Profit Spring

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Toshko Raychev Profit Spring

Toshko Raychev Presents

THE PROFIT SPRING


TRADING SYSTEM

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Toshko Raychev Profit Spring

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Toshko Raychev Profit Spring

INTRODUCTION

The Profit Spring is a system that is ideal for new traders who are still getting up to speed
with trading the Forex market, and can also be very powerful in the hands of more
advanced traders.

The system has also been designed to work on an intraday basis, but it can be traded on
all timeframes and all available currency pairs.

The Profit Spring system is very easy to apply once you are familiar with the rules. It uses
a 1:1 or higher risk/reward ratio which means you could gain as much as you risk, or more,
on each trade that you enter.

The indicators that are part of this system are very easy to understand and interpret
making it a great system for new traders. The Profit Spring system can be considered a
conservative strategy which means that the risks are relatively low.

This is a trend following strategy and works to ensure that traders remain on the right
side of the trend at all times.

As you know, the trend is your friend, and if you can follow the rules of this trading system
you can be sure that you will remain on the right side of trade for the majority of your
trading endeavors.

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Toshko Raychev Profit Spring

BUY/LONG RULES

1. Green MA must be above Red MA


2. MACD must be above Zero (0) level
3. Stochastic must be above 50 level
4. CCI must be above Zero (0) level
5. After all of the above conditions are met, enter the trade at the open of the next
candle
6. Set your Stop Loss a few pips below the most recent Swing low
7. There are two options for setting your Take Profit Target:
a. Set your Take Profit the same distance away from the Entry level as your
Stop Loss (1:1 Risk to Reward ratio)
b. Use TR Bands as your targets

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Toshko Raychev Profit Spring

SELL/SHORT RULES

1. Green MA must be below Red MA


2. MACD must be below Zero (0) level
3. Stochastic must be below 50 level
4. CCI must be below Zero (0) level
5. After all of the above conditions are met, enter the trade at the open of the next
candle
6. Set your Stop Loss a few pips above the most recent Swing high
7. There are two options for setting your Take Profit Target:
a. Set your Take Profit the same distance away from the Entry level as your
Stop Loss (1:1 Risk to Reward ratio)
b. Use TR Bands as your targets

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Toshko Raychev Profit Spring

STOP LOSS
Setting Stop Loss levels in this system is easy:

• For buy/long trades, Stop Loss goes few pips below the most recent Swing Low
point

• For sell/short trades, Stop Loss goes few pips above the most recent Swing High
point

But what exaclty are Swing points? Let's examine that in a bit more detailed manner.

Swing High Points

A Swing High is formed when the high of


a price candle is higher than the highs of
the candles to the left and right of it (at
least two candles on the left and two on
the right).

Swing Low Points

A Swing Low is formed when the low of a


price candle is lower than the lows of the
candles to the left and right of it (at least
two candles on the left and two on the
right).

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Toshko Raychev Profit Spring

TAKE PROFIT
This system gives you two ways to determine your Take Profit targets:

• The same distance away from the Entry level as your Stop Loss (1:1 Risk to Reward
ratio)

• By using TR Bands as your targets

1:1 Risk to Reward ratio

If you use the first option, you will need to set your Stop Loss properly, see how many
pips is it from the Entry point, and set your Take Profit at the same distance.

Using TR Bands as your targets

If you decide to use the TR bands as your targets, then the closest one to your Entry point
will be Target #1, second closest TR Band to your Entry point will be your Target #2, etc.

Once the price reaches Target #1, you can manage the trade by moving your Stop Loss
to break-even (to your Entry level), and by closing a certain percentage of your position.
Every time a Target is reached, move the Stop Loss to the level of previous Target.

If you have 2 Targets, then you'll close 50% of your position once Target #1 is reached. If
you have 3 Targets, then you'll close 33% of your position each time a Target has been
reached, and if you have 4 Targets, you'll close 25% of your position each time a Target
has been reached.

You can close a part of a position at any time by setting the Volume field to the lot size
that you want to close. MetaTrader4 then closes that part, and creates a new trade for the
remainder of the position.

