William Eckhardt (trader)
Encyclopedia
William Eckhardt is a commodities and futures
trader
and fund manager. He began trading in 1974 after four years of doctoral research at the University of Chicago
in mathematical logic
.
. His follow-up article, A Shooting-Room view of Doomsday was published in the Journal of Philosophy
in 1997. Both articles make arguments skeptical of the Doomsday Argument
as formulated by John Leslie
. In 2006, he published Causal time asymmetry in the journal Studies In History and Philosophy of Modern Physics.
management firm, specializing in the trading of global financial futures
and commodities, which manages over $1 billion in managed accounts, domestic and offshore
products. The firm's international clientele includes "fund of funds
", corporate, private, and institutional investors
.
Having a strong analytical and mathematical background, Eckhardt believes that the correct application of statistics and mathematical concepts is key for successful trading. However, he highlights the difficulties in using these concepts, mentioning that "the analysis of commodity markets is prone to pitfalls in statistical inference, and if one uses these tools without having a good foundational understanding, it’s easy to get in trouble".
Prior to founding ETC, Eckhardt was also involved in the Turtle Trading experiment, set up by partner, friend and fellow trader Richard Dennis
. The goal of that experiment was to settle a philosophical disagreement between the two partners, to determine whether the skills of a successful trader could be reduced to a set of rules (i.e. can trading be taught?). The experience was overwhelmingly successful with novice traders ending up making $100 million. Eckhardt, who believed trading could not be taught, had effectively lost his bet with Dennis.
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
trader
Trader (finance)
A trader is someone in finance who buys and sells financial instruments such as stocks, bonds, commodities and derivatives. A broker who simply fills buy or sell orders is not a trader, as they are merely executing instructions given to them. According to the Wall Street Journal in 2004, a managing...
and fund manager. He began trading in 1974 after four years of doctoral research at the University of Chicago
University of Chicago
The University of Chicago is a private research university in Chicago, Illinois, USA. It was founded by the American Baptist Education Society with a donation from oil magnate and philanthropist John D. Rockefeller and incorporated in 1890...
in mathematical logic
Mathematical logic
Mathematical logic is a subfield of mathematics with close connections to foundations of mathematics, theoretical computer science and philosophical logic. The field includes both the mathematical study of logic and the applications of formal logic to other areas of mathematics...
.
Education
Eckhardt never finished his PhD in mathematics, claiming that he left graduate school for the trading pits after an unexpected change of thesis advisors. Despite leaving academia prematurely, Eckhardt has published several papers in academic journals. In 1993, Eckhardt's article Probability Theory and the Doomsday Argument was published in the philosophical journal MindMind (journal)
Mind is a British journal, currently published by Oxford University Press on behalf of the Mind Association, which deals with philosophy in the analytic tradition...
. His follow-up article, A Shooting-Room view of Doomsday was published in the Journal of Philosophy
Journal of Philosophy
The Journal of Philosophy is a monthly peer-reviewed academic journal on philosophy. Its stated purpose is "To publish philosophical articles of current interest and encourage the interchange of ideas, especially the exploration of the borderline between philosophy and other disciplines." The...
in 1997. Both articles make arguments skeptical of the Doomsday Argument
Doomsday argument
The Doomsday argument is a probabilistic argument that claims to predict the number of future members of the human species given only an estimate of the total number of humans born so far...
as formulated by John Leslie
John A. Leslie
John Andrew Leslie is a Canadian philosopher. He was educated at Wadham College, Oxford, earning his B.A. in English Literature in 1962 and his M.Litt. in Classics in 1968...
. In 2006, he published Causal time asymmetry in the journal Studies In History and Philosophy of Modern Physics.
Career
In 1991 he founded Eckhardt Trading Company ("ETC"): an alternative investmentAlternative investment
An alternative investment is an investment product other than the traditional investments of stocks, bonds, cash, or property. The term is a relatively loose one and includes tangible assets such as art, wine, antiques, coins, or stamps and some financial assets such as commodities, private equity,...
management firm, specializing in the trading of global financial futures
Futures contract
In finance, a futures contract is a standardized contract between two parties to exchange a specified asset of standardized quantity and quality for a price agreed today with delivery occurring at a specified future date, the delivery date. The contracts are traded on a futures exchange...
and commodities, which manages over $1 billion in managed accounts, domestic and offshore
Offshore financial centre
An offshore financial centre , though not precisely defined, is usually a small, low-tax jurisdiction specializing in providing corporate and commercial services to non-resident offshore companies, and for the investment of offshore funds....
products. The firm's international clientele includes "fund of funds
Fund of funds
A "fