thank you for doing these!
I love your teaching style Markus. Thank you for not being greedy and sharing this with us for free. I’m going to be watching a few more of your videos to get a little more understanding of the markets, than I’m buying whatever you’re offering.
Mathematically, all 3 of those indicators (rsi, stoch, macd) are measuring the same thing, you're just doing different periods. RSI7 is a normalized version of EMA7 (first derivative average), Stoch14/3/3 is a normalized of the EMA3 minus EMA14 (go ahead and program it, you'll find it matches visually), and finally, the MACD12/26/9 is just the conjunction of EMA12 minus EMA26 exponentially averaged over 9...which, technically, is just a long arithmetic form of the more simple EMA6 minus EMA13 (rounded). So what you are technically doing is having EMA3/6/7/13/14 on your chart, and you are looking for them to pretty much be in order (no crossings)....but the EMA3 will always be first to cross any other line, while the EMA14 is the slowest....the 3 is tangled with the 7 on the short scale, and the 14 is tangles with the 3 on the long scale....this means you can cut all of that down to just EMA3/7/14. If 3>7>14, buy trend; if 3
Hi, could you elaborate this a bit more, for somebody who is completely new to this?😅 Do i input these values in a charting software, how do i do it, and what software would you recommend? Thanks so much🙏
@@omgmrtea Most charting software has EMA functionality, any of them will do. It could be under the name "moving average" or "exponential moving average" (EMA is the acronym for it). I prefer TOS because I ca program whatever I want, but that's broker specific. A lot of people use tradingview.
@@elynno9911 I don't use any of these. I am a premium seller making over 120% per year. I pick companies that I like, and that's about it. I use strict math that I've come up with to determine position, I see chart indicators as tarot cards.
@@sabriath I find that this method is great for my day trading. I was using the MA, RSI, MACD but not the STOCHASTIC. It has certainly made a difference in my trades
I am enjoying my book, The PowerX Strategy. I really like how Markus shows to use the SLOW STOCHASTIC alone with RSI and MACD to find a good trade. You do not trade until all three of these are showing an upward trend and then you wait for the price to increase one cent before beginning the trade. This makes a great difference. I tend to trade too early. This one thing has had a tremendous effect on my trading. Thank you Markus
I am glad that you are enjoying and learning. Are you already in our social media spaces? You may reach out to us there when you have questions. Here are the handles FB-facebook.com/markusheitkoetter IG- instagram.com/markusheitkoetter_/
Markus, you are great teacher! I've been trading for a while, learning the hard way. For the first time I get a crystal clear rules in my sights. Last few days I've been binge-watching your videos, and I'd like to buy both of your books. I love your TH-cam channel. Thank you.
Markus you do the best job explaining everything in great detail! Wish there were more people like you on youtube. Keep up the good work, your work is invaluable!
I’ve had a horrible time grasping some concepts. Your stuff is so easy to follow and understand. I also trade the Wheel strategy with a group on Fridays. Two of us found you and started sharing with the group (eg, $20k loss into $6k profit, etc.) Great material all the way around. Looking forward to climbing the value ladder here!
Dear Markus, thank you for everything you have put together to help us in this endeavor. Based on your PowerX strategy, I have created a spreadsheet file calculating it all. After doing a TD paper trading, I have found that, if a stock's ADR is very low, then the number of shares to buy (risk/SL) based on your strategy sometimes suggests that you to buy so many shares that end up using your whole account's total or more, leaving you with no funds to invest in another stock until this investment is realized - either at a gain or a loss. In other words, the shares to buy based on PWX's OR/SL is only worth it if the ADR is consistently high enough. Please let me know if this makes sense? I may be wrong.
Same issue, I try with an entry of 417.6 and an account size of 21,000.00, with an 7.69, I end up that I should buy 55 share but, 55 * 417.6 = 22,968 which is more than the account size.
thank you so much for your videos, I am a beginner thank you again for helping me understand the chart, I'm no longer blind and confused when I see the chart
Well if you're selling a contract you're kind of locked in to the position, so you would have to buy to close for potentially an even bigger loss. In other videos he has said not to panic if the stock drops a bit. I mean, you're making premium by holding onto the stock so if it's staying in that daily range or even dips a bit below that's actually what you want. If buying an options contract I'd assume you would just exercise once your price target is met and would ride out the contract if it isn't met (you can't lose more than the premium anyway).
Regarding position size and total account value: How would a $10,000 account that's risking $200 / trade ever buy 6 shares of TSLA at $850? That's putting up 51% of your $10,000 account. Even buying 500 shares of the $8 stock you discussed gives me the impression you'd risk a large percentage of the account value to make a signal trade...Even with the stop loss in place. I understand the stop loss safety net and how that equates to $200, but it seems like you are a smart, conservative investor. Would you ever tie up close to 50% of your total account value for a single trade? I am an older investor that has a low income and small account...learning, and trying to understand the psychology or comfort level professionals like you develop. Thanks for you videos and this channel.
