Did you know that retail algorithmic trading has grown by over 50% in just the past three years? As we head into 2025, more and more beginners are looking to capitalize on automated strategies but it is way harder than most people think. This blog post will walk you through five simple algorithmic trading strategies from classic MACD setups on the Nasdaq to a trend-following approach on Treasury notes, so you can start building your own trading portfolio for 2025.
1. MACD Crossover on Nasdaq
Why It Works
This strategy focuses on the Nasdaq market and leverages the Moving Average Convergence Divergence (MACD) indicator to pinpoint clear shifts in momentum. By coding a rule to enter when the MACD line crosses above zero (or its signal line), you effectively let the market tell you when bullish sentiment is taking hold.
Key Takeaway
Momentum Confirmation: The MACD crossover acts as a straightforward “buy” or “sell” signal.
Risk Control: Adding protective stops can help limit drawdowns if momentum quickly reverses.
Read More: MACD Cross on Nasdaq
2. Turnaround Tuesday Strategy for Major Indices
Why It Works
Based on the idea that market participants often recalibrate after Monday’s trading session, “Turnaround Tuesday” exploits short-term swings in major indices. When Monday’s momentum runs out or reverses, Tuesday can offer prime entry opportunities as traders shift focus.
Key Takeaway
Short-Term Patterns: This strategy zeroes in on weekly cycles, offering clear rules for when to enter and exit on Tuesdays.
Consistent Setups: If you like a routine, Turnaround Tuesday provides a predictable schedule to watch for signals.
3. 10-Day Momentum on Nasdaq
Why It Works
Momentum strategies assume that a strong price move is more likely to continue than to reverse immediately. By using a 10-day lookback, this algorithm captures medium-term trends, striking a balance between over-frequent day trading and longer-term position holding.
Key Takeaway
Quantifiable Indicator: You measure performance over 10 days, adding a repeatable, rules-based approach.
Scalable: Works well on other assets if you tweak the parameters and confirm the signals with backtesting.
Read More: 10-Day Momentum on Nasdaq
4. MACD Hook on Gold
Why It Works
Gold is often influenced by geopolitical events and risk sentiment, but it also follows technical patterns. The MACD Hook strategy looks for a specific “hook” shape in the MACD lines, an early indication of a potential trend shift or continuation.
Key Takeaway
Gold-Focused: If you’re keen on commodities, this strategy helps you tap into gold’s unique volatility.
Visual Clarity: The “hook” in MACD can be easier for beginners to spot than more complex patterns.
Read More: MACD Hook on Gold
5. A Simple Trend-Following Strategy for 2-Year Treasury Notes
Why It Works
Even though Treasury notes might not be the first choice for every retail trader, they offer stability and lower volatility compared to equities or commodities. A simple trend-following approach can help traders ride incremental but steady price moves in the bond market.
Key Takeaway
Lower Volatility: Ideal for beginners looking to minimize wild price swings.
Systematic Approach: Trend-following rules can be easier to automate, letting you learn programming basics without dealing with extreme market fluctuations.
Final Thoughts
These five strategies, from MACD-based momentum plays on Nasdaq and Gold to weekly patterns (Turnaround Tuesday) and trend-following in Treasury notes offer a well-rounded starting point for beginners in 2025.
Remember, no single strategy guarantees profits, and proper risk management is crucial. Always conduct backtesting, robust testing and consider paper trading before going live. If you’re ready to dive deeper or want to see the code behind these concepts, explore more of our algorithmic trading strategies HERE.
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Happy Trading!
FAQ
Q: Am I free to use this strategy however I want?
A: Sure! But we're happy if you refer to our website and keep the creator's name in the code.
Q: I'm using another platform, can you write the code in another language?
A: No, sorry. We might add code in more languages later to the website, but until then, we recommend you try ChatGPT or something similar to help you rewrite it.
Q: Why does my backtest look different when I run the code?
A: The strategy might give different backtest results for several reasons, like added spread or fees, the wrong time-zone settings, or that you're using another type of contract/instrument type.
Q: Will I make money if I run this strategy live?
A: We don't know. We're not financial advisors, we're just traders sharing our ideas.