Do really simple algorithms (EMA, mean reversions, Bollinger, etc) still work effectively?
u/diditevenshake ·
Reddit — r/algotrading
· June 05, 2026 at 12:33
· ⬆ 27 pts
· 💬 33 comments
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AI Summary
Summary
The post is a beginner asking whether simple algorithmic trading strategies (EMA, mean reversion, Bollinger Bands) remain profitable compared to complex algorithms.
The author expresses uncertainty about backtesting and forwardtesting, with a modest goal of “make a dollar a day.”
Quality assessment: Noise – the post is a general beginner’s question with no data, analysis, or specific trade ideas.
Score27
Comments33
Upvote %92%
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First off, I am new to algorithmic trading (I've been obsessively learning basics), so my ignorance is pretty up there. I am a sentient boulder, if you will, so I apologize if this question is dumb. That said, I was wondering about the efficacy of 'basic' trading algorithms. Do they still yield positive returns, or are complex algorithms always superior? Do I need a 10000 line code behemoth to be somewhat profitable? I'm still in the process of fully understanding backtesting (and then forwardtesting).
Also, not sure if relevant, but I'll add that I don't have a 'get rich quick mentality', but rather 'make a dollar a day' kind of outlook.