Hi Markus this is one of the best videos I have seen about trading! well explained, well structured and you even went into the details that makes it for us easier to follow and copy this strategy! Thanks again Markus!
Hi, Marcus, Great video thanks for the information and the strategy. Question, If we are using 1:2 Stop loss - Profit What happens when the bar turns black before we have 2:1 Profit? Do we sell the shares? or we wait for the red bar? or the red bar is only for a short position? Let me know,
Great question. In the book it says you should sell at the first black bar but I’ve found this is often not a good idea as you end up losing money only to see the price rebound on the next bar. So what I’ve found works well is this. If you are in profit, then yes, sell on the first black bar. If your trade is losing money, let it run until the first red bar and exit then or exit when your stop is hit or when your profit target is hit. You’ll find that a lot of stocks that are trending up will rebound from a black bar. You’ll find that a black bar is caused by whipsaws of the RSI above and below the 50 line. Same with the MACD. So hold out until you really do need to get out or you will end up selling on minor pullbacks.
Soooooo educational and helpful basic rules. Life saving and money saving..! I’ve set up my whole trading platform with the mechanicals that I learned from here, Thank you a lot!
I'm wondering if the Stochastics indicator was all that useful, given that the illustration used had an indicator that was lagging behind the RSI but otherwise nearly matched the RSI in direction.
I just found your channel and love your videos! This was super helpful. I have a question about the chart. How do you make the red, green, and black bars appear?
Much appreciated you make it easy for me to learn n especially understand now. So I will start trading bull debit spread on any stocks I can identify in the market. Thanks brother Paul Kamakande Papua New Guinea
Thanks Markus. Priceless lesson. question regarding the indicators: my broker platform (TD Bank) shows 2 Stochastics; one is fast stochastics and the other one is slow. which one I should use? and I appreciate if you briefly explain the difference. Thanks
Great video Markus! This review was awesome and always very useful and helpful. I must say I'm doing well with your strategies and hope to become a Mastermind Member soon! Thanks for all you do for us Markus!
I watched this and loved it, especially regarding the indicators. My question is that when you are trading options, how can you the risk management if the minimum number of shares has to be 100 for the contract? Also can I ask graph you use? Or would any graph have the same on the bottom for your 3 indicators. Thanks Markus!
I am using the Wheel Calculator in my software the PowerX Optimizer. If you want to learn more you may schedule a tour with our expert, Paul. Just reach out to support@rockwelltrading.com and look for Cristy.
Question please, i’m confused between the ADR to be used as Stop Loss & using the 2% overall as risk stop loss. Should i exit the trade based on the 2% or ADR?
Watch came across this video. Great n clear presentation! Wonder anyone has tried this strategy for a period of time? Can share with me what's the successful rate of getting 1:2 profit ratio with the 3 Indicators aligned for entry signal? Appreciate for the fellows feedback
I can not find Stochastic Oscillator - but it lists different labels - Stoch. RSI, Full , fast moving slow moving, sto. momentum etc. Stoc. momentum looks almost identical MACD. Appreciate if you could clarify please.
Excellent video Markus thanks. Brilliant way to trade! you have another video talking of your power X strategy applied on options trading? (With options exemples) But I would say for now that I like a lot the way your are doing the Wheel Strategy. I am practicing on my paper trading account to see how I can apply it the correct way in real account. Cheers
HI Markus, Thank you for the great presentation. I alos bought your book the Power X Strategy. But there is someting different in the video you use 1* ADR for the risk calculation but in the book you suggest to use 1,5* ADR. So I have 2 questions: Which one are you prefering right now and are some other differences between your videos and the book. Thank you :-)
Since Version 2.0 of the PowerX Optimizer, we are using 1.5 and 2.5 for the stop loss and 2.5 to 7.5 for the profit targets, Have you seen the latest version of the software?
Hi Markus. Great video. I ve really been enjoying your content and teaching style. One question... Don't RSI and stochastic measure the same thing? Thanks
Hi Jodi, great question. They are both oscillators, but one of them is measuring the strength of a trend and the other one is trying to identify overbought and oversold situations. In my experience, they complement each other. 👍
I think the video is just showing the principle and uses 1 ADR to simplify the numbers. In reality use either 1.5 ATR or up to 3 ATR’s. 1.5 ATRs works but you will find that you get stopped out 50% of the time. I’ve done quite a lot of backtesting on this with various ATRs and found that 3 ATR’s work better. The total profit is similar but the % of wining trades increases a lot so psychologically it works better and will give you more confidence that the strategy is working. But it’s a personal choice. You might feel more confident following the book exactly. But expect your winning trades to be around 50%, perhaps a bit less. But don’t use 1 ATR as a stop. This is simply too tight, especially for stocks.
