The Best Algo is the One You Actually Understand

Introduction

Most people who search for the best algo expect a silver bullet—a little snippet of code or a strategy that reliably spits out profits or solves problems faster than everyone else.

This belief—that there’s a single, universal “best”—is comforting. It’s also wrong.

If you look closely, every breakthrough algorithm is best only in the context of who uses it, when, and how.

What Is an Algorithm, Really?

At its core, an algorithm is a process. A repeatable set of steps to turn input into output.

Google’s PageRank was an algorithm. So was the original quicksort. In trading, an algorithm can be as simple as “buy the index when it drops 2% intraday” or as complex as a machine learning ensemble that ingests a hundred signals.

The word algo sounds more sophisticated than recipe, but they’re almost the same thing.

Why Chasing The “Best” is Often a Distraction

People want an edge, so they assume the best algo must be the most complicated one. That’s why you see so many pitches promising “AI-powered trading bots” that nobody can explain.

But most consistently profitable traders I’ve met prefer simpler algorithms they can stress-test, tweak, and understand intuitively.

The best algo is rarely the most esoteric. It’s the one you trust enough to execute without second-guessing.

Examples of Trading Algorithms That Have Worked

Here are a few algorithms that, at different times and for different people, earned the label “best”:

Mean Reversion Algos: Buy when price falls far below a moving average.

Momentum Algos: Ride trends when volume spikes.

Market-Making Algos: Continuously quote bids and asks to earn the spread.

Event-Driven Algos: React instantly to earnings releases or macro news.

Each was the best in a specific era, in specific markets, for specific traders.

What Makes an Algo “Best” For You

Three questions can guide you better than any Google search:

Do you understand it?
If you can’t explain it in plain language, you won’t trust it when it loses money.

Can you measure it?
Backtest it. Track its drawdowns. Know its limits.

Can you adapt it?
Markets change. The best algo evolves with them.

The Future of Algos

We’re entering an age where algorithms don’t just automate decisions—they adapt, self-correct, and sometimes collaborate. That doesn’t mean everyone needs a PhD in reinforcement learning.

It does mean you’ll need to keep learning. The best algo five years from now might look obvious in hindsight, but only to the people who experimented early.

A Subtle Invitation

At Stratzy, we believe in giving traders not just access to prebuilt algos, but the context to understand why they work. We’ve built a platform where you can explore dozens of algo strategies, see their performance transparently, and learn how to adapt them to your style.

Because in the end, the best algo isn’t the one someone else tells you about—it’s the one you make your own.

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