Raja Banks Trading Strategy
Raja first got a taste of Forex trading back in 2016 and it lit a fire in him that has been burning ever since. In this feature we will take a look at how Raja Banks entered the game, his success and failures and, most importantly, the exact strategy he used to get to where he is.
His Background
Raja grew up in Pakistan and moved to Canada when he was 25.
His trading journey began by accident back in 2016, while he was running a sales office. One of his colleagues introduced him to an Instagram Trader (who we now know is Uncle Ted) that was making significant profits.
He was initially dismissive, but later became intrigued when he saw “Uncle Ted,” making large profits with what seemed like minimal effort. This sparked his curiosity, especially since he was already earning a substantial income from his sales job but felt that he could achieve more.
He reached out to Uncle Ted, learned the basics about Forex, opened an account and, just like most beginners, quickly lost $200. This made him realize that trying to make money from something he didn’t understand was risky.
But that small bite of the Forex apple made him determined to learn. As a result, he enrolled in a mentorship program led by Uncle Ted and attended private Zoom sessions where he regularly interacted with a group of like-minded traders.
This marked the beginning of his trading journey.
His Trading Philosophy & Breakthrough
The failure rate in the trading business is extremely high but Raja has racked up millions in trading profits and is one of the few traders to do so. But it wasn’t easy and it didn’t happen overnight.
He jumped, head first into trading USD/CAD & XAU/USD but racked up a long string of losers before finally settling down.
He gave himself four months to develop and refine a more disciplined approach, focusing on the same strategy, time, and patterns each day. He emphasized the importance of not being emotionally attached to individual losing trades, instead seeing trading as a game of probabilities.
Over time, with the right strategy and discipline, he came to the conclusion that “less is more”—trading one pair with a limited number of trades, focusing on a specific edge, and maintaining consistency would lead to long-term success.
Raja Banks’ Trading Strategy
Choosing The Right Fx Pair
Raja trades mostly Gold & the GBP/JPY simply because there is very good volume and liquidity on these pairs during the times that he trades which are the pre-London and pre New York Open.
Choosing The Right Session/Time To Trade
It is very important to consider the trading session and how it’s influenced by the currencies involved. For example, trading the pound-yen (GBP/JPY) during the London, New York, or Asian sessions works well because only one currency is actively driving the pair in each session.
However, trading the pound-US dollar (GBP/USD) during the New York session is less favorable because both the pound and the dollar are actively traded, which results in two forces acting on the pair simultaneously.
GBP/USD is better suited for the pre-London and London sessions when the pound alone drives the pair, making it easier to predict movement. Understanding the macroeconomic events in the UK and Japan also aids in making these decisions.
How To Set Up & Execute The Trade
Once you settle on a pair and a time/session to trade now it’s time to actually execute. Raja trades only one pair on the 4 hour chart and he tries to do this just once per day.
His strategy focuses on 4-hour (4H) candle closures at key support or resistance levels across major currency pairs. If a 4-hour candle closes at a resistance level, he would take a sell position with a 105-pip stop-loss.
This approach, which is consistent and straightforward, has proven effective for him in generating significant profits. The emphasis is on sticking to these technical levels for decision-making.
Risk Management
Raja’s risk management approach centers on three key principles:
- First, he focuses on managing downside risk, always considering how to lose less when in a trade rather than focusing on potential profits. Earlier in his trading journey, he used to concentrate on making money, but now he prioritizes minimizing losses, especially when a trade lingers around break-even or enters a small drawdown.
- Second, he avoids the common mistake of cutting profits too quickly while letting losses run. Instead, he tries to control losses more effectively.
- Lastly, he adjusts his risk levels based on his current confidence levels and recent success. Typically, he risks 1-2% per trade, but after profitable days, it is common for him to increase his risk to 5-7% when they feel confident.
His Overarching Philosophy
Raja Banks’ overarching trading philosophy revolves around simplicity, consistency, and risk management. He emphasizes focusing on high-probability trade setups. Rather than complicating his strategy with too many indicators, he relies on clean charts, price action, and market structure to guide his decisions. Keep it simple.
Click Here to get access to the PDFs and videos that lay out Raja Bank’s complete trading strategy with examples of trade setups and executions.
If you liked this feature you can check out the other features on NBB’s Trading Strategy, Stockbee’s Trading Method, Blackrock’s Aladdin, A Tutorial On Market Structure, How To Trade With the BPSPX, The ICT Candle Counting Method, See What It Is Like To Make Millions As A Trader, How To Pass A Trader Evaluation & Get Funded, The Top Step Trader Review, How Your Trade Size Impacts Your Returns, ICT Liquidity Runs, How To Trade The Options Chart & The Falang Futures Algo and How To Use Volume To Trade Like Banks & Institutions & other book reviews.