@@davidhaylett1810 Thanks very much for taking the time to explain. If I'm understanding you correctly, you prefer a maximum stop-loss factored at 3ATR. If you wouldn't mind, please share what your backtesting resulted in as winning percentage at that level. Thanks Again :-)
I’m using 3 ATR profit target and a 3 ATR stop loss. This does generate a bigger total profit but the main advantage was the higher winning %. So my winning trades were twice as many as my losing trades. So out of 1200 trades across the S&P 500 stocks in one year I was getting around 800 winning trades and 400 losing trades. But my selection criteria include quite a few extras on top of the Power X criteria, essentially to pick out momentum stocks that are rising, No point in trading stocks that have only moved 5% all year so I exclude those type of stocks, etc.
Hey Markus! Huge fan of your videos. I have one question. If you have multiple stocks that fulfill the criteria of first green bar, which you would have more often than not, how do you prioritise which stock to trade?
Hi Gagan, great question: I like to trade up to 5 stocks at the same time, and in the past, there hasn't been a problem selecting these 5 stocks with PowerX Optimizer. I'm mainly checking: "How well would I have done if I had traded this stock according to the rules of the PowerX Strategy over the past 2 years?" And THIS makes my choice very easy. Does this help?
Thanks for your teaching, Markus! I made 170% gain on a day trade today with BIDU that was set up for the PXS. Do you use the Power X strategy on the daily time frame only or does it work on smaller time frames, e.g. 5, 15, or 30 minute?
NICE! I personally use the PowerX Strategy on DAILY charts only, but I have heard from several day traders like you that they use the indicators on a smaller timeframe with very good results. 😀👍
Hello again, Markus! I received your PXS book late last week & read it over the weekend. Very well done! Unfortunately, I’ve bought some trading books that aren’t so well done. Yours is excellent! Question: Do you trade PXS against the overall market? For example, if the overall market is bullish but you see a bearish PXS set up, do you take it or do you look only for stocks moving in the same direction as the SPY, QQQ, & DIA? Thank you!
Marcus! when putting on call options or puts can we use this same stratetgy and how will this affect our profitability since the option pricing does not move in sink the same way? can we simply buy the calls that correspond to the pricing we come up with here or would this not work? thanks much
Very good video. You do "tilt" my math bias by subtracting incorrectly, as a general rule an odd number say 8.11 minus an even number say .40 cents will always give you an odd number, so the answer is 7.71 at 34:39. But this is an unfair nitpick. More substantially I was wondering how setting your stop (loss or gain) to trigger when one of your three indicators moved negative compared to using ADR? (I know this is an old video, but really interested in your content, great job!)
A Great Teacher, even a 10 year old could understand but unless I practice i can't remember it, though it looks so simple. I understand the risk that is too good. I know my target Profit. You have not mentioned time span for the trade. The other parts that are not covered is the what if the price doesn't reach the target price and how to find the right stocks to trade. I just recieved your two free books on The Wheel Strategy and the Powerx strategy hope I find infprmation in there. If I want to trade the indian market would your software works for those markets?
Hi Shanker, the software works for US and Canadian stocks as of the moment. We are continuously updating it to suit the international market in the near future. I am glad that you are learning from my books! ;)
Hi Markus, I have subscribed this channel today I watch few videos also, I feel it's really useful, but I have a question, can it be used in day/Intraday trading?
Hi Vinod, I personally only use it for end-of-day, but I have head from some traders that they use it on 5min and 15 min charts. Thanks for subscribing! 😀👍
Hi Markus! Great video as always. In my Power X Strategy book. It says to set the stop loss at 1.5 * SDR and profit target at 3 * SDR. I see you are recommending 1 and 2 respectively now. Is there a reason for the change? Thanks 👍
When trading the PowerX Strategy, you are BUYING calls and puts. Therefore, they are automatically "cash secured". And yes, you can use debit spreads with the PowerX Strategy. Does this help? 😀
@@rockwelltradingservices I don't like buying, will the power X works for selling, is it a system that tells you when stocks are overbought and oversold?
Can someone tell me the Chart type used here? I am unable to find out what it is! Area + *** What type bar chart give red, green and black sticks? Thanks in advance.
You need to use a line, not a candle or a bar. Then go into the line setup and turn down its visibility so that it cannot be seen. Then apply the ‘Power X’ indicator by Rockwell. This indicator gives you the coloured bars.
The ‘Power X’ indicator is a custom indicator produced by Rockwell. It’s available free on Tradingview charts so you can add it to your charts. You must do this if you want to get the coloured bars.
Very nice presentation, Markus! Gratuliere! Can you share with us which charting program are you using? It doesn't seem to me that you are using your trading platform.
Hi Steve! Are you referring to the PowerX Optimizer? Would you like to learn more? Reach out to our social media channels. Facebook- facebook.com/markusheitkoetter Instagram- instagram.com/markusheitkoetter_/
This strategy is specifically for stocks and options. Markus believes that FOREX trading is a scam. The problem is that that FOREX has no exchange where you can trade so your broker is taking the other side of your trades. You lose, your broker wins. The other problem with FOREX is that the value of currency pairs are manipulated by the banks to take out your stops. Currency has no intrinsic value so indicators like RSI and many others that were designed for stocks and commodities are meaningless. The vast majority of scam brokers are FOREX brokers because they know it’s easy to cheat FOREX traders. Do yourself a massive favour and stay away from FOREX if you want to be successful.
