u/FrameFar7262

If the S&P 500 can do ~8-10% long term with almost zero effort, what is the real reason to spend years building algos?

I get the arguments about lower drawdown, automation, diversification, risk- adjusted returns, etc. But if your algo makes 7% with lower drawdown and buy-and-hold makes 10%, isn’t buy-and-hold still better if the goal is just to maximize wealth over decades?

So what is the real goal for serious retail algo traders?

Are you trying to beat SPY outright?

Build uncorrelated returns?

Use leverage on lower-vol systems?

Avoid emotional trading?

Generate income?

Eventually manage outside capital?

Or is it mostly intellectual/engineering challenge?