Table of Contents
The Touch/No-Touch trading strategy with Deriv offers a unique approach to binary options trading, allowing you to predict whether the market will reach specific price levels or not.
Deriv Touch/No-Touch trading technique is simple. All you need to do is simply predict whether the market touches a particular level or not, within a selected timeframe or time duration. Easy, isn’t it? Then why do traders fail?
Do you know the basics?
Suppose Gold (XAUUSD) is currently bullish, trading at $1550, and you predict that it will touch $1600 within the next 24 hours, you click ‘touch‘. Or it can be the opposite, if XAUUSD is falling, the trend is bearish, and you are predicting that it will not touch the $1600 level within the next 24 hours, you click ‘no-touch‘.
Sounds simple, right?! Yet in reality, traders fail a maximum number of times and lose their money. It is not simple if you don’t have the basic knowledge of how the market moves, how price action works, what the real market trend is, and many more. This side of the Deriv Binary options is for advanced traders, but that doesn’t mean you can’t win. It has a higher winning rate if you plan it strategically.
The Touch/No-Touch trading involves setting a barrier at a specific price level, and predicting whether the market will touch, or avoid this level, within a chosen timeframe. The potential return on these trades can range from 200% to 300%, especially when betting against the market’s direction.
Know the Fundamental Trade Setup of Touch/No-Touch
- Choosing the Barrier: Set a barrier in the positive or negative range. For instance, if the current market price is $10 and you set a +1.25 barrier with a no-touch option, the no-touch threshold will be $11.25.
- Trade Expiry Time: Select an expiry time ranging from 5 ticks to 365 days. A trade is successful if the market avoids touching the set barrier within this period.
- Stake or Payout: Determine the investment amount per trade or the desired payout upon a successful trade.
Curious about how much you can earn from it?
Now, let’s talk about the payout with this kind of trade. If your prediction has the lowest winning rate, then it has the highest payout or ROI (Return on investment); if your prediction has the highest winning rate, then you will have the lowest payout or ROI.
Considering the previous example, imagine that XAUUSD is moving up with a good bullish trend, and you predict that the market will touch the $1600 mark within the next 24 hours (if the trend doesn’t change). In this case, you will get a lower return, around a 30%-35% return on your investment (ROI), this is because the winning rate is higher in this case. Now, if you predict that no matter how much the XAUUSD trend stays bullish, it will not touch $1600 by tomorrow (next 24 hours), then in this case, ROI will be 270%-300%. Triple money, because it has a higher chance of losing.
Symbols Available to Trade with Touch / No Touch:
Deriv Touch/No-Touch is available for selected synthetic symbols. Intraday quick trading or trading with a tick chart option is available with synthetic pairs only. For forex and others, the Touch/No-Touch minimum duration starts with ‘1 day’.
| Symbol | Available Time Frame |
|---|---|
| Forex and other Real Market Symbols | Min 1 Day to 1 Month |
| Synthetic Pairs | 5 ticks to 1 Day |
Steal this ‘No-Touch’ Strategy! (and stop losing money)
We can’t stress enough how important it is to have an understanding of basic price action and trend analysis based on candlesticks. It is kinda mandatory to first learn the basics of trading and get a powerful trend indicator to master this Deriv trade type. Here we have used a popular Metatrader indicator- the Hydra Trend Rider, to demonstrate trading with Deriv Touch/No-Touch.
What you need for this trade setup:
- Deriv MT5 demo account.
- Deriv Trader (DTrader) account (on the Deriv website).
- Hydra Trend Rider Metatrader indicator.
How to Start?
Step 1: Open a demo Deriv MT5 account here.
Step 2: Install Hydra Trend Rider from here. (Read the product description carefully before proceeding)
Step 3: Log in to the Deriv website and click on ‘DT’ (Deriv Trader) to open the trading platform.
Symbol Selection Strategy using Hydra
We will use Deriv MT5 data using Hydra Trend Rider to track the trend and place orders in Deriv’s web platform (DTrader) for Touch/No-Touch trade type. Hydra gives instant market insights at a glance for fast fast-moving volatility index of Deriv. Using a lagging indicator will bring more loss than profit.