Did you find this presentation on the PowerX Strategy useful? Leave your questions and comments down below.
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Thank you!!! Could you give a little talk about how to set these indicators up in the TastyWorks platform, please? There are other options that you did not cover in this software (stochtastic). Thank you again.
Hey did you grow your hair out cause you're a savior?
Excellent
This made what was very confusing as a new trader so much clearer. I feel like if I used what was taught in this presentation I could make $$ on a consistent basis.
Question please, i’m confused between the ADR to be used as Stop Loss & using the 2% overall as risk stop loss. Should i exit the trade based on the 2% or ADR?
what if they don’t match, let’s say I bought a $10 share and ADR was 0.5, should I put a stop loss at 2% $9.8, or $9.5?
Just wanted to say, I love your channel, love your style of teaching. I have seen a lot of these types of videos, and I keep coming back to yours. Thank you for doing these!
Hi David Rizzo, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
@@rockwelltradingservices aaas
I love your teaching style Markus. Thank you for not being greedy and sharing this with us for free. I’m going to be watching a few more of your videos to get a little more understanding of the markets, than I’m buying whatever you’re offering.
You are welcome! I am glad that this helps! :)
Marcus Thank you for a clear & precise presentation.. Easy to understand. You did an excellent job.
Thank you!
Mathematically, all 3 of those indicators (rsi, stoch, macd) are measuring the same thing, you're just doing different periods. RSI7 is a normalized version of EMA7 (first derivative average), Stoch14/3/3 is a normalized of the EMA3 minus EMA14 (go ahead and program it, you'll find it matches visually), and finally, the MACD12/26/9 is just the conjunction of EMA12 minus EMA26 exponentially averaged over 9...which, technically, is just a long arithmetic form of the more simple EMA6 minus EMA13 (rounded).
So what you are technically doing is having EMA3/6/7/13/14 on your chart, and you are looking for them to pretty much be in order (no crossings)....but the EMA3 will always be first to cross any other line, while the EMA14 is the slowest....the 3 is tangled with the 7 on the short scale, and the 14 is tangles with the 3 on the long scale....this means you can cut all of that down to just EMA3/7/14. If 3>7>14, buy trend; if 3
Hi, could you elaborate this a bit more, for somebody who is completely new to this?😅 Do i input these values in a charting software, how do i do it, and what software would you recommend? Thanks so much🙏
@@omgmrtea Most charting software has EMA functionality, any of them will do. It could be under the name "moving average" or "exponential moving average" (EMA is the acronym for it).
I prefer TOS because I ca program whatever I want, but that's broker specific. A lot of people use tradingview.
Wow thats even simplify our work.
Anyways, does that work? You tried that out?
@@elynno9911 I don't use any of these. I am a premium seller making over 120% per year. I pick companies that I like, and that's about it. I use strict math that I've come up with to determine position, I see chart indicators as tarot cards.
@@sabriath I find that this method is great for my day trading. I was using the MA, RSI, MACD but not the STOCHASTIC. It has certainly made a difference in my trades
I am enjoying my book, The PowerX Strategy. I really like how Markus shows to use the SLOW STOCHASTIC alone with RSI and MACD to find a good trade. You do not trade until all three of these are showing an upward trend and then you wait for the price to increase one cent before beginning the trade. This makes a great difference. I tend to trade too early. This one thing has had a tremendous effect on my trading. Thank you Markus
I am glad that you are enjoying and learning. Are you already in our social media spaces? You may reach out to us there when you have questions. Here are the handles
FB-facebook.com/markusheitkoetter
IG- instagram.com/markusheitkoetter_/
Markus, you are great teacher! I've been trading for a while, learning the hard way. For the first time I get a crystal clear rules in my sights. Last few days I've been binge-watching your videos, and I'd like to buy both of your books. I love your TH-cam channel. Thank you.
That is awesome! Here is the link to the bundle bit.ly/49pGuEp
Thank you Markus for the helpful video.
You are welcome! I am glad this helps.
Markus you do the best job explaining everything in great detail! Wish there were more people like you on youtube. Keep up the good work, your work is invaluable!
Thank you for your support, Replica! :)
I’ve had a horrible time grasping some concepts. Your stuff is so easy to follow and understand.
I also trade the Wheel strategy with a group on Fridays. Two of us found you and started sharing with the group (eg, $20k loss into $6k profit, etc.) Great material all the way around.
Looking forward to climbing the value ladder here!
That is awesome! Let me know how it goes for you guys! ;)
Very clear and understandable presentation and removes emotion from trading activity! More More! I am 3 mnths into trading. Eating it up!
