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The Powerx Strategy: Companion Guide

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THE POWERX STRATEGY

COMPANION GUIDE
Dear Friend,

Welcome to Rockwell Trading!


I'm so glad you're here.

By reading The PowerX Strategy


and downloading this guide, you've
taken critical first steps to own your
future.

You know you need a change.

You're tired of the 9 to 5 grind.


You're ready to take control of your
day and your destiny.

No one gets that more than me.

There's never been a better time


than right now to dive into trading.

Our financial markets are on the


brink of failure, and Social Security
is a bullet train speeding towards
certain disaster.

And who's supporting the little


guys? Certainly not Wall Street
and certainly not the big banks.

Your only option? Take control of


your financial future just like I did.

Welcome to your future!

1
COMPANY HISTORY
Rated A+

In 2002, Markus Heitkoetter arrived in the U.S. from


Germany with $30,000 in his pocket, having quit his job as
a director at IBM to pursue a career as a trader.

Once in the U.S., Markus began evolving his trading career, working from
home and living the trader’s lifestyle. Anyone he talked to about his work
was intrigued, and many confessed that they, too, wanted to work from
home and, more importantly, work for themselves. Markus was quick to
invite anyone and everyone to his home office to show them exactly what he
did day after day—in his mind, showing was always better than, simply,
telling.

What Markus didn’t expect? That visitors would eagerly tell their friends.
By 2005, just three years after he arrived in the U.S., Markus was no longer
the unknown trader-to-be. Instead he was trading full time and taking his
first steps to establish his trading eductation business. Markus designed a
system capable of teaching anyone how to trade in only 15 minutes a day. His
strategies and software were simple, strategic and completely streamlined
—and, more importantly, they worked.

Today, over 461,752 people in 196 countries have downloaded Markus’


book, "The Complete Guide to Day Trading" as a first step in their journey
to lasting financial freedom. His next book, "The Simple Strategy,"
has remained the #1 best selling book in its category for more than four
years, a testament to the power of Markus’ unique approach to trading.

Seen on many top financial education platforms including NBC, CBS, FOX,
ABC, Rockwell is also a proud member of the Better Business Bureau and has
maintained an A+ rating for many years.

2
LIVE EVENTS
ROCKWELL LIVE TRADING EVENTS
Experience the very best of Rockwell at our live events. Designed for traders who
want to upgrade their skills while learning new strategies to grow their accounts
systematically and sustainably, this transformative and fully immersive
weekend will give you the clarity and confidence you need to take your trading to
the next level—and beyond.

Through these targeted, high energy, high intensity trainings, you’ll create
critical alignment between you, your trading and your money management, so you can
build a trading account that truly provides for you and your family. By positioning you
and your fellow traders within an intimate, highly focused setting, you can play out and
be 100% focused 100% of the time.

• Learn Rockwell’s core, proven trading strategies to help be better positioned in any
market condition
• Find the best, lowest-risk option trades with high profit potential
• Discover the secret to trading in just five minutes per day, plus an effective strategy
for binary options that uses five-year probabilities to put the odds in your favor
• Choose the right money management approach—the approach that best aligns
with you and your goals
• Cut through the clutter and the chaos to eliminate the stress and overwhelm that’s
holding you back

“ I just wanted to drop a line to say thank you for a great couple of days. I
thoroughly enjoyed the Houston Trading Event...I’ve probably been to a
dozen or so trading seminars hosted by shameless snake-oil salesmen
that only have one agenda. You certainly don’t fit into that group. Thank
you for your honesty and genuine interest in your students. I look
forward to your next event.”
— Mark Finsen

3 FIND AN EVENT NEAR YOU AT HTTPS://BOOTCAMP.ROCKWELLTRADING.COM


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COLOR CHARTS COMPANION
Pg. 47>>>​ ​When you load a chart of a symbol, it might look like THIS:

But if you traded this stock according to the PowerX Strategy, you could
have made 61.2%. ​Here’s how…

FIRST, we need to change the chart to a so-called “OHLC Chart.”

