The Wheel Analyzer vs The PowerX Strategy

The Wheel Analyzer vs The PowerX Strategy

Rockwell Trading offers an amazing piece of software called The PowerX Optimizer. The program is pretty amazing and gives the user two distinctly different strategies to follow.

1. PowerX Swing Trading (swing trading stocks and options)

2. Wheel Analyzer (selling cash secured puts)

 

Disclaimer: There are affiliate links on this page. This means that if you click through and purchase anything, I might earn a commission for the introduction with no extra cost to you.

 

In this article I want to discuss the differences between these strategies and which one might work best for you. If you are not familiar with the PowerX Optimizer you can learn more about it in my full PowerX review here.

It is an amazing tool that takes all the work out of trading for you.

How Do We Define What The Best Trading Strategy Is?

There are so many factors that go into deciding on what trading strategy is ‘best’. If you think about it – a strategy that works for a person with a huge account might not be useful for a person with a small account.

Do we take the win rate, most money per trade, minimal effort etc?

Think about it…..you might have a strategy that works 90% of the time but is that really better if you are risking a massive draw down when you finally take a loss?

When you really start getting into it there are a lot of factors to consider when deciding if a trading strategy is good for you.

 

The Wheel Analyzer vs The PowerX Strategy

When it comes to trading strategies, Rockwell Trading have put together a product called PowerX Optimizer. The two strategies that it offers users are like night and day.

Check out the program here for a 33% discount!

The Wheel Analyzer vs The PowerX Strategy

 

How Much Money You Need

The biggest difference is that the minimum account size required to perform the Wheel trading strategy is much higher than the PowerX strategy.

The Wheel strategy is based on selling options contracts. You need a minimum of $10k cash or $20k buying power to participate. This is quite different from the PowerX strategy which is a simple swing trading (stocks and options) strategy.

In theory, you can use a very small amount of money to trade the PowerX strategy. If you are buying options on the ideas then $1000 or less would work.

 

Return on Investment: Which Strategy?

This is obviously something people usually care about a lot! The different strategies do offer drastically different potential returns. Typically, the Wheel returns 30% per year on the cash you have. The PowerX strategy can be double that!

The Wheel is a more conservative strategy but it might not be the safest strategy overall.

Check out the program here for a 33% discount!

 

How Many Trades are Winners?

The two strategies are quite different when it comes to win rate. Typically, you will only win half of the PowerX strategy trades. While 50% might not seem that great, I have found it is possible to still make great money with a 50% win rate.

The Wheel strategy wins almost 100% of the time! So, lets just say a 90% win rate is fairly normal. SO, which one is best? Not so easy to give one answer is it?

is powerX optimizer a scam

 

How Much Are We Risking per Trade?

The Wheel strategy has a high risk per trade than the PowerX. You can expect to be risking 5% of your account per trade. So, the risk is a bit higher than the PowerX strategy. The PowerX strategy has a guideline of risking only 2% of your account per trade.

The PowerX strategy is the one that risks the lower % amount of capital per trade. If you are worried about what you are risking per trade then the PowerX strategy offers a lower amount of loss per trade.

Remember, the chances of taking that loss on a trade are almost double than with the Wheel strategy though!

 

What is The Normal Expected Drawdown for a Strategy?

When you are trading or investing, it is not abnormal for an account to drop 20% – 30% at some point. This is relatively normal as you get some losing trades or losing streak.

The PowerX and Wheel strategy also show account drawdowns. The Wheel strategy tends to have higher drawdowns than the PowerX strategy. This is something that you need to be comfortable with.

 

How Much Time Needed to Execute

Having to sit in front of your computer and day trade takes a lot of time and effort. Luckily, neither strategy in the PowerX Optimizer requires you to do that.

Both are swing trading strategies that only require a very small amount of time per day to implement.

The PowerX swing trading strategy require 20 mins a day on the days you are looking to take a trade. The Wheel Strategy probably takes less time.

Check out the program here for a 33% discount!

 

Account Growth Goals

The PowerX strategy is more likely to be useful for growing small accounts quickly. The Wheel strategy results in much slower growth.

 

The Wheel Analyzer vs The PowerX Strategy: Conclusions

If you are trading for income generation then in my opinion the Wheel strategy is probably the better choice. It is much harder to grow an account quickly when using the Wheel than with the PowerX.

Check out the program here for a 33% discount!

 

So, it seems that if you have a large account (100,000+) you might want to consider the Wheel strategy and if you have a smaller account and want to grow it quickly then the PowerX strategy might be better.

This is what makes finding the best trading strategy more of a subjective thing – which one fits you better.

Hope this helps!

Russell

 

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The Wheel Analyzer vs The PowerX Strategy

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