Dear Markus, thank you for everything you have put together to help us in this endeavor.
Based on your PowerX strategy, I have created a spreadsheet file calculating it all. After doing a TD paper trading, I have found that, if a stock's ADR is very low, then the number of shares to buy (risk/SL) based on your strategy sometimes suggests that you to
buy so many shares that end up using your whole account's total or more, leaving you with no funds to invest in another stock until this investment is realized - either at a gain or a loss.
In other words, the shares to buy based on PWX's OR/SL is only worth it if the ADR is consistently high enough. Please let me know if this makes sense? I may be wrong.
Same issue, I try with an entry of 417.6 and an account size of 21,000.00, with an 7.69, I end up that I should buy 55 share but, 55 * 417.6 = 22,968 which is more than the account size.
Excellent. Very good teacher. Intro, content demo, and summary.
Awesome! Thank you for watching! :)
👏🏾👏🏾👏🏾👏🏾👌🏾 as a beginner trader this advise is golden , I will paper trade first and learn to sit on my hands ☺️
I am glad that this helps! :)
thank you so much for your videos, I am a beginner thank you again for helping me understand the chart, I'm no longer blind and confused when I see the chart
Awesome! Thank you for watching! :)
Thanks Markus for this video, very easy to understand and concise. i will be applying this as a newbie. Thanks
again you are God sent.
That is awesome! ;)
Excellent teaching style and easy to follow strategy. Highly recommend this tutor.
Thank you! ;)
Thanks, best introduction to practical trading I have found on TH-cam. Thanks so much!
Hi James Welsh, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Thanks a lot for sharing a great yet simple methodology for trading.
You are welcome! ;)
Great presentation. Can we use ADR stop-loss for options, like you explained in the video? or it is only for stocks? Thanks.
Well if you're selling a contract you're kind of locked in to the position, so you would have to buy to close for potentially an even bigger loss. In other videos he has said not to panic if the stock drops a bit. I mean, you're making premium by holding onto the stock so if it's staying in that daily range or even dips a bit below that's actually what you want. If buying an options contract I'd assume you would just exercise once your price target is met and would ride out the contract if it isn't met (you can't lose more than the premium anyway).
Regarding position size and total account value:
How would a $10,000 account that's risking $200 / trade ever buy 6 shares of TSLA at $850? That's putting up 51% of your $10,000 account. Even buying 500 shares of the $8 stock you discussed gives me the impression you'd risk a large percentage of the account value to make a signal trade...Even with the stop loss in place.
I understand the stop loss safety net and how that equates to $200, but it seems like you are a smart, conservative investor. Would you ever tie up close to 50% of your total account value for a single trade?
I am an older investor that has a low income and small account...learning, and trying to understand the psychology or comfort level professionals like you develop.
Thanks for you videos and this channel.
I feel like I got a financial college education all wrapped up in an hour. Thank you so very much!
😊 You are welcome! I am glad that this helps!
Wonderful presentation for new viewers and great refresher for members of PXO. Thanks for sharing.
Hi Tom Morrow, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Thank you for your sharing! It seems that those indicators little bit lag from both entry and exit. What can we do on this lag problem?
Hi Markus this is one of the best videos I have seen about trading! well explained, well structured and you even went into the details that makes it for us easier to follow and copy this strategy! Thanks again Markus!
I am glad that you like this mike ballast. ;) What do you like about my strategy?
Excellent! Thank you , Markus!
You are welcome! I hope this helps.
Your videos always answer every question I ever have, your such a great teacher and I send many blessings your way!! Your a godsend!
Hi laura BOTELLO, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
I just bought both your books in description for $10, looking forward to reading them.
That is awesome! Please let me know when you are done reading the books. 😊
Excellent Presentation Markus. Thank you.
😊 You are welcome! I am glad that this helps!
Hi, Marcus,
Great video thanks for the information and the strategy.
Question,
If we are using 1:2 Stop loss - Profit
What happens when the bar turns black before we have 2:1 Profit? Do we sell the shares? or we wait for the red bar?
or the red bar is only for a short position?
Let me know,
Great question. In the book it says you should sell at the first black bar but I’ve found this is often not a good idea as you end up losing money only to see the price rebound on the next bar.
So what I’ve found works well is this. If you are in profit, then yes, sell on the first black bar. If your trade is losing money, let it run until the first red bar and exit then or exit when your stop is hit or when your profit target is hit. You’ll find that a lot of stocks that are trending up will rebound from a black bar. You’ll find that a black bar is caused by whipsaws of the RSI above and below the 50 line. Same with the MACD. So hold out until you really do need to get out or you will end up selling on minor pullbacks.
Soooooo educational and helpful basic rules. Life saving and money saving..! I’ve set up my whole trading platform with the mechanicals that I learned from here, Thank you a lot!
😊 You are welcome! I am glad that this helps!
