Welcome, my name is Karl Domm. I went behind the paywall of Marcus Heitkoetter with Rockwell Trading and we’re going to go over the 37 secrets that I found.
Now, I use my 28 years of online options trading experience to expose trading systems and my over 30 years in business to expose business models. Now, why am I doing this? I believe the truth is the most important thing. And if you think this information sounds harsh because Marcus is such a nice and honest guy, then I ask that you only look at the facts as I’m here to only share the truth. And I’m here to help people understand the true risks when they get involved with certain instructors. And I’m here to counteract that perfectly polished perceived perception of Youtube stock instructors because it can be dangerous to your trading account.
Now, Marcus runs a trading group called Rockwell Trading and he’s got a large Youtube following with over 90 000 subscribers. And he sells a software used to trade stocks and options. The software has three trading systems. Two are directional technical analysis systems called the PowerX Optimizer, and the third is designed to pick options for the wheel strategy.
Now, I found Marcus when I received comments on my Youtube channel stating that Marcus shares his P&L. I made a comment on his channel then he actually emailed me after checking out my channel. And he offered his software to me in order to review it. Now, he also added that he could do a collaboration with me on his channel which would be a huge boost for my channel. And in my opinion, this was definitely an incentive to do a positive review on a software. And you’ll find that this is the norm on Youtube, you know, you scratch my back I’ll scratch yours. And so people are incentivized to only say positive things about each other.
Unfortunately for Marcus or anyone else looking to play this game, they are only going to get the truth out of me whether it’s good or bad. Now, Marcus opened up a $250,000 account on January 11, 2021 in order to use a software to pick and manage the wheel strategy. He calls it his $500,000 account because he has margin.
Now, his main goal was to take out $15,0000 per month to pay his living expenses thus trading for a living. And he would share the results including his P&L of the account. Now, he did this to prove that it can be done, but he did not have a dedicated account for his directional PowerX trading system; not one that I knew of.
When Marcus is looking at his P&L, he does not take into account unrealized losses. And this is like walking into a casino playing blackjack and being down $200 but believing you’re not really down until you exit the casino. Obviously, we disagree about this concept.
Before I go over the 37 things Marcus does not want you to know. I’m going to go over 13 things that Marcus does want you to believe.
So #1, when signing up for the software, the initial consultation is informative and professional. That is true.
#2, Marcus is willing to answer the tough questions 100% of the time; but the truth is, he only answers those questions 98% of the time.
#3, an advantage to the software is you don’t need to be in front of your computer all day to use it. That is true.
#4, Rockwell Trading support is very responsive. That is true.
#5, the three trade plans are very detailed and that’s a good thing. That is true.
#6, Marcus has the most positive attitude for a stock instructor on Youtube. That is true.
#7, Marcus has experienced training, but I think he should do more back-testing.
#8, the training videos on the website are well organized. That is true.
#9, I made over 4.8 % in 20 trading days using the wheel strategy and his software. That is true.
#10, Marcus got people excited by setting the expectations of making 60% per year with the wheel strategy. He also mentioned turning $10,000 into $40,000 in a year with the wheel strategy.
And #11, Marcus shows all of his trades. Well, that’s not really true. He doesn’t show all of them.
#12, Marcus shares his P&L. Well, that’s not really true as we will get into this video.
And #13, if you join his mastermind, you’ll get a secret trade that only works in private because giving it to the public will make it stop working. I don’t know if that’s true or not. I tend to lean towards it not true.
Next, I’m going to get into the 37 things that Marcus is hiding from you.
#1, he claims to have a consistent trade plan to follow, but he doesn’t follow it himself.
#2, the way Marcus trades the wheel creates significant volatility in his account. Significant means the account value in some months moves up or down around 20% to 30%.
#3, the software recommends going long options which are low probability trades.
#4, the software has problems doing directional PowerX calculations in a crash market.
#5, once you’re on Marcus’s email list, you can expect a lot of emails; more than one per day from Marcus.
#6, using the software requires end-of-day data and it’s required for you to wait until after 9 pm eastern or the next morning in order to run the data for the next day.
#7, I use the software to track my results for a month from January 11 2021 to February 5th 2021. I traded the three systems separately using $25,000 in each account using paper money.
#8, even if you follow the objective rules on the directional PowerX, you still run into subjective rules, no matter what.
#9, the software did not give me very many options/derivatives to trade over the one month trial period.
#10, the software will recommend to short stocks, and sometimes they’re not available to short.
#11, following the PowerX directional trade plan using stocks, I lost 13.58% in only one month.
#12, following the PowerX directional trade plan using options, I lost 6.98% in only one month.
#13, I traded stocks following the PowerX for a full month and I ended up trading nine stocks and they were all losers.
#14, I traded options following the PowerX for a full month. I traded seven options and they were all losers.
#15, based on my trial and Marcus’s P&L, the PowerX optimizer software does not create an edge.
#16, sometimes the software was not able to get my capital fully allocated as it searched for qualified stocks to trade. it was even harder to get the long options portfolio fully allocated.
