Boom and Crash Indices Explained: Strategies, Risks and How They Work

Boom and Crash indices: Key takeaways

• What they are: Boom and Crash indices are synthetic indices created by Deriv that trade 24/7 and are priced by a random number generator, not by news or real markets.
• The number in the name: Boom 1000 spikes on average once every 1,000 ticks, about 86 times a day at one tick per second; roughly 59% of its 15-minute candles contain a spike.
• Spikes are random: a spike is never “due”, and no indicator can predict when the next one will come.
• Two ways to trade: drift-following wins often but loses big when a spike slips through the stop; spike-catching pays the drift while waiting for a 2R spike.
• Tested result: in a simulated six-month backtest on Boom 500, our M15 RSI divergence setup won 48.2% of 85 trades with a net profit factor of 1.48, profitable only because winners were twice the size of losers. Simulated results are not a reliable indicator of future performance.
• Risk first: size every trade so the stop costs 1–2% of the account, and check the broker’s regulation and contract specification, because versions of these indices differ between providers.

What are Boom and Crash indices?

Boom and Crash indices are synthetic indices designed to simulate sudden market shocks. Between shocks, price moves in small steps in one direction (the drift). At random moments it jumps hard in the opposite direction (the spike or crash).

Because no company, central bank or economic release sits behind the price, fundamental analysis has nothing to work with. Traders rely on price structure, probability and risk management instead. That last point matters more than any indicator: on an instrument driven by a random number generator, managing what you lose when you are wrong is the only part of the trade you fully control.

What does the number in Boom 1000 or Crash 500 mean?

The number is the average number of ticks between spikes. Boom 1000 spikes on average once every 1,000 ticks; Crash 500 drops on average once every 500 ticks. Deriv names every index in the family this way (Deriv). It is an average, not a schedule: real gaps between spikes are sometimes much shorter and sometimes several times longer.

Is a spike ever “due”?

No. Deriv describes each tick as carrying a small chance of a spike. If that chance is the same on every tick, the chance of a spike on the next tick is identical whether the last spike came 50 ticks ago or 5,000 ticks ago. The most expensive belief in Boom and Crash trading is that a long quiet stretch makes a spike more likely. It does not, and traders who add to losing positions on that belief are the ones who blow accounts.

Boom and Crash index list: spike frequency compared

Deriv’s Crash/Boom family runs from very frequent spikes (50, 150) to rare, larger spikes (900, 1000). Deriv added the 600 and 900 indices and the 150 indices in 2025 (Deriv). Not every index is offered on every platform or by every broker, so check your provider’s symbol list.

*Assumes one tick per second (86,400 ticks a day), the basis Deriv uses in its own Boom 900 example (Deriv). Volatility ratings from Deriv.

How often do Boom and Crash indices spike on each timeframe?

On Boom 1000 or Crash 1000, about 59% of 15-minute candles contain at least one spike, and half of all gaps between spikes are shorter than about 693 ticks. We calculated the table below from the published average frequency, assuming one tick per second and the same spike chance on every tick. Use it to judge how long a trade is likely to wait and how much drift it will absorb.

Two practical consequences follow. First, on Boom 1000 there is roughly a 37% chance of waiting more than 1,000 ticks for the next spike and a 14% chance of waiting more than 2,000, so a spike-catching stop must survive long drifts. Second, an M1 trade on Boom 1000 sees a spike only about one candle in seventeen, which is why one-minute “spike sniping” fails far more often than it works.

Boom 1000, Crash 1000, Boom 500 and Crash 500 explained

What is the Boom 1000 Index?

The Boom 1000 Index is a synthetic index that drifts down and spikes up on average once every 1,000 ticks. Its long drifts make it the clearest chart in the family for structure-based setups such as RSI divergence, but the same long drifts mean buyers waiting for a spike pay for that wait through the slow fall.

What is the Crash 1000 Index?