I'm wondering if the Stochastics indicator was all that useful, given that the illustration used had an indicator that was lagging behind the RSI but otherwise nearly matched the RSI in direction.
By far my favorite strategy yet! Very straight forward I can't wait to try it out
Thank you! :)
Very simple and clear!!!
Thank you! ;)
The book is great. I really enjoyed this video. Thank you!
You are welcome, Larry. I am glad that you like the book! ;)
Thank you Markus.
You are welcome! I hope this helps.
this information you give us is golden . thanks
😊 You are welcome! I am glad that this helps!
Thank you Markus. Your presentation clearly illustrated that part in The Power X Strategy book. I get it now.
Hi Pete M, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Excellent presentation. You are a good trainer
Thank you! :)
I have the book and it's very thorough. Great presentation. Thank you
😊 You are welcome! I am glad that you got the book. Enjoy learning.
Very clear presentation no doubt you are a good educator, thank you very much Markus !! I'm still reading the book.
Hi Edgar Leon Sr, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Would really like to see a Monte Carlo simulation running with your strategy and parameters
Really appreciate your overall energy 🙂
How would you apply this to an options example in terms of the price of a contract?
Thanks Markus. Just a question; when we check 3 indicators, we should look it in what time frame? Day, week , month or doesn’t even matter?
I just found your channel and love your videos! This was super helpful. I have a question about the chart. How do you make the red, green, and black bars appear?
Great presentation!
Thank you! ;)
Much appreciated you make it easy for me to learn n especially understand now. So I will start trading bull debit spread on any stocks I can identify in the market.
Thanks brother
Paul Kamakande
Papua New Guinea
Awesome! Thank you, Paul. Have you watched my other video?
Thanks Markus. Priceless lesson. question regarding the indicators: my broker platform (TD Bank) shows 2 Stochastics; one is fast stochastics and the other one is slow. which one I should use? and I appreciate if you briefly explain the difference. Thanks
thank you for a wonderful info, can't wait for my scheduled app with your team
Awesome! Thank you! :)
Great presentation Markus! Thank you.
Hi Francesco Pipino, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Great video. Thank you
Great video Markus! This review was awesome and always very useful and helpful. I must say I'm doing well with your strategies and hope to become a Mastermind Member soon! Thanks for all you do for us Markus!
That is awesome, Super Dave. I am happy to read success stories like this. :)
Another spectacular video! Thank you Markus!
You are welcome! I am glad that this helps! :)
Fantastic Presentation!
Awesome! Thank you for watching! :)
Amazing video 👏👏👏
Thank you!
Very Informative ,I would love to try the Powerx Strategy software and is on my radar to do things .Just waiting for the right time
Awesome! Thank you for watching! :)
Sei molto simpatico e il tuo inglese lo capisco bene. complimenti.
Thank you! ;)
I watched this and loved it, especially regarding the indicators. My question is that when you are trading options, how can you the risk management if the minimum number of shares has to be 100 for the contract? Also can I ask graph you use? Or would any graph have the same on the bottom for your 3 indicators. Thanks Markus!
I am using the Wheel Calculator in my software the PowerX Optimizer. If you want to learn more you may schedule a tour with our expert, Paul. Just reach out to support@rockwelltrading.com and look for Cristy.
Question please, i’m confused between the ADR to be used as Stop Loss & using the 2% overall as risk stop loss. Should i exit the trade based on the 2% or ADR?
what if they don’t match, let’s say I bought a $10 share and ADR was 0.5, should I put a stop loss at 2% $9.8, or $9.5?
I liked your explanation very much.... thanks....
😊 You are welcome! I am glad that this helps!
Amazing video .
Thank you!
Watch came across this video. Great n clear presentation!
Wonder anyone has tried this strategy for a period of time? Can share with me what's the successful rate of getting 1:2 profit ratio with the 3 Indicators aligned for entry signal?
Appreciate for the fellows feedback
Thanks for your strategy. The stochastic has two lines %K %D. You only show one line. Which one should we use?
I can not find Stochastic Oscillator - but it lists different labels - Stoch. RSI, Full , fast moving slow moving, sto. momentum etc.
Stoc. momentum looks almost identical MACD. Appreciate if you could clarify please.
Excellent video Markus thanks. Brilliant way to trade!
you have another video talking of your power X strategy applied on options trading? (With options exemples)
But I would say for now that I like a lot the way your are doing the Wheel Strategy. I am practicing on my paper trading account to see how I can apply it the correct way in real account.
Cheers
Awesome! Thank you for that feedback. 😊
HI Markus,
Thank you for the great presentation. I alos bought your book the Power X Strategy. But there is someting different in the video you use 1* ADR for the risk calculation but in the book you suggest to use 1,5* ADR. So I have 2 questions: Which one are you prefering right now and are some other differences between your videos and the book.
Thank you :-)
Since Version 2.0 of the PowerX Optimizer, we are using 1.5 and 2.5 for the stop loss and 2.5 to 7.5 for the profit targets, Have you seen the latest version of the software?
