Market Overview

This Day In Market History: Computerized Trading Pioneer Ed Seykota Born

Share:
This Day In Market History: Computerized Trading Pioneer Ed Seykota Born

Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.

What Happened?

On this day 72 years ago, computerized trading pioneer Ed Seykota was born.

Where The Market Was

The Dow Jones Industrial Average closed at 202.96 and the S&P 500 traded at 17.70.

What Else Was Going On In The World?

In 1946, the United Nations held its first ever meeting in London. The United States passed the Atomic Energy Act of 1946 to oversee the creation of nuclear weapons and explore the peaceful usage of nuclear energy. The average price of a new car was $1,120.

Father Of Computerized Trading

After getting degrees in electrical engineering and management from MIT in 1969, Seykota designed a computerized trading system using primitive punched card computers to trade the commodities market.

Seykota’s first ever trading system was based on exponential moving averages and tested using a mainframe IBM (NYSE: IBM) computer. Over time, Seykota’s trading system became more advanced and less rigid as he adapted it to his personal trading style.

In 1992, Seykota formed a group called The Trading Tribe to brainstorm about how traders allow emotions to outweigh logic in decision-making. Seykota included many of these ideas as part of the “Trading Tribe Process” included in his 2005 book “The Trading Tribe.”

In Jack Schwager’s influential best-selling book “Market Wizards, Updated, Interviews With Top Traders,” Schwager describes Seykota as “one of the best traders of our time.”

Related Links:

This Day In Market History: Paul Volcker Takes Over As Fed Chair

Study Determines The Best Moving Average Crossover Trading Strategy

Posted-In: Ed Seykota this day in market historyEducation Top Stories Markets General Best of Benzinga

 

Related Articles (IBM)

View Comments and Join the Discussion!
Lightning Fast
Market News Service
$199 Free 14 Day Trial
Book A Demo
Learn How You Can Succeed In The Market With Benzinga Pro

Fastest Market News

Real-Time News Alerts

Customizable News Filters

Book A Demo

The Daily Biotech Pulse: Novartis Stands By Zolgensma, GW Pharma Q2 Propelled By Epidiolex Sales, Ionis-Akcea Clinical Readout

A Peek Into The Markets: US Stock Futures Signal Higher Start On Wall Street