Yes, cheato will remove nitrates. It will also remove phosphates.
Look at cheato as a tool. You use the cheato to export the nitrates from the tank. When the cheato grows too much for your refugium, throw 1/2 of it away. Repeat as often as necessary. Grow it--toss it.
A deep sand bed (DSB) will also help to remove nitrates. Read up on DSB theory and look for the words "aerobic" and "anaerobic".
As already mentioned:
Hopefully you're using RO/DI water.
Feed frozen foods--NOT pellets or flakes
How is your cleanup crew? What do you have for your cleanup crew?
Are you doing 5% or 10% water changes weekly?
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