Hi Markus. Great video. I ve really been enjoying your content and teaching style. One question... Don't RSI and stochastic measure the same thing? Thanks
Hi Jodi, great question. They are both oscillators, but one of them is measuring the strength of a trend and the other one is trying to identify overbought and oversold situations. In my experience, they complement each other. 👍
The wheel is just brilliant. Just getting into this video though
Awesome! Thank you for watching! :)
Where does the ADR come from and how to set up?
Very informative indeed! Thank you
Hi Muhammad Zafran bin Naharrudin, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Your book recommends 1.5 x ADR for the risk, but this video has changed to 1 x ADR. Can you explain the reasoning behind the change, please? -Thx!
I am also curious about this!
I think the video is just showing the principle and uses 1 ADR to simplify the numbers. In reality use either 1.5 ATR or up to 3 ATR’s. 1.5 ATRs works but you will find that you get stopped out 50% of the time.
I’ve done quite a lot of backtesting on this with various ATRs and found that 3 ATR’s work better. The total profit is similar but the % of wining trades increases a lot so psychologically it works better and will give you more confidence that the strategy is working. But it’s a personal choice. You might feel more confident following the book exactly. But expect your winning trades to be around 50%, perhaps a bit less.
But don’t use 1 ATR as a stop. This is simply too tight, especially for stocks.
@@davidhaylett1810 Thanks very much for taking the time to explain. If I'm understanding you correctly, you prefer a maximum stop-loss factored at 3ATR. If you wouldn't mind, please share what your backtesting resulted in as winning percentage at that level. Thanks Again :-)
@@davidhaylett1810 Also, are you still going with a 2:1 target Ratio when using 3ATR as the stop-loss? Thx!
I’m using 3 ATR profit target and a 3 ATR stop loss. This does generate a bigger total profit but the main advantage was the higher winning %. So my winning trades were twice as many as my losing trades. So out of 1200 trades across the S&P 500 stocks in one year I was getting around 800 winning trades and 400 losing trades. But my selection criteria include quite a few extras on top of the Power X criteria, essentially to pick out momentum stocks that are rising, No point in trading stocks that have only moved 5% all year so I exclude those type of stocks, etc.
My stoch indicator on tradingview has two lines. A blue line and an Orange one.. Please advice
Great info. Thanks Markus 👍
Hi Jimmy James, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Hey Markus! Huge fan of your videos. I have one question.
If you have multiple stocks that fulfill the criteria of first green bar, which you would have more often than not, how do you prioritise which stock to trade?
Hi Gagan, great question: I like to trade up to 5 stocks at the same time, and in the past, there hasn't been a problem selecting these 5 stocks with PowerX Optimizer. I'm mainly checking: "How well would I have done if I had traded this stock according to the rules of the PowerX Strategy over the past 2 years?" And THIS makes my choice very easy. Does this help?
Amazing explanation. Still trying to understand where do I find this charts.
You are welcome! I am glad that this helps! :)
Good job sir 👍🏻
Thank you! 😊
Thanks for your teaching, Markus! I made 170% gain on a day trade today with BIDU that was set up for the PXS. Do you use the Power X strategy on the daily time frame only or does it work on smaller time frames, e.g. 5, 15, or 30 minute?
NICE! I personally use the PowerX Strategy on DAILY charts only, but I have heard from several day traders like you that they use the indicators on a smaller timeframe with very good results. 😀👍
@@rockwelltradingservices Sounds good! I'll study it and see. I typically swing trade but I like to day trade on my day off.
Awesome! Thank you for watching! :)
Hello again, Markus! I received your PXS book late last week & read it over the weekend. Very well done! Unfortunately, I’ve bought some trading books that aren’t so well done. Yours is excellent! Question: Do you trade PXS against the overall market? For example, if the overall market is bullish but you see a bearish PXS set up, do you take it or do you look only for stocks moving in the same direction as the SPY, QQQ, & DIA? Thank you!
Marcus! when putting on call options or puts can we use this same stratetgy and how will this affect our profitability since the option pricing does not move in sink the same way? can we simply buy the calls that correspond to the pricing we come up with here or would this not work? thanks much
Hi Mark, YES, exactly: Instead of just buying the stock, you can simply buy a CALL option. 👍
@@rockwelltradingservices thanks so much for your videos they are topps! The value is big time intrinsic like an option that goes my way!!!!
LOL - Thanks! Love the analogy 😎
Thank you for making these great videos. I love your channel.
You are welcome! I am glad that this helps! :)
Always helpful Markus
Hi Wes Guild, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Hi. This seems to be best used for day trading, correct?
Hi Doug, I'm using it on DAILY charts, i.e. for SWING TRADING. Does this help?
Very good video. You do "tilt" my math bias by subtracting incorrectly, as a general rule an odd number say 8.11 minus an even number say .40 cents will always give you an odd number, so the answer is 7.71 at 34:39. But this is an unfair nitpick. More substantially I was wondering how setting your stop (loss or gain) to trigger when one of your three indicators moved negative compared to using ADR? (I know this is an old video, but really interested in your content, great job!)
