From your post I infer that your rudder
spends the sailing season in the water which allows algae to grow on it. Most varnishes do not hold up too well in the marine environment due to the sun's UV rays. If you can take your rudder off when not in use that would greatly reduce algae growth. If doing this would be inconvenient or cumbersome I would suggest that instead of varnish you try Cetol as a finish. Put on as many coats as you have the patience for. Many people on this forum use Cetol on exterior wood and find that it holds up for several years without maintenance. I am not sure how well Cetol will hold up if left submerged though. If you are not married to the look of the wood grain I would suggest coating the whole thing with epoxy and fine glass cloth, fairing smooth and painting with the anti-fouling paint of your choice below the water line. At the end of each season check rudder for water intrusion as the wood will certainly rot if it is not kept dry.