The Crash 1000 Index is a synthetic index that drifts up and drops sharply on average once every 1,000 ticks. It mirrors Boom 1000: spike-catchers sell and wait for the drop, while drift-followers buy and accept that one crash can erase many candles of gains.

What is the Boom 500 Index?

The Boom 500 Index drifts down and spikes up on average once every 500 ticks, twice as often as Boom 1000. Shorter drifts mean shorter waits for spike-catchers and more frequent stop-outs for traders selling the drift.

What is the Crash 500 Index?

The Crash 500 Index drifts up and drops on average once every 500 ticks. It suits traders who want more frequent events than Crash 1000 without the near-constant noise of the 50 and 150 indices.

Which Boom and Crash index is best for beginners?

Deriv suggests the 150 and 300 indices for beginners because spikes come more often and are comparatively smaller. From a trader’s seat, the better rule is to pick the index whose average wait fits the timeframe you can actually watch: 150–300 for M1–M5, 500–1000 for M15 and above. Whatever the index, start on a demo account and the minimum position size.

Is Crash 300 more volatile than Crash 900?

Yes. Deriv rates Crash/Boom 300 as very high volatility and Crash/Boom 900 as medium, and Crash 300 drops about three times as often (Deriv). Higher frequency means more stop-outs for drift trades and less waiting for spike trades.

Where can you trade Boom and Crash indices?

Boom and Crash indices originate with Deriv, which offers them on Deriv MT5, Deriv cTrader and Deriv Trader. Some other brokers now list their own algorithm-generated versions under similar names, for example ThinkMarkets’ Crash 1000 on ThinkTrader and MT5. Versions from different providers are not the same instrument, so spike size, costs and contract terms can differ even when the name matches.

Before opening an account anywhere, check three things: that the provider is regulated in your country, how the provider generates and audits its synthetic prices, and the full contract specification for the exact symbol you will trade.

Boom and Crash contract specifications to check before you trade

In MT5, right-click the symbol in Market Watch and choose Specification. These are the fields that decide whether a strategy is viable on your account size:

Boom and Crash trading strategies

Every Boom and Crash strategy is a choice between two trades: collect the slow drift and accept occasional spike losses, or pay the drift while waiting for a spike. Neither has a guaranteed edge on a random-number market; what separates them is how losses arrive.

Strategy 1: M15 RSI divergence spike-catch on Boom 500 or Boom 1000

This setup buys Boom when downside momentum fades, with a fixed 1:2 risk-reward. It uses the Relative Strength Index (RSI) as an alert and a candle close as the trigger.

1. Check context on H1. Skip the trade if H1 shows a steep, unbroken drift with no recent spikes; long drifts are where buy stops get ground down.
2. Find the divergence on M15. Price makes two clear lower lows while RSI (14) makes a higher low (bullish divergence). A MACD line crossing above its signal line is optional extra confirmation.
3. Wait for a bullish candle close. Enter only after a hammer or bullish engulfing candle closes on M15 (see candlestick confirmation below).
4. Set the stop-loss. Place the stop-loss just below the lowest low of the divergence.
5. Set the take-profit at twice the stop distance (2R). A spike usually carries price far beyond 2R in one move; locking 2R keeps the result consistent.
6. Size the position so the stop costs no more than 1–2% of the account (formula below).

Strategy 2: the mirror setup for selling Crash 500 or Crash 1000

The Crash version is the same setup upside down: on M15, price makes higher highs while RSI (14) makes a lower high (bearish divergence). Sell after a bearish engulfing or shooting-star candle closes, place the stop just above the highest high of the divergence, and target 2R. On Crash, the drift works against a short, so the same patience and stop discipline apply.

Strategy 3: drift-following, and why its stops slip

Drift-followers sell Boom or buy Crash and aim to collect the slow move between spikes. The win rate is high, but the losses are large and often worse than planned, because a spike can jump straight through the stop-loss and fill at a much worse price. If you trade the drift, size the position on the assumption that the stop will slip, keep holding times short, and never move the stop further away to “give it room”.