Use margin account
A Great Teacher, even a 10 year old could understand but unless I practice i can't remember it, though it looks so simple. I understand the risk that is too good. I know my target Profit. You have not mentioned time span for the trade. The other parts that are not covered is the what if the price doesn't reach the target price and how to find the right stocks to trade. I just recieved your two free books on The Wheel Strategy and the Powerx strategy hope I find infprmation in there. If I want to trade the indian market would your software works for those markets?
Hi Shanker, the software works for US and Canadian stocks as of the moment. We are continuously updating it to suit the international market in the near future. I am glad that you are learning from my books! ;)
Fantastic video. You did awesome job to explain it super easy👏👏👏
I couldn’t find ADR chart? Does it have any other name?
ATR
Bobby Brown thanks! I checked ATR as well. It shows a range but what Markus referred to what an exact figure for each trading day
Thank Your very clear and understandable
Hi Farhad Rafiepour, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
What is the best time for result ?
And is this strategy work in short time like one minute or five minutes ?
I heard of traders who trade this strategy on 15 mina nd 60 min charts. I personally trade it on DAILY charts.
Great episode
Hi This IsFootball, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍
Thank you!
😊 You are welcome! I am glad that this helps!
Hi Markus, I have subscribed this channel today I watch few videos also, I feel it's really useful, but I have a question, can it be used in day/Intraday trading?
Hi Vinod, I personally only use it for end-of-day, but I have head from some traders that they use it on 5min and 15 min charts.
Thanks for subscribing! 😀👍
Hi Markus! Great video as always. In my Power X Strategy book. It says to set the stop loss at 1.5 * SDR and profit target at 3 * SDR. I see you are recommending 1 and 2 respectively now. Is there a reason for the change? Thanks 👍
This video is a very good summary of the book; there is still a difference with the coefficient for stop loss : a change in the strategy?
The examples for Power X are all for naked puts and calls, am I correct? Can the Power X be used for credit spreads?
When trading the PowerX Strategy, you are BUYING calls and puts. Therefore, they are automatically "cash secured". And yes, you can use debit spreads with the PowerX Strategy. Does this help? 😀
@@rockwelltradingservices I don't like buying, will the power X works for selling, is it a system that tells you when stocks are overbought and oversold?
Yes, you can change the settings to "SHORT ONLY". This will show you all the stocks that are more likely to go down. Does this help? 😀👍
@@rockwelltradingservices Ok thanks
@@rockwelltradingservices Thank you.
Thanks.
You are welcome! I am glad that this helps! :)
Can someone tell me the Chart type used here? I am unable to find out what it is! Area + *** What type bar chart give red, green and black sticks?
Thanks in advance.
I was wondering the same thing.
You need to use a line, not a candle or a bar. Then go into the line setup and turn down its visibility so that it cannot be seen. Then apply the ‘Power X’ indicator by Rockwell. This indicator gives you the coloured bars.
@@davidhaylett1810 is he running his proprietary software on this presentation? Not sure what you mean by applying the PowerX indicator
The ‘Power X’ indicator is a custom indicator produced by Rockwell. It’s available free on Tradingview charts so you can add it to your charts. You must do this if you want to get the coloured bars.
... great stuff...
Awesome! Thank you for watching! :)
Good hallp video sir technically 🎉🎉🎉🎉
Thank you!
@@rockwelltradingservices sir time frame chate 5 15 meant
Sir stage bar time frame yous ane bade plaze
Does it work with option ?
I use The Wheel Options Trading strategy for options. This strategy is also integrated in our software.
Very nice presentation, Markus! Gratuliere! Can you share with us which charting program are you using? It doesn't seem to me that you are using your trading platform.
The charting platform that I am using is TradingView: bit.ly/2The5LI
@@rockwelltradingservices Thank you, Markus!
what is the software he is currently using to look at the charts?
Hi Steve! Are you referring to the PowerX Optimizer? Would you like to learn more? Reach out to our social media channels.
Facebook- facebook.com/markusheitkoetter
Instagram- instagram.com/markusheitkoetter_/
Unfortunately, you would have lost with the TSLA trade... easy to say in hindsight on Feb. 3rd!
HI Markus, Do you have any presentation on Forex trading?
This strategy is specifically for stocks and options. Markus believes that FOREX trading is a scam. The problem is that that FOREX has no exchange where you can trade so your broker is taking the other side of your trades. You lose, your broker wins. The other problem with FOREX is that the value of currency pairs are manipulated by the banks to take out your stops. Currency has no intrinsic value so indicators like RSI and many others that were designed for stocks and commodities are meaningless. The vast majority of scam brokers are FOREX brokers because they know it’s easy to cheat FOREX traders. Do yourself a massive favour and stay away from FOREX if you want to be successful.