Thank You, Legends of Systematic Trading
This Thanksgiving, we want to convey our thanks to some of the masters of systematic trading who have made invaluable contributions to this domain. They are the icons and inspirations for every generation of traders.
Richard Dennis is a legendary figure in the world of trading. He is best known for his successful experiment in which he taught a group of novice traders, famously called the Turtles, how to trade using a systematic approach. After proving that his system worked, Dennis went on to become one of the most successful commodity traders of all time. This story has been told in "The Complete Turtle Trader" book.
William Eckhardt is a well-known trader who has been involved in both futures and stock trading. He is best known for his development of the turtle trading system, a mechanical trading system that was successfully used by a group of traders known as the turtles. You can learn more about their approach in the "Way of the Turtle" book.
Ed Seykota is another legendary figure in the world of trading. He is best known for his development of trend following, a systematic approach to trading that involves following the major trends in the market. Seykota has been extremely successful using this approach, and he is widely respected by other traders.
Larry Williams is a well-known trader who has had success with both short-term and long-term trading approaches. He is best known for his book "How I Made One Million Dollars Last Year Trading Commodities," which details his experiences and successes in the world of commodities trading. Williams has also won the World Championship of Futures Trading multiple times.
Jim Simons is the founder of Renaissance Technologies, a highly successful hedge fund that uses quantitative methods to trade financial markets. Simons is a mathematician by training, and he has used his knowledge to develop sophisticated computer models that allow Renaissance to profit from even small changes in market prices. Between 1988 and 2008 their Medallion Fund delivered an annualized return of 66%. His story has been covered in "The Man Who Solved The Market."
David Shaw is the founder of D E Shaw & Co., a highly successful investment firm that uses quantitative methods to trade financial markets. Shaw was originally trained as a computer scientist, and he has used his knowledge to develop sophisticated trading algorithms that have made D E Shaw & Co. one of the most profitable hedge funds in history.
Tom Basso is a well-known figure in the world of trading. He is best known for his work on developing mechanical trend-following trading systems. Basso is also a well-respected author and has written books like "Panic-proof Investing."
Victor Sperandeo, popularly known as Trader Vic, is a well-known figure in the world of trading. He is best known for developing indexes and trading strategies that are designed to benefit from futures price trends. These include both actively managed strategies as well as rules-based algorithmic quantitative models. He has received three patents in the U.S., two in the Bahamas, and one in Australia on financial products using long/short algorithmic indicators or indices in conjunction with leverage, which adds alpha while simultaneously reducing risk. He is famous for predicting the stock market crash of 1987.
John Henry is a well-known systematic trader. He is known for methods that make mechanical, non-discretionary trading decisions in response to systematic determinations of reversals in each market's direction, with the explicit intention of precluding not only human emotion but also any subjective evaluation of factors outside of price behavior, such as fundamentals, to trigger each decision to be long or short each market, or not.
Dave Weisberger is an expert in market structure and quantitative trading. His experience includes responsibility for quantitative equity trading at Citigroup, founding the market-making business for Two Sigma Securities, and being the global head of equity market structure for IHS Markit.
James O'Shaughnessy is one of the most highly respected and successful investors in the world. He has spent more than 30 years researching equity market returns, and his work has brought to light the power of what he calls 'fundamental quant'. O'Shaughnessy is also remarkably altruistic; despite lucrative offers to keep his research private, he presented it to the world. O'Shaughnessy is also a well-respected author and has written several books on investing, including "What Works On Wall Street."
David Harding is regarded as one of the pioneers of the hedge fund industry. He is the founder of Winton Capital Management, one of the largest and most successful systematic trading firms in the world. Before that, he had formed the AHL that became Man AHL later. Harding is a highly respected figure in the trading community, and his work has demonstrated the power of scientific research in trading.
Bill Dunn is a highly respected trader who developed some of the first commercial trend following systems. He is the founder of Dunn Capital Management, a successful commodity trading advisor (CTA) firm that uses trend following strategies. Dunn's work has had a major impact on the development of trend following as a strategy and he is widely respected by other traders as a pioneer in the development and trading of technical, computer-based models for futures portfolios.
Ken Griffin is a billionaire hedge fund manager who is considered to be one of the greatest investors of all time. Griffin is the founder and CEO of Citadel, a global investment firm. Citadel's flagship investment strategy is based on quantitative analysis and high-frequency trading.
Tom DeMark is a well-known trader and technical analyst who has made significant contributions to the field of trading system development. He is best known for his work on developing systems that use price action and candlestick patterns. DeMark is also the creator of the DeMark Indicator List for market timing.
John Murphy is a well-known technical analyst and author who has significantly contributed to enabling technical trading system development. He is best known for his work on chart patterns and technical indicators. Murphy is also the author of several books on trading, including "Technical Analysis of the Financial Markets."
George Lane was a well-known securities trader, author and educator. He was part of a group of futures traders in Chicago who developed the stochastic oscillator (also known as "Lane's stochastics"), which is one of the core indicators used today among technical analysts. Lane was also President of Investment Educators Inc., where he taught investors and financial professionals basic and advanced technical analysis methods. He popularized the stochastic oscillator.
Andrew Lo is a well-known academic and researcher who has made significant contributions to the evolutionary approach to the market with his Adaptive Market Hypothesis as an alternative to the Efficient Market Hypothesis. He is best known for his work on developing systems that use quantitative techniques. Lo is also the founder of AlphaSimplex Group, a quantitative investment management company
Ed Thorp is an American mathematician, physicist, and investor who also played a key role in the development of algorithmic trading. He pioneered the modern applications of probability theory, including the harnessing of very small correlations for reliable financial gain. Thorp was one of the first to develop and use statistical arbitrage strategies, and he wrote one of the first books on the subject, "Beat the Dealer". He also widely used Kelly Criterion for both blackjack and financial markets. He wrote the book "The Man for all Markets". Thorp's work laid the foundation for many of the quantitative trading strategies that are used today.
Cliff Asness is an American economist and investor who is best known for his work on quantitative investing and asset management. Asness is the founder of AQR Capital Management, a global investment management firm that uses algorithms to trade financial instruments across asset classes. Asness has been instrumental in the development of numerous quantitative trading strategies.
These legends are big inspirations to us at Researchfin.ai. Hope they are for all of you as well.