Statistics don’t care about opinions.
When it comes to building a robust portfolio, finding the 7 best algo trading strategies for beginners is the first step toward trading based on data rather than gut feeling. Most trading advice found online is impossible to backtest, which is exactly why so many newcomers struggle to find consistency.
By shifting your focus to statistics and clear rules, you can move away from “stories” and toward a system you can actually trust.
Here are 2 of the 7 strategies we tested. The other 5 are linked to at the end of this newsletter.
TQQQ and BTAL Annual Rebalancing
For those looking for a hands-off approach, this strategy requires just one trade per year. By rebalancing to 33% TQQQ (a 3x leveraged Nasdaq-100 ETF) and 67% BTAL (an anti-beta ETF) every January, you balance aggressive growth with crash protection.
Since 2012, this combination has yielded an 18% annual return, beating the Nasdaq in 8 of the last 13 years. Note that TQQQ is highly leveraged, so fees and volatility must be considered.
The Choppiness Index Filter
Created by Bill Dreiss, the Choppiness Index identifies when a market is sideways (choppy) or trending.
To avoid being caught in sideways “whipsaws,” this strategy only enters a long position when the 15-day Choppiness Index is below 50 (indicating a range-bound market), and the 2-day RSI falls below 20.
This selective approach yields an 8.5% annual return despite being in the market only 15% of the time.
Read or see the rest (5 more)of the algo trading strategies below on X or YouTube.
Other Articles
We have also published other articles during the week:
👉 100 Free Trading Strategies (New Strategies Added Frequently)
Oddmund & Håkan