5
When we switch our chart to a bar chart, it looks like this:

Now it’s time to add our indicators.

Pg. 48>>>​ INDICATOR 1: SLOW STOCHASTIC (STOCHASTIC %K)


​ 4 and 3 ​to our chart.
We add Stochastic %K with a parameter of 1
Stochastic K is an oscillator that moves between 0 and 100. We want to pay close attention
to the 50 line (marked in blue in the chart).

6
Pg. 49>>>​ ​Whenever the Stochastic %K is ABOVE 50, it’s indicating that the stock is in
an uptrend (see below).

Pg. 50>>>​ ​And when the Stochastic %K is BELOW 50, it’s indicating that the
stock is in a downtrend (see below).

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Pg. 51>>>​ ​INDICATOR 2: RELATIVE STRENGTH INDEX (RSI)
The next indicator is the Relative Strength Index (RSI), and we are using a setting of 7.
Same as Stochastic %K, the RSI Indicator oscillates between 0 and 100.

Pg. 52>>>​ ​Again we want to pay attention to the 50 line. When the RSI is
ABOVE 50, it’s indicating that the stock is in an uptrend (see below).

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When the RSI is BELOW 50, it’s indicating the stock is in a downtrend (see below).

Pg. 53>>>​ ​INDICATOR 3: MOVING AVERAGE CONVERGENCE DIVERGENCE


The third indicator that we want to add to the chart is the Moving Average Convergence
Divergence (MACD). We use the settings of​ MACD (12, 26, 9).

9
Pg. 54>>>​ ​When the MACD is ABOVE its Signal Line, it’s indicating that the stock
is in an uptrend.

When the MACD is BELOW its Signal Line, it’s indicating that the stock is in a
downtrend.

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Pg. 55>>>​ ​Now let’s bring this all together.​ In the chart below you’ll see all
indicators together:

● When ​all three​ indicators are “green”, the stock is in an uptrend.


● When a​ ll three​ indicators are “red”, the stock is in a downtrend.

I personally like to make this even easier to see, and here’s how:

● When all three indicators are green, I color the bars in the chart green.
● When all three indicators are red, I color the bars in the chart red.
● When only 1 or 2 indicators are green or red, i.e. not all three, then I color the
bars in the chart black.

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Pg. 56>>>​ ​This makes it VERY easy for me to see when a stock is in an uptrend
(green bars), when it is in a downtrend (red bars), and when it is only moving
sideways (black bars).

With these settings, you can now determine in five seconds or less, whether a
stock is in an uptrend or a downtrend. Just look at the previous image.

SO…is this stock in an uptrend or in a downtrend?

● The Stochastic %K is at 88.3, i.e. ABOVE 50


● The RSI is at 69.06, i.e. ABOVE 50
● The MACD is above its Signal Line

Since all three indicators are showing an uptrend, this stock is in an uptrend
right now.

Easy enough, isn’t it?

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PART 2: WHEN TO ENTER A TRADE
Pg. 58>>>​ ​#1. We want to BUY a stock $0.01 ​above the high​ of the bar on
which all three indicators are green, i.e. the first green bar.

The high of the first green bar is at $8.35, therefore we want to BUY $0.01 above
that high at $8.36. As you can see, we’re getting filled on the next day.
Pg. 59>>>​ ​Here’s another example:

The high of the first green bar is at $7.25, therefore we want to BUY $0.01 above
13 that high at $7.26.
Pg. 60>>>​ ​Here’s an example where we don’t get filled right away:

The high of the first green bar is at $7.30, therefore we want to BUY $0.01 above
that high at $7.31.

But for the next three days, the stock doesn’t move above $7.30. But since the bars
are still green—in other words, all three indicators are still signaling BUY—we leave
the order in the market. On the 4th day after the signal occurred, the stock finally
moves higher and we get filled.

