top of page

#207: Can Algo Trading Beat the Market?

Investing in an index like the S&P 500 may seem like a safe bet, but it can often bring about huge drawdowns for index investors.

Is there a better alternative? Can algorithmic trading really beat the market?

In this episode of Breakout Trading Answered, Mr. Breakouts compares the return profile of index investing with an algorithmic trading strategy. Which one is better and why?

Here are some other topics we discuss in this episode:

  • How algorithmic trading works and how it differs from investing in an index,

  • The returns and drawdowns of index investing over the last 5 years,

  • Comparing investing in the S&P 500 vs algorithmic trading strategies,

  • Can algorithmic trading beat the market, even with slippages and poor execution,

  • And much more.

Watch the replay of our latest episode:

Episode Highlights:

01:03 Investing in the S&P 500

04:06 Algorithmic Trading

08:38 Backtesting Algorithmic Trading Strategy

09:41 Algo trading vs. S&P 500

11:03 Can Algo trading beat the market

19:09 Tips and tricks for algo trading

Tomas and the Systems On The Road team


  • YouTube
  • LinkedIn
What others are saying

"Tomas is one of the most creative traders I know. He is able to generate unique trading ideas and elegant solutions to system development challenges."

Andrew Swanscott,

"Tomas has been a professional trader for more than a decade and I have had the privilege of monitoring his accounts in action since 2006. His systems are performing as some of the best I have ever monitored and executed. I have been in the trading industry since 2002 and worked with many developers from all over the world. Tomas is definitely the one to consider."

Martin Lembak,

Systems Trading Expert,


"Tomas is a professional trader, who for the last 10 years has specialized in developing trading systems. We have been tracking his trading systems for about 5 years and they generally show very robust, stable and above average performance. Striker is pleased to work with someone like him - a real professional with enthusiasm and deep knowledge of trading."

William Galwas, President Of Striker Securities, Inc 

"Personal consultation with Tom helped me to re-evaluate the complexity of my robustness testing and optimization processes. Plus, it has helped me with a specific plan on how to take things forward. It has given me some great ideas on how to avoid overfitting and make my testing more robust and provided tips on low hanging fruit in terms of the best markets to trade for intraday/short-term breakouts."

Craig Peters,

semi-advanced trader,

United Kingdom 

"Tom's approach to Automated Trading Strategies design, tests of robustness and portfolio diversification is really unique. He has been a professional trader for many years and the depth of his understanding of Breakout strategies and Market Internals is hard to find elsewhere."

Antonin Fisher,

Hedge Fund Manager,

Czech Republic 

"Tom´s systems and trading approach do really work and can bring good, stable and reasonable returns. I can highly recommend him as a teacher."

David Hruby,

Trader, Czech Republic 

Get Social With Tom
Author: Tom Nesnidal (more about me
bottom of page