Place the Hydra Trend Rider (let’s call it Hydra) on the MT5 chart. Check for the most trending synthetic pair that supports Touch/No-Touch trade type. Simply drag and drop the symbol from the MarketWatch list to the MT5 chart to check the trend of each of the supporting synthetic pairs.
Here’s a quick tip on what to look for when choosing a symbol with Hydra:
- Real-Time Multiple Timeframes dashboard signal – to confirm trend strength by analyzing multiple timeframes in real-time.
- Clearly generated ‘Entry Signals’ – Buy/Sell arrows indicate optimal trade opportunities.
- Trend detection through Hydra Line – A color-changing trend line helps determine the trend direction for trend confirmation. Green = bullish; Red = bearish;
- Identify trend corrections – The Gray Hydra line and gray MTF dashboard detect price corrections, helping you save money from avoiding wrong entries, and also plan your re-entries.
Trade Execution
We have found a suitable Volatility Symbol- Volatility 75 Index with a good trade opportunity with perfect momentum. We chose this symbol because it met all the Hydra criteria. The Hydra Trend Line is red. As per the MTF Hydra Dashboard, all the timeframes, from 1M to MN, trend signal is strongly bearish. Since the No-Touch strategy has a higher ROI, we will trade the No-Touch strategy with the Hydra Trend Rider now.
No-Touch Trade Settings:
1. Barrier: We choose a Barrier that would yield us a payout between 120% to 125%. (You can adjust the barrier by dragging the barrier line as per your risk appetite.)
2. Duration: 3 minutes. This is because a shorter time means a higher fluctuation rate, leading to financial loss. A minimum of 3 minutes is a good starting point for the price to have its time and space to react. You can choose any time duration between 3-5 minutes based on your patience level and risk appetite.
This gave us a 124.9% return on investment for the No-Touch option. We predicted that the market would not touch 94300 within the next 3 minutes; that was our contract.
Once done with the trade settings, place your trade by clicking the No-Touch button.
What if you want to close the trade early?
Even though the market was moving in our direction, we had an option to close the trade early by selling the trade contract with the accumulated profit we had just made.
Since the market was moving in our direction, the trend was still bearish, and chances for the market to go up were less likely, therefore, we held onto this trade.
The Result:
“Patience is bitter, but its fruit is sweet.” – Aristotle
Eventually, the market moved lower following the Hydra line, and the price did not touch 94300. We amazingly won the trade with an ROI of 125% on the expiry of this contract.
Secret Hydra Strategy that will bulletproof your loss:
This secret Hydra strategy will give you a higher ROI with a lower chance of failing. When you combine the power of the Hydra Trend Signal along with the basic knowledge of candlesticks and price actions, you can trade the risky Deriv No-Touch trade type confidently. The secret strategy is to closely monitor the Hydra trend on a lower timeframe on the MT5 chart; if you are trading 3 minutes on DTrader, check Hydra 1-minute on MT5.
A lower timeframe gives an early signal of any trend change. If you find the trend is changing and the hydra line turning gray, Deriv gives you an option to ‘sell’ your trade with the profit you made before contract expiry. This option closes when 50% of your time duration has passed. Which is a good time window to decide whether you want to hold the trade or not, if you see the Hydra line changing color.
Why does this strategy work?
Hydra Trend Rider is a Trend-Following indicator – No-Touch Thrives in Stable Trends
-
The Hydra Trend Rider indicator is designed to identify strong directional trends and avoid choppy markets.
-
Once a trend is established, the probability of the price reversing sharply enough to touch an opposite barrier is relatively low.
-
No-Touch trades capitalize on this by setting a barrier against the trend, betting that the price won’t retrace far enough to hit it.
📌 Example: If Hydra confirms a strong uptrend, placing a No-Touch BELOW the entry point makes it likely that the price won’t drop and touch that level before expiry.
