I think your fine alternating top to bottom, thats the best of both worlds, just don't bottom feed all the time. I put some of me IMHO info below.
When you water from the bottom you stretch the roots and it makes them come out the holes in the bottom of the pail without growing a large root mass in the pail. Not what you want, you want your roots in the pail that's why from the top.
How much to use, depends on each plant, you do need to get the water down to the bottom and that's what you need to figger out. Your options are #1 pick up the pail when dry and again after watering, you do this enough and you will know what they need.
#2 get a moisture meter from any big box store 2 to 4$.
Just an observation but a 7 gal does not = 2 gal or 1 gal of water, each plant is different.
When I used 5 gal I always watered when dry and would water till I had 1 gal of runoff. I was using Pro-mix and you can't just pour water in one spot of the pot, you need to get good coverage all over the top to make sure it get everywhere. Put some pro-mix in a clear tall glass and pour some water in it you will see what I mean. I never had any algae problems? Do you have a fan gently blowing across the tops of the pails? If not that should fix that issue.
Do not let plants sit in excess water. The bottom layer of soil becomes saturated when a plant continuously sits in water. Any roots growing in this saturated layer will die. The soil available for plant growth is thus reduced.
Peace