In general, online signature capturing devices provide outputs in the form of shape and velocity signals. In the past, strokes have been extracted while tracking velocity signal minimas. However, the resulting strokes are larger and complicated in shape and thus make the subsequent job of generating a discriminative template difficult. We propose a new stroke-based algorithm that splits velocity signal into various bands. Based on these bands, strokes are extracted which are smaller and more simpler in nature. Training of our proposed system revealed that low- and high-velocity bands of the signal are unstable, whereas the medium-velocity band can be used for discrimination purposes. Euclidean distances of strokes extracted on the basis of medium velocity band are used for verification purpose. The experiments conducted show improvement in discriminative capability of the proposed stroke-based system.