#17, when Marcus saw my losing results using the PowerX, he claimed that the market conditions were not correct for placing the trades due to the lack of a trend. Then one year later, he has not claimed the proper market conditions have come up yet even though the market has been up around 25% over the last 12 months.
#18, Marcus stopped sharing his P&L when it was not favorable to him in late 2021.
#19, in the $500,000 account, he lost his portfolio margin status due to lack of funds when the net liquidation value in his Tastyworks account fell below $175,000.
#20, Marcus says he shares all his trades with results, but he stopped when it was not in his favor to do so. For example, at the most key moment at year end 2021 when he did not share his account.
#21, Marcus committed to sharing his P&L in March of 2021 using the PowerX directional software, and it’s been almost a year later and he still has not shared his P&L.
#22, I read Marcus’s book on the wheel strategy and it was very vague and did not supply objective rules to apply. It’s missing the most important thing and that is a concrete trade plan.
#23, when Marcus gets into trouble using the wheel, he does not cut his losses. He adds risk to the trade. He basically martingales, which is dangerous.
#24, the wheel strategy can get crushed in a crash market. He does not want you to know that.
#25, Marcus claimed in our interview in March of 2021, which is on my channel, that he would share his P&L using the PowerX directional trading system. And it’s been almost a year and he has not shared his P&L. I apologize if I have a couple of these duplicates. It was hard–it was difficult to kind of organize all this information.
#26, in Marcus’s last update video from January 10, 2022 episode 216, a lot of people expected to see what Marcus has done in the past which includes his account gains and unrealized losses. People were expecting to see his 2021 results. And he did not share the account at all.
#27, Marcus did his best to hide this video from the algorithm by creating three or four live streams right after the video’s release to make it harder to find. Also in this video, Marcus deleted comments which he claimed were spam. And one of those comments was a guy who did the math on his open positions at year end 2021. And that person emailed me the numbers and here they are.
So if you look at all the positions here, at your end. Bottom line was he lost $21,417 trading the wheel strategy.
#28, Marcus said he learned one major thing in 2021 which was not to trade growth stocks in the wheel strategy and that he should have never used $RIDE as he stated over and over again. Then in late 2021, he traded $ARKK. Now $ARKK is a growth ETF. So I asked him about this in the comments and he chose not to respond.
#29, in the latest update video, Marcus tried to redeem himself by responding to a comment about the purpose of his account, but the bottom line was that the account’s purpose was to take out $15,000 per month for living expenses. And when I asked him about this, he did not
respond. He chose to hide the fact that he had a bad year trading the wheel rather than admitting it in order to protect his business interests. And he chose his business interests over truth and transparency.
#30, he started a newly funded account to hide the old account failure.
#31, he did an interview on my channel. Which he did under the impression that he was helping me, but in reality he was only there to attack me and defend himself after I used his PowerX to make losing trades. Now, the pre-call interview was about how we were going to go easy on each other. We were going to keep it light but he waited like a sniper until I thought the interview was over to attack me on two items both at the same time. In which I was later able to prove were false accusations.
And also besides those two accusations, he said that I took trades the wrong way using his PowerX because I didn’t wait for a price trigger to occur and that those false trades should have never been part of my review. But when I went back and reviewed the trades, I followed the rules and I made the trades correctly by waiting for them to hit the price trigger that they should have hit.
#32, on Marcus’s video, episode 208, at 54 minutes and 10 seconds, a follower shared that he was down $432,000 on the $RIDE wheel trade.
#33, I specifically asked Marcus to not make PowerX trades in hindsight and that he starts the trades from day one. And Marcus said he would do that but then he only shared his P&L using the PowerX directional system after it was profitable. He showed his trades in hindsight on video 168 (May 27th), video 171 (June 7th), video 175 (June 21st), video 178 (July 1st), and video 179 on (July 5th).
#34, Marcus erased one of my comments and only after I confronted him and proved the comment was erased by him, not the algorithm, he reinstated the comment. And you can see proof of this in my Rockwell Trading review update video from August 26, 2021.
#35, I have proven that the directional PowerX optimizer has not worked over a one year period by trading it myself and by following Marcus’s attempt to trade it.
#36, I have proven that Marcus lost money in 2021 trading the wheel strategy. And there are claims of success of others on his channel, but they’re unproven because there’s no P&L. And the only proven results are the wheel strategy did not work.
#37, based on the lack of the PowerX success, I can make the following statements that Marcus does not want you to know.
#1, Marcus touts things that seem important like new upgrades to the software, but these things are worthless if the trade system does not work. #2, he claims to have students that make money with one of his strategies, but they don’t share their P&L, and when it comes to sharing P&L his strategies are proven not to work in 2021.
If you’re interested in a proven wheel strategy, I call it the safe wheel strategy. I do a live stream every Monday morning at 7:15 a.m. Pacific time and I share the account and the account trades and the results and the P&L right there in front of you. So come to my live stream.