Best Algorithmic Trading Strategies for Beginners in 2026

Algorithmic trading uses computer programs to automatically buy and sell stocks and shares. It’s becoming very popular these days because it’s fast and free from emotions. In this article, we’ll tell you about the best algorithmic trading strategies that beginners can use.

Algorithmic trading is a computer program that trades automatically for you. For example, you set a rule like – “When the 50-day average goes above the 200-day average, buy 100 shares”. Then the computer itself watches the market and places orders. You don’t need to sit and watch the screen all day.

24/7 Trading: Computer works day and night
No Emotions: No effect of anger or fear
Fast Execution: Trades happen in seconds
Multiple Markets: Can trade in many places at once

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Basic Coding: Learn Python language
Market Knowledge: Basic understanding of stocks and shares
Patience: Results take time to come
Math Skills: Should know simple calculations

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First think of a strategy
Put it in a computer program
Test it on old data
Practice before using real money
Then start live trading

This is the simplest strategy. Here we follow the trend of the stock. If the stock is going up, we buy, and if it’s going down, we sell. Moving average is a good tool for this.

This strategy believes that every stock comes around an average price. If the stock goes too high, it will come down, and if it goes too low, it will rise. We benefit from this.

Sometimes the same stock is available at different prices in different markets. We buy from the cheap market and sell in the expensive market. The difference becomes our profit.

Short Term: 1 minute to 1 hour (fast trading)
Medium Term: 1 day to 1 week (swing trading)
Long Term: 1 month or more (position trading)

Less chance of mistakes
Saves time
Emotions remain under control
Can do multiple trades at once

Computer can fail
Wrong strategy can cause losses
Sudden changes in market are risky
Requires more money initially

Trading real money without testing
Focusing on only one stock
Taking too much risk
Changing strategy frequently

Don’t lose more than 2% in one trade
Always use stop loss
Invest money in different stocks
Set daily targets

https://www.python.org/ : For coding
https://www.backtrader.com/: For testing
https://zerodha.com/: For trading
https://consent.yahoo.com/: For data

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Select a simple strategy
Write code in Python
Test on old data
Check results
Keep improving

Learn basics
Start small
Practice daily
Learn from experts
Never give up

90% traders lose money. That’s why you should always keep risk under control.

Trend following is best for beginners. It’s simple and works

No, no trading is 100% profitable. Losses do happen.

Take online courses, read books, practice. It takes time but you can learn.

Algorithmic trading takes time to learn but when you learn it, it’s very beneficial. Start small, practice, and never trade without risk management. Success might take time, but don’t lose heart.