The Matador V.22

I was told by my advisor in undergrad that if you really understand something you should be able to explain it so that everyone can understand. I was a chemistry major so he was basically telling me to explain concepts so that someone without a science background would be able to understand.

This has always stuck with me and is probably the reason I dropped out of medical school – I had a real issue with the medical field intentionally over complicating simple things. I would sit in class thinking “this is a really basic concept and if they would explain it to people in simple terms we would all be heathier!” – I digress…

The above image is a trading system I started working on in 2011. When I first started using the original version I considered myself a bricklayer. I would come to work and just repeat the same process over and over and over and over. I was pretty successful doing this but for some odd reason I did not have the discipline to stick with it. I would attend a seminar, read a book and see that joe blow was making 10x what I was making so let me incorporate Joe Blows trading into my trading. The result was always a losing streak that led to a blown account.

Over the past decade I have tried many strategies, but when I get tired of losing I always revert back to a mutation of my original Matador Scalping Strategy.

So what I am going to attempt here is to outline what I am doing in a manner that ANYBODY can understand. If I fall short, please let me know so I can improve my own understanding of my trading system.

Lets begin by identifying all the weird thangs that make up my chart!

For starters, I use Sierra Chart. It has a steep learning curve but I have found it to be the most stable rock solid customizable platform on the planet. It never crashes or chokes and you can make it do anything any other platform can do. I strongly urge ant trader serious about doing this thing for income to consider Sierra Chart.

Next. I do not use time based charts. I use Sierra Chart’s Flex Renko set to 22-16-0 which I have found to be ideal settings for the only vehicle I trade – the Nasdaq 100 Futures.

Lets jump head first into the chart.

The Matador V.22
The Matador V.22
  1. Bright red candles signify strong short term selling dominance as price has moved outside of the Keltner Channel. This is where I want to be in trades to scalp short.
  2. ADXMA – Average Directional Index Moving Average (45). When red, I am only looking to sell.
  3. GANN HiLo Activator. Short term trend indicator. I also use as a trailing stop.
  4. Keltner Channel. I only initiate trades when they are outside of the channel.
  5. Bright green (LIME) candles signify strong short tern buying dominance. This is where I want to be in long trades.
  6. Swing High – short term swing high (or fractal high)
  7. ADXMA – Flat and Grey means the market does not have the energy for the preferred quick clean entries.
  8. Swing Low – short term swing low (or fractal low)
  9. ADXMA – Green means its ok to take long entries.

It looks like a lot, but it is what I need to make quick decisions for quick clean market scalps.

In future posts we will start to look at both good and bad entries. I will probably post more of the bad entries as I tend to learn more from the bad ones.

Until then, feel free to ask any questions and if you use Sierra Chart reach out for the chart template.

15 responses to “The Matador V.22”

  1. Joe Avatar


    Very interesting. I would like to take a closer look at what you are doing. Can I have a copy of your chart template?



    1. TheMatador Avatar

      Thanks for visiting! Glad somebody finds an inkling of value in it! LOL!!!

      Sending chartbook now to the email on file.

  2. vespatrades Avatar

    This is really interesting. Thank you for sharing. Seems like you’re making great use of some built-in Sierra Chart studies. If you’re willing to share, I’d love to see how you’ve implemented it. Really looking forward to future posts. Cheers

    1. TheMatador Avatar

      Thanks for visiting! Sending chartbook just now. Let me know if you have any questions.

  3. Flavius Avatar

    Great. Thank you. Can I also get a copy?

    1. TheMatador Avatar

      Sure thing! Thanks for the support!

  4. Andrew Avatar


    Thanks for the interesting post! Could I also have a copy of the chart template to try out?

    Thanks for your time,


    1. TheMatador Avatar

      No problemo! Thanks for visiting!

  5. Anonymous Avatar

    Hey Matador, love your sierra template and your explanation of your analysis for executing trades with your system! I would like to get my hand on a copy, thanks and many wishes.

  6. Jon Avatar

    Very interesting scalp book you’ve built! I’m rebuilding your chart and I think I’m pretty close. The only part I’m having trouble with is the ADXMA. Would love a copy of your chtbook to compare.

    Best Regards,

  7. Peter Avatar

    Hi, agree with everyone else – great stuff! Always looking to learn more about Sierra and different systems and would love to take a look at the chartbook, as well. Thank you.

  8. Kendo Avatar

    Appreciate you sharing all the knowledge – can I also please have a copy of the chartbook? Thanks!!

    1. TheMatador Avatar

      Sorry for the dalay – sending updated chartbook now!

  9. Alex Avatar

    Hi Matador, great post, I am studying and will try to use your strategy. May you please share me a copy of the chart book? Thank you!

    1. TheMatador Avatar

      Thx for visiting! Check your email.

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