M1 spike-sniping and scalping: what changes

On M1 a single Boom 1000 candle contains a spike only about 6% of the time, so one-minute spike entries lose small amounts often and depend on rare, large wins. It works better on faster indices (150, 300), where an M1 candle holds a spike 18–33% of the time. Spreads weigh more heavily on short trades, so test M1 ideas with costs included before trading them live.

Backtest results: M15 RSI divergence on Boom 500

Our six-month manual backtest of Strategy 1 on Boom 500 produced 85 trades with a 48.2% win rate and a net profit factor of 1.48 after trading costs. At a fixed 1:2 risk-reward the strategy breaks even at a 33.3% win rate, so the result was profitable despite losing more trades than it won.

Read this as evidence that the risk structure is sound, not as proof that RSI predicts spikes. On a market priced by a random number generator, 85 trades cannot separate a real edge from luck. Run your own test on a different period before trusting it with capital.

How to size positions on Boom and Crash indices

Size every position so that hitting the stop-loss costs a fixed 1–2% of the account. Use this formula, taking the value per point from the symbol’s contract specification:

Worked example: a $500 account risking 1% can lose $5 on the trade. With a 25-point stop and a value of $1 per point per lot, the position size is 5 ÷ (25 × 1) = 0.20 lots. If the platform’s minimum volume is larger than the result, the trade is too big for the account: widen nothing, skip the trade. For more detail, see our guide to position sizing.

Can you trade Boom and Crash with $10?

Often you can open a trade, but you usually cannot do it safely. With $10, a 1% risk is $0.10, and the minimum volume on most Boom and Crash symbols will put far more than that at stake once the stop distance is included. Practise on demo until the account is large enough for the minimum lot to fit within 1–2% risk.

Managing slippage on Boom and Crash spikes

Technical analysis cannot remove slippage: the gap between the stop price you set and the price you actually get. On Boom and Crash it hits hardest when a spike moves against an open position, which is the normal way drift-following trades lose.

• Know which side of the spike you are on. Spike-catching trades lose to the drift, so their stops rarely slip much; drift-following trades lose to the spike, so their stops can slip badly.
• Size for the slipped loss, not the planned one. If past spikes jumped 3× your stop distance, size the position as if the stop were 3× wider.
• Avoid stops that sit inside normal noise. A stop tighter than recent candle ranges gets hit by ordinary movement before any setup plays out.
• Keep drift trades short. The longer a drift trade stays open, the more spike exposure it accumulates.

Entry confirmation: the role of candlestick patterns

A closed reversal candle is the trigger that turns an RSI alert into a trade. Entering before the candle closes means trading a signal that may disappear within the same 15 minutes.

Bullish reversal candles used to confirm Boom buy entries; the bearish mirror images confirm Crash sells.

Do indicators, spike detectors and signal groups work on Boom and Crash?

No indicator can predict when the next spike will happen, because spike timing comes from a random number generator. Deriv itself notes that apparent historical patterns in most synthetic indices are coincidental, since there is no order book behind the price. Indicators are still useful for something else: defining a consistent, testable entry rule and a logical stop.

• RSI and MACD: useful as a rule that tells you when to look, not as a forecast.
• “Spike detector” indicators and EAs: treat any claim of predicting spikes with suspicion; demand a verified track record on live accounts, not screenshots.
• Signal groups: check whether results include every losing signal and realistic slippage before following anyone.
• Charting: use the provider’s own platform chart for the exact symbol you trade; other providers’ indices with the same name do not share the same price feed.

See our overview of market analysis tools for general-purpose options.

How to read a Boom or Crash chart

A Boom or Crash chart can tell you the drift’s pace and where your stop belongs; it cannot tell you when the next spike will come. When you look at a chart and ask “buy or sell?”, answer these three questions instead:

1. Which phase is price in? A steady staircase is drift; a single tall candle is a spike.
2. How far is the logical stop? The nearest structure low (Boom buy) or high (Crash sell) sets the stop and therefore the position size.
3. Does a valid setup exist? If your written entry rule is not met, the answer is “no trade”, however likely a spike feels.