IMPORTANT:​ If we had gotten a BLACK bar, we would have canceled the order
and waited for the next green bar.

If you want to SHORT a stock, you can use the same logic to SELL a stock:

We want to SELL a stock $0.01 ​below the low​ of the bar on which all three
indicators are red—in other words, below the first red bar.

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Pg. 61>>>​ ​Here’s an example:

The low of the first red bar is at $8.50, therefore we want to SELL $0.01 below that low
at $8.49.

Pg. 62>>>​ ​A few weeks later, we get another signal:

The low of the first red bar is at $8.50, therefore we want to SELL $0.01 below that low
at $8.49.

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Pg. 63>>>​ ​There are two more SHORT signals. Take a look at the image below:

Pg. 64>>>​ ​So in total, we get seven trading signals:


● Four BUY Signals and
● Three SELL SHORT Signals, if you like to SELL stocks

Here are all the signals in one chart—note, GREEN triangles are BUY signals and
RED triangles are SELL signals.

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PART 3: WHEN TO EXIT A TRADE

EXIT 1: STOP LOSSES


A stop loss limits your risk by getting you out of a trade if it’s moving against you. THIS is the
difference between successful traders and unsuccessful traders.

Successful traders use stop losses and liquidate their positions with a small loss
if the trade goes against them.

Average Daily Range (ADR) = Moving Average (High of Daily - Low of Daily, 7)

Pg. 67>>>​ ​In the example below, the ​Average Daily Range ​is $0.42:

For my stop loss, I like to use 1.5 times the Average Daily Range:

Stop Loss = Average Daily Range * 1.5

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Pg. 68>>>​ ​In this example, the stop loss is $0.42 * 1.5 = $0.63.

When we enter the trade at $8.36, we simply subtract $0.63 from our entry and
place our stop loss at $7.73.

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Pg. 69>>>​ ​Here’s another example. In this scenario, we enter the trade at $7.26 and
simply subtract $0.63 from our entry and place our stop loss at $6.63.

As you can see, the stop loss is perfect: If we enter at $7.26 and prices move down to
$6.63, we know that we are wrong and exit immediately. This way we only risk $0.63
per share—just $63 for 100 shares.

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EXIT 2: PROFIT TARGET
This is the BETTER way to exit—by taking a PROFIT. For my profit target, I like to
use three times the Average Daily Range:

Profit Target = Average Daily Range * 3

Pg. 72>>>​ ​In this example, the profit target is $0.42 * 3 = $1.26.

Pg. 73>>>​ ​Here’s another example. In this scenario, we enter the trade at $7.26
and simply add $1.26 to our entry and place our profit target at $8.52.

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Pg. 74>>>​ ​Here’s another example:

● Entry is at $7.31
● Stop loss is placed at $7.31 - $0.63 = $6.68
● Profit target is placed at $7.31 + $1.26 = $8.57

As you can see a few weeks after entering the trade, we hit our profit target—even
though we NEVER came close to our stop loss. ​That’s the power of SMART exits.

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EXIT 3: BLACK BAR EXIT
This exit is extremely powerful because​ it enables you to exit a trade when the
stock is going NOWHERE.

Pg. 76>>>​ ​Here’s an example:

● Without the “Black Bar Exit”, we would have been stopped out at 7.73 for a
loss of $0.63 per share or $63 for 100 shares.

● With the “Black Bar Exit”, we exit the trade at 8.85 for a profit of $0.49 per
share or $49 for 100 shares.

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LEVERAGE YOUR ACCOUNT WITH OPTIONS
Pg. 92>>>​ ​Let’s run through a quick example to illustrate these points. Below is a
stock that gave us an entry signal to BUY for $11.10. Based on the calculations that
I gave you in the previous chapter, we place our stop loss at $10.59 and our profit
target at $12.12.

As you can see, a few days after entering the trade, the profit target was hit, and
we made $1.02 per share or $102 for 100 shares. ​That’s 9%​ in just a few days!

