Skewed Step Indices 2026 | Trade Asymmetric Step Sizes on Deriv
What Are Skewed Step Indices?
If you've traded the classic Step Index on Deriv, you know it's a balanced 50/50 game. The price moves up by 0.1, or down by 0.1, with an equal probability on every single tick. It is simple, stable, and highly predictable.
But what if the market had a built-in directional bias? What if it was designed to trend strongly in one direction with small, steady steps, and then experience sharp, sudden counter-movements in the other direction?
Welcome to Skewed Step Indices.
Skewed Step Indices are a powerful new type of synthetic index on Deriv that breaks the 50/50 rule. These indices use asymmetric step sizes and directional probabilities. This means they are algorithmically programmed to have a high probability (80% or 90%) of taking small, incremental steps in one direction, balanced by a low probability (10% or 20%) of making a sharp, aggressive movement in the opposite direction.
How Do Skewed Step Indices Work?
To trade Skewed Step Indices profitably, you need to understand their probability skew:
- Trending Phase (High Probability): The index has an 80% to 90% chance of making small, steady steps in the primary direction (e.g., small upward steps). This creates a very clean, persistent trend.
- Correction Phase (Low Probability): The index has a 10% to 20% chance of making a large, sharp step in the opposite direction. This acts as a sudden corrective spike that shakes out unprepared traders.
- Asymmetric Nature: Unlike regular Step Index where steps are equal, the step sizes here are completely asymmetric. The trending steps are small and frequent, while the corrective steps are large and sudden.
This creates a price chart that trends smoothly for several ticks, only to be interrupted by a sharp, sudden pullback.
Skewed Step Indices vs Classic Step Index
| Feature | Classic Step Index | Skewed Step Indices |
|---|---|---|
| Directional Probability | 50/50 Balanced | 80/20 or 90/10 Asymmetric |
| Step Size | Fixed 0.1 in both directions | Small steps for trends; large steps for corrections |
| Trend Type | Slow, range-bound patterns | Strong, persistent trends with sharp pullbacks |
| Risk Profile | Low | Medium-to-High (due to sudden pullbacks) |
| Best For | Range traders & beginners | Trend-following and breakout traders |
Trading Strategies for Skewed Step Indices
1. Ride the High-Probability Trend
Since Skewed Step Indices are programmed to trend 80% to 90% of the time, trend-following is highly profitable. You can enter trades in the direction of the bias (e.g., buying if the skew is upward) and ride the steady climb. The key is to take profits regularly before the sharp corrective movement occurs.
2. The Pullback Buy (Buying the Correction)
When the low-probability counter-move occurs, the price will drop (or spike up) rapidly. This is a classic “pullback” in a strong trending market. Instead of panicking, experienced traders use this sudden correction to enter the primary trend at a much better price, anticipating that the high-probability algorithm will resume.
3. Tight Trailing Stops
Because the corrective counter-moves are sharp and large, you should use trailing stop-losses to lock in profits as the trend progresses. A trailing stop ensures that when the sudden correction occurs, you exit with most of your gains intact.
Lot Sizes & Risk Management
Listen up: The sharp counter-moves on Skewed Step Indices can easily hit tight stop-losses or wipe out over-leveraged accounts. You must treat these indices with respect.
The minimum lot size on Deriv MT5 is 0.10.
- Never trade without a stop-loss.
- Ensure your stop-loss is placed wide enough to survive small fluctuations, but tight enough to protect your account from a full trend reversal.
- Start with the minimum lot size (0.10) to understand how the index behaves during the sharp correction phase.
Use our Lot Size Calculator to calculate your exact risk and keep your trading capital safe.
How to Start Trading Skewed Step Indices
Skewed Step Indices are exclusively available on the Deriv MT5 platform.
- Open a free demo account on Deriv.
- Set up a Synthetic Indices MT5 account.
- Search for “Skewed Step Index” in your MT5 Market Watch.
- Test your strategies on demo, master the timing of the corrective pullbacks, and switch to real trading when you are consistently profitable!