For example, if you enter the trade with the lot size of 1.0 and you want to close 50% of
your trade, you would change your lot size to 0.5.

This is a very good method of securing yourself and banking some pips even if the trade
turns against you. Once the first target is reached, you will bank some pips, move the stop
loss to break even and even if the price reaches your Stop Loss, you will still get out of
the market with profit.

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Toshko Raychev Profit Spring

BUY/LONG EXAMPLE
with One Target

This is a buy trade I took on NZDUSD currency pair, H1 timeframe.

First I waited for the Green MA to cross above Red MA (1). Once that happened, I checked
the rest of the indicators: MACD was already above Zero level (2), Stochastic crossed
above the 50 level (3) and CCI was above Zero level (4).

After all of my entry conditions were met, I waited for the candle to close. As soon as it
closed and new candle opened, I entered the market with a buy trade (5). I looked for the
closest Swing low point and placed the Stop Loss a few pips below it (6). I used 1:1 Risk
to Rewad ratio, therefore I placed the Take Profit Target the same distance away from the
Entry point as my Stop Loss (7).

The trade played out in my favor, price just continued rising, and directly hit my Take
Profit level.

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Toshko Raychev Profit Spring

BUY/LONG EXAMPLE
with Multiple Targets

This is a buy trade I took on the AUDUSD currency pair, M15 timeframe.

Before taking the trade, I had to make sure all the conditions were met. First of all, the
Green MA crossed above the Red MA (1). MACD was above Zero level (2), Stochastic was
above the 50 level (3) and CCI was above Zero level (4).

After all the conditions were met and the candle closed, at the open of the next candle I
entered the market with a buy trade (5).

I looked for the nearest Swing low point and placed my Stop Loss a few pips below it (6).

For my first Take Profit Target I used the closest TR Band. The price hit it few candles later,
and at that point I closed half of my position (7a). I also moved my Stop Loss up to my
Entry Point level. My second Take Profit Target was the next TR line. The price fluctuated
for a short while, but continued going up and hit my second Target. At that point I closed
the trade completely with a full profit (7b).

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Toshko Raychev Profit Spring

SELL/SHORT EXAMPLE
with One Target

This is a sell trade I took on EURUSD currency pair, H4 timeframe.

First I waited for the Green MA to cross below Red MA (1). Once that happened, I checked
the rest of the indicators: MACD was below Zero level (2), Stochastic crossed below the
50 level (3) and CCI was below Zero level (4).

After all of my entry conditions were met, I waited for the candle to close. As soon as it
closed and new candle opened, I entered the market with a buy trade (5).

I looked for the closest Swing high point and placed the Stop Loss a few pips above it (6).
I used 1:1 Risk to Rewad ratio, therefore I placed the Take Profit Target the same distance
away from the Entry point as my Stop Loss (7).

The trade played out in my favor, price just continued falling and directly hit my Take
Profit level.

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Toshko Raychev Profit Spring

SELL/SHORT EXAMPLE
with Multiple Targets

This is a sell trade I took on the GBPUSD currency pair, M15 timeframe.

Before taking the trade, I had to make sure all the conditions were met. First of all, the
Green MA had crossed below the Red MA (1). MACD was below Zero level (2), Stochastic
was below the 50 level (3) and CCI was below Zero level (4).

After all the conditions were met and the candle closed, at the open of the next candle I
entered the market with a buy trade (5).

I looked for the nearest Swing high point and placed my Stop Loss a few pips above it (6).

For my first Take Profit Target I used the closest TR Band. The price hit it few candles later
and at that point I closed half of my position (7a). I also moved my Stop Loss down to my
Entry Point level. My second Take Profit Target was the next TR line. The price just
continued going down and hit my second Target. At that point I closed the trade
completely with a full profit (7b).

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Toshko Raychev Profit Spring

CONCLUSION

By now I am sure that you will agree that the Profit Spring trading system is a simple yet
powerful system.

Take your time and practice using this system and you will see that this strategy can be
very powerful in the hands of responsible traders. By trading this system you will always
be on the right side of the trend and this is a vital part of being a profitable trader.

Stick to the rules and I am sure that you will be very happy with the results.

Warm Regards,

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