What is the best time to trade Boom and Crash indices?

There is no best session. Boom and Crash indices trade 24/7, are unaffected by news, and their spike probability is the same at 3 a.m. on Sunday as at the London open. The best time to trade them is when you are rested and able to follow your plan; fatigue causes more losses on these instruments than timing does.

Common Boom and Crash trading mistakes

• Believing a spike is “due”. A long drift does not raise the chance of the next spike.
• Overleveraging. Large lot sizes turn one slipped stop into a blown account.
• Averaging down. Adding to a losing spike-catch during a long drift multiplies the loss.
• Moving the stop. Widening a stop after entry breaks the risk-reward the strategy depends on.
• Emotional trading. Fear and greed show up as skipped valid setups after a loss and oversized trades after a win.
• Trading without written rules. Entry, stop, target and size should be decided before the order, every time.

How to test a Boom and Crash strategy before trading live

1. Write the rules down precisely enough that another trader would take the same trades.
2. Backtest manually over at least six months of chart history on your chosen timeframe, logging every setup, including the ones you would rather skip.
3. Include costs: spread, swaps and realistic slippage on spike-side stops.
4. Collect at least 100 trades before drawing conclusions; fewer leaves a wide range of possible true win rates.
5. Demo trade live for at least a month to test discipline in real time without risking money.

Compare the result with other approaches in our guide to trading strategies.

Pros and cons of trading Boom and Crash indices

Boom and Crash indices: frequently asked questions

What is a Boom and Crash index?

A Boom and Crash index is a synthetic index that drifts slowly in one direction and spikes sharply in the other. Boom indices drift down and spike up; Crash indices drift up and drop down.

What does the number in Boom 1000 mean?

It is the average number of ticks between spikes. Boom 1000 spikes on average once every 1,000 ticks, but individual gaps vary widely.

Who created Boom and Crash indices?

Boom and Crash indices were created by Deriv. Some other brokers now offer their own algorithm-generated versions under similar names.

Which Boom and Crash index is best for beginners?

Deriv suggests the 150 and 300 indices because spikes are more frequent and smaller. Match the index to the timeframe you can watch, and start on a demo account.

Is Crash 300 more volatile than Crash 900?

Yes. Deriv rates Crash 300 as very high volatility and Crash 900 as medium, and Crash 300 drops about three times as often.

Can you predict Boom and Crash spikes?

No. Spikes are generated randomly with a fixed average frequency, so a spike is never “due”. Indicators can define entry rules but cannot forecast spike timing.

Can I trade Boom and Crash with $10?

Usually not safely. Minimum lot sizes typically put far more than 1–2% of a $10 account at risk, so practise on demo until the minimum lot fits your risk limit.

What is the best time to trade Boom and Crash indices?

There is no best session. The indices run 24/7 and ignore news, so trade when you are rested and able to follow your plan.

Where can I trade Boom and Crash indices?

Deriv offers them on Deriv MT5, Deriv cTrader and Deriv Trader. Some other brokers list similar products; always check regulation and the contract specification of the exact symbol.

Are Boom and Crash indices rigged?

They are generated by a random number generator, not by news or order flow. Whether a provider’s prices are fair depends on its regulation and how its generator is audited, so check both before trading.

The bottom line

Boom and Crash indices reward traders who treat them as probability instruments, not prediction puzzles. Know the average spike frequency of the index you trade, choose whether you are paid by the drift or the spike, size every position for the loss you will take when wrong, and test any setup with costs included before going live.

Sources

• Deriv Traders Academy: Crash 150 and Boom 150 indices
• Deriv: Crash/Boom family, platforms and volatility ratings
• Deriv: Crash/Boom 600 and 900 on Deriv cTrader
• ThinkMarkets: Crash 1000