Welcome to my exclusive "no-nonsense" interview with trader and system developer, Adam Burgoyne. For the first time ever, you will hear Adam answering hard questions about his 5EMAs Forex Trading System. The interview is now playing on your computer so please turn up the volume on your speakers.
Below you will find the questions that I am covering in this interview and by clicking on a question, you will be taken directly to that point in the transcript so you can read Adam's response.
Hello everyone, this is Avi Frister. Thank you again for joining me in this exclusive interview with trader and system developer Adam Burgoyne. Well, today's interview is truly special and for several reasons. Through lots of efforts, and I mean lots of efforts, I got Adam to reveal some interesting aspects of his forex trading course, the 5EMAs system. I wanted you to hear Adam answering questions people constantly have about his systems. I thought what better way than to get Adam on the phone, compile some of these key questions and have him answer them.
So, this is what this interview is about. I really think it is very special and I would like to now start it.
Ok, let’s see if Adam is on the other side of the line.
Avi: Hello, Adam, are you there?
Adam: Yeah, Hi Avi.
Avi: Hi Adam how are you?
Adam: Yes, I am good thank you.
Avi: Adam, first of all I would like to thank you very much for doing this type of interview. Few system developers and traders have agreed to this type of questions and answers interview about their systems. It shows a lot about what you and your products are about and I really appreciate it.
Adam: Ok, sure. Good.
Avi: Adam, I have several questions today so let's start running through these questions. First of all Adam, how did you come up with the 5EMAs Forex Trading System which is basically your main course. So, how did you come up with this system?
Adam: The bottom line is an awful a lot of trial and error. The system is the result of almost 8 years of live forex trading. So from that point of view it is something that has been tested pretty extensively before it was ever envisaged as a course in its own right.
Avi: So, it is basically a product of a lot of trial and error and you have been improving it a lot throughout the years.
Adam: That’s right. It has been traded in a live environment for about yes, 8 years. That was really the original intention - it was never envisaged as a course. It was a system that could be traded on a professional level.
Avi: Adam, is it a trend or a day trading system the 5EMAs Forex Trading System?
Adam: Well, it is actually a counter-trend system. The approach that we use is to trade against the pullbacks from a main trend but it is done predominately in a day trading fashion.
Avi: Sorry, maybe I didn’t ask the question properly. Is it possible to swing trade with this system?
Adam: No, it is not a swing trading systems. It is designed as a day trading strategy. But, rather than go with the trend we go with the counter trend.
Avi: Adam, how successful have you been at trading this system?
Adam: Quite is the honest answer! We say that 85%+ is the success rate, obviously we’ve got a lot of experience trading this system. Generally speaking we would expect to hit the 95% win ratio on any given month.
Avi: That is very special. But you do obviously say "in a given month". Obviously there are better months and worse months.
Adam: Absolutely. No system is going to work all of the time. The market is too dynamic for that. But generally speaking, what we don’t do is run around and trade for the sake of it. We would normally take one trade a day.
Avi: Ok. Adam, one thing I want to tell to my listeners is that this is what trading is about. It’s about mastering a system that has great potential of having a high win ratio. So, the system itself needs mastering right? Am I correct about that? It’s a learning curve, but if the system is sound and good the learning curve pays off.
Adam: Absolutely, yes! Nothing that is worth doing is necessarily easy. But if you take the time and practice and study the technique and follow the examples then, yes, you can become very successful quite quickly with it - as has been proven with other people that have bought the course.
Avi: Well, we will get to that part in a moment. Let’s now go to the next question. Can you reveal to us what is the general logic of the system. By that I mean, how it works but without exposing too much information.
Adam: Yes, absolutely. The entries are actually very straight forward. We have one main rule for entering a market and then we have three exit strategies depending on what is happening with the trade. So the combination of exit scenarios allows profits to be made pretty much regardless of the strength or duration of the market move. Entries themselves, as I said earlier, rather than based on common trend indicators to chase a trend we use them to identify pullbacks in an existing trend and trade those instead. So that allows us to get some optimal entry points and stops us from chasing along with the rest of the herd.
Avi: Ok. We know the FX spot market is a 24 hour session. So, would the system work more during US, European or Asian session? Or maybe throughout all of them? Can you expand a bit on that please?
Adam: It actually doesn't matter what time of the day you are trading. Obviously due to the increase of volatility you are going to get more trades coming up particularly during the UK and the US session, but, trades pop up 24-5.
Avi: Adam, you include an expert advisor for people who buy your course. What is it for?
Adam: It's basically there to save you from being glued to the computer screen all day. The way we use it is very, very simple. It’s designed to identify the base entry criteria for the strategy. And, when it does that it will pop up a little box just to tell you which currency pair it is referring to and the time of the alert. It also starts making a noise so you know it is time to come back and look at the screen.
Avi: That is neat. It saves a lot of time.
Adam: Absolutely. What we did is also build in a little bit of time logic so we can ask it to warn us actually ahead of the criteria being met. So, maybe 1, 2 or 3 pips. What ever we feel is sensible for the market we are trading. That gives us a few extra seconds orminutes to go back to the screen and check the rest of the criteria to decide weather we want to take that trade or not.
Avi: Thank you Adam for that detailed answer. On your 5EMAs forex trading system webpage there is an account statement that states that it followed a 34 week live unbroken trade period where a $5,000 account grew into a $35,873 using only the most conservative exit strategy. First of all I want to say that this is impressive by all standards. Can you talk a bit about that?
Adam: This was actually what prompted the creation of the course. As I said, the strategy was developed for trading professionally and we were trading an account for an investor who wanted to put his money somewhere sensible for a short period of time before he went into a different project. So that was the result of it. It was a little bit of cash sitting on the side and it was traded very, very nicely. He then took his money and put it where he intended in the first place. So, as a thank you he agreed that we can use the trading statement from that account for the website.
Avi: Wow! That is more than 600% increase in equity in 34 weeks. That’s really impressive. And this is by only using the most conservative exit strategy right?
Adam: Yes, that is right. This was shooting for 25 pips per trade.
Avi: This just goes to show to my listeners how day-trading can be really profitable if you do it correctly and you invest time and effort in the system you are going to trade. It eventually pays of and that is what trading is all about.
Avi: Below (exhibit 1) there is an account statement belonging to a trader from Norway who purchased your system. As we can see from this account statement in 11 trading days he increased his account by 23.61% for a total dollar value of $21,807. Again, this is only in 11 trading days. Can you expand a bit about this specific trader?