You Only Need the Price to Avoid a Level, Not Reach a Target
-
In Touch options, the price must reach or exceed a certain level, requiring momentum.
-
With No-Touch, you win as long as the price doesn’t touch the level; this is easier to achieve in stable trends.
-
Hydra’s trend signals help filter out false reversals, making it easier to place No-Touch trades with more confidence.
📌 This lowers the performance pressure on price movement, increasing win probability.
Hydra Reduces Whipsaws and Noise
-
Hydra Trend Rider is optimized to filter out market noise and smooth out entries.
-
This is crucial for No-Touch because the biggest threat is a random price spike that hits the target.
-
By only signaling trades in clean, strong trends, Hydra minimizes choppy periods that often ruin No-Touch trades.
Barrier Placement Is More Flexible in No-Touch
-
With Hydra confirming trend direction, you can set the No-Touch barrier:
-
Far enough from support/resistance to avoid natural reversals.
-
In the opposite direction of the trend, leveraging momentum.
-
-
This gives you more strategic control over risk compared to fixed expiry or strike positions in other options.
Works Well with Time-Decaying Assets
-
No-Touch trades benefit from time decay. The longer the price avoids the barrier, the closer you get to profit.
-
Hydra helps ensure that you’re entering when trends are less likely to reverse, so you can use shorter expiries to increase trade frequency and reduce exposure.
Psychological Advantage: You Profit from “Nothing Happening”
-
Unlike traditional trading, where action is required, in No-Touch, you win even if the market just drifts.
-
Hydra helps you find those moments where the trend is strong and price is unlikely to pull back aggressively, which suits this logic perfectly.
Summary Table of the Hydra strategy advantage:
| Feature | Hydra Trend Rider Contribution | Benefit to No-Touch Trade |
|---|---|---|
| Trend filtering | Identifies clear market direction | Helps place a barrier on the weak side of the move |
| Noise reduction | Reduces false signals and spikes | Decreases the chance of accidental barrier hits |
| Entry confirmation | Confirms momentum before trade | Increases confidence in the trade setup |
| Flexible barrier placement | Allows custom distance from price | Tailors risk-to-reward based on volatility |
| Time-decay synergy | Market favors time decay in consolidation/trend | Shorter expiry trades benefit more from Hydra data |
If you’re using the Hydra Trend Rider properly, waiting for confirmed trends, clean signals, and avoiding ranging markets, then No-Touch trades on Deriv offer a high-probability strategy with clear technical backing. The nature of Hydra’s filtered signals aligns perfectly with the “no surprise reversal” condition needed for No-Touch trades to succeed.
Bonus Feature: Hydra Alert System – Key Benefit for Deriv Trading
The Hydra Trend Rider’s alert system ensures you’re instantly notified when a strong trend is confirmed. This is crucial for not only No-Touch trading on Deriv, but also all synthetic pairs and even forex pairs because:
- You can act immediately when a high-probability setup appears.
- Alerts help you avoid overtrading, only entering when the market conditions match your No-Touch criteria (for even higher duration entry on forex pairs).
- Great for timing entries on short expiry trades, where delay can reduce win chances.
In short, the alert system helps you stay disciplined and catch only the best No-Touch opportunities, even if you’re not watching the chart 24/7.
Download the Hydra Trend Rider here.
Why You Should Start with a Demo Account First
- Zero Risk: Learn the strategy without risking real money while testing the Hydra + No-Touch combo.
- Master the Timing: No-Touch trades require precise entries, demo helps you practice until entries feel natural.
- Build Confidence: Consistently winning in demo builds the confidence needed to trade live with discipline.
- Avoid Emotional Mistakes: Demo helps you control emotions like fear or greed that often ruin real trades.
- Fine-Tune the Strategy: You can adjust barrier levels, expiry times, and alerts without pressure.
Move to a real account only once your demo results are stable and consistent, ideally with a 60–70%+ win rate over dozens of trades.
💡 Real talk: Even great tools like Hydra won’t help if you’re rushing or trading emotionally. The demo is your safe space to mess up, learn, and improve. Use it wisely.
