Why I Don't Like to Build Trading Bots
Meaning vs extraction
Building products creates something new that didn’t exist before. It compounds usefulness. Trading mainly redistributes existing value. Even when it’s “clever”, it feels like shaving friction rather than adding substance. Efficient, but spiritually thin.
Agency and narrative
When I ship software, there’s a story I can tell myself: “I solved a real problem for real people.” Trading bots don’t give me that. The narrative is just “I was faster or luckier for a moment.” Humans care a lot about narrative identity, even engineers who pretend they don’t.
Asymmetric failure feels worse
Losing money building a product feels like tuition. I learned, I built skills, and I have artifacts to show for it. Losing money in trading feels like entropy. Nothing accumulates except regret and logs. Although you do learn more about AI and algorithms.
Ego plus honest self-assessment
Ego and fear are also involved, but maybe in a healthy way. I know algorithmic trading rewards a very specific profile: obsessive, adversarial, statistically ruthless, and comfortable with meaninglessness. I'm noticing “this might not be who I am.”
Misaligned feedback loops
Product work rewards patience, taste, empathy, and long arcs. Trading rewards short-term signal exploitation. My brain clearly prefers the former. When feedback loops don’t align with my values, they feel “gross”.
Quant envy without quant desire
I respect that real quants exist and have an edge, but I don’t actually want their life. This creates a mild cognitive dissonance that resolves as moral revulsion. My mind is protecting my identity.
Creation vs zero-sum
At a gut level, I'm allergic to zero-sum games. Even when markets are not strictly zero-sum, they feel that way experientially. SaaS feels positive-sum. That matters more than whether the economics textbook agrees.
The short version:
I'm a builder who wants durable impact, compounding meaning, and artifacts that survive me. Algorithmic trading optimizes for none of these. However, it still serves a vital role in price discovery and liquidity, and many people get very rich from it, even if I can't find much meaning in working on it.