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TRADING OPTIONS with POWERX STRATEGY
Pg. 96>>>​ ​Let’s start with an example—in this chart, all three indicators are
signaling BUY. And today, the price of the stock moved above the high of the
“signal bar” and if we had traded the stock, we would BUY the stock at $13.96.
Based on the stop loss and profit target calculations that you learned earlier, the
stop loss for this trade would be at $13.27 and the profit target is at $15.34.

​ o we still have to
But we’re not trading the stock. We’re trading OPTIONS. S
look at the stock to see what it’s doing, since the option is tied to the stock.

24
Pg. 100>>>​ ​WHEN TO EXIT THE OPTIONS TRADE
After entering an options trade, take a quick look after the markets close to see if the
stock gives an exit signal. In this example, the stock is moving up as expected after a
few days—but we haven’t reached our profit target yet.

In this case, you’d keep monitoring the stock. As soon as either the profit target or the
stop loss is hit—or you wind up with a black bar—we exit the options trade. When you
think about it all that way, it’s very simple, isn’t it?

25
GROW A SMALL ACCOUNT TO A B ​ IGGER ​ ONE
Pg. 110>>>​ ​The Best Money Management Approach
Let’s assume you start with a $10,000 account.

And let’s say you start on Feb 1st, 2017.

The table below shows you exactly how much you are supposed to risk:

When you start trading, you apply the 2% Rule, i.e. you are allowed to risk 2% of
your account. 2% of $10,000 is $200 (see Row 18)

And you already know, that when you risk $200 and you apply the “Golden Rule,”
you are trying to make $400.

You will have some losing trades, and you will have some winning trade. Your goal
is to make $100 per week on a $10,000 account.

Do you believe that THIS is a realistic goal? - Of course it is.

So if you are trying to make $100 per week, you will make $400 within 4 weeks and
your account grows from $10,000 to $10,400.

And that’s when the magic happens:

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Pg. 111>>>​ ​If you were able to make $100 per week ​consistently​ for 4 weeks in a
row, you have now earned the right to risk more.

As soon as your account is at $10,400, you are now allowed to risk $400 on every
trade:

And since you are now risking $400, you are trying to make $800 per trade.

If you achieve your goal of making $200 per week ​consistently​ for the next 4 weeks,
your account will grow by $800.

So now your account grows from $10,400 to $11,200.


Now you are allowed to increase your risk again from $400 to $600 per trade:

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Since you are now risking $600 per trade and you apply the “Golden Rule”, your
profit target is now $1,200. Therefore you no longer try to make $200 per week, you
are now trying to make $300 per week.

And after you prove to yourself that you can make $300 per week for the next 4
weeks, your account will grow by $1,200 (4 weeks * $300).

So your account grows from $11,200 to $12,400 by April 26, 2018.

As soon as there’s more than $12,400 in your account, you are allowed to increase
your risk again from $600 to $800.

And you increase your profit target from $1,200 to $1,600 since you are applying
the “Golden Rule:” You risk $800 and try to make $1,600.

Pg. 114>>>​ ​The table below shows when exactly you should increase your risk,
and therefore your profit target:

As you can see, after 1 year of trading, you could potentially grow a $10,000 into
$46,400 on Feb 28, 2019!!!

And within 18 months, you could grow your account to $86,000!

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MY TRADING PLAN
I want to make $___________ per year

$___________ per month

$___________ per week

My Account Size $______________ I am willing to risk $____________

I will trade the following market(s):___________________________________

Long Entry Signal: ______________________________________________

Short Entry Signal: ______________________________________________

Profit Target Exit:________________________________________________

Stop Loss Exit:__________________________________________________

Other Rules:____________________________________________________

______________________________________________________________

______________________________________________________________

______________________________________________________________

“ The Rockwell LIVE event was soooo worth 2 long days of flying for 4 days
in Texas. Trading is going great for me after being at Rockwell LIVE, so
I am really glad I got to be there. ”
— Shannon Weum

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!RI7UDGHVSHUmonth

:LQQLQJ3HUFHQWDJH

$YHUDJH:LQQLQJ7UDGH

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7RWDO3URILW

$YHUDJH3URILWSHU7UDGH

29
Coaching & Mentoring
Rockwell Trading anchors its processes in comprehensive
one-on-one coaching and mentoring. Your Rockwell Trading
Success Coach will mentor you directly to help you eliminate
the negative habits holding you back while, at the same time,
pushing you to refine your goals and map out a path from
here to there. Because once you’re there, there’s no limit.

• Focus on clarifying your goals and ambitions, so you


can strategize a meaningful path from point A to point B
• Learn to eliminate negative habits—the habits standing
between you and long-term success

• Gain the skills, resources and know-how to eliminate


challenges along the way, and keep yourself moving
forward

Every trader and every trading path are different—different


account sizes, trading styles, personality, time constraints and
prior knowledge. So why should you follow a training plan built
for someone else? Through ongoing coaching and mentoring,
you’ll construct an execution plan that makes sense for you
and your trading right now—not for someone else, not for some
other day, not for some other set of circumstances. Just YOU.

“ Markus is an enthusiastic, supportive and positive person and these


qualities are present in his daily interaction with employees, contractors
and the public...And if you are up to taking a challenge, he will provide
you the opportunity to get out of your comfort zone and support you in
learning new skills. Markus is constantly providing creative solutions that
will inspire you to be the best possible. You will be asked to think outside
the box and the best part is that he will value your opinion.”
— Denise Geihm

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POWERX SOFTWARE
Analyze over 15,000 stocks, options and ETFs in
minutes with the PowerX Software, and leverage
expert insights and real-time intel to place smarter,
more strategic trades.

• Find stocks with the highest profit potential


• Know exactly when to enter the trade
• The software determines the best way to
exit the trade based on the stock’s unique
characteristic
• PLUS: A powerful options module that
selects the best option to trade as gives
you exact entry and exit signals.

As a BONUS, you’ll get instant access to a 35


minute video designed to teach you to trade like
Markus using PowerX signals. This is one of the
best ways for new and even experienced traders
to get a big boost.

SCHEDULE YOUR FREE SOFTWARE DEMO


AT HTTPS://POWERXSTRATEGY.COM/GIFT

“ When I first met Markus, I knew right away that Markus’ trading knowledge and
experience were just what I needed to be a successful day trader. Markus has
become my ‘Mentor’ and I firmly believe that by following his complete day trading
program I will become a successful trader as well as having the opportunity to
network with a community of like minded traders.”

— Ken Kowalchuk

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WHAT'S NEXT?
Ready to dig in and take that next step
with Markus & Mark? Ready to kickstart
your trading career? Ready to push
yourself to finally achieve and maintain
true financial freedom?

Then let’s get started…


Next Step:

YOUR one-on-one session with your Success Coach or, even, with Markus or
Mark. It’s all possible—and it’s all possible RIGHT NOW.

Your customized strategy and coaching session paired with the skills, insights and
know-how you’ve achieved can help position you for better understanding and better
success now and in the future.

If you’re ready, so are we—and we want to help you excel. Schedule your strategy
session now by meeting with one of our Success Coaches and make the most out of
this powerhouse weekend.

SCHEDULE YOUR FREE TRADING PLAN SESSION AT


HTTPS://POWERXSTRATEGY.COM/GIFT

Markus Heitkoetter is a dynamic intense motivator, an all around good guy


and the expert for Trader Training. His company, Rockwell Trading is top
notch. Too bad I didn’t find him until I was past 50, but perhaps I couldn’t
have handled this much success earlier in life and it will mean more to me
now.”
— Mike Pope

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ROCKWELLTRADING.COM • 401 CONGRESSAVE 1540 • AUSTIN, TX 78705 • PHONE: 512-553-0835

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