For the realization of compact and lightweight digital hydraulic cylinder drives for exoskeleton actuation the hydraulic binary counter concept was proposed. This counter principle is based on hydraulically piloted switching valves which feature a hysteretic response with respect to the pilot pressure. In first prototypes of that counter bistable mechanical buckling beams realized the hysteretic response. Their performance suffered from high friction in the hinges and high local stresses. Furthermore, they require tight manufacturing tolerances not only of themselves but also of their bearing structure. In this paper, the usage of a permanent magnet concept to realize the hysteresis function in an alternative way is studied. The valve spool is made of a ferromagnetic material and is attracted or repelled by a permanent magnet made of a Neodymium-Iron-Bor. The expected benefits are lower friction, lower demands on manufacturing tolerances, and an easier assembly of the valve. To find an advantageous embodiment of this functioning principle ring or disc shaped magnets of different sizes are analyzed. The magnetic forces exhibited by these different magnetic circuit designs are simulated with the Magnetic Finite Element code ‘FEMM’. The quasi-static magnetic forces at different spool positions are computed. Magnetic saturation and remanence are considered in this analysis. The aim is to achieve the required force on the piston and, thus, ensure the valve’s functionality. At the same time, however, the valve should be designed as compact and light as possible. The Finite element simulations are compared with an analytical model which provides a compact understanding of the influence of the design parameters on the functional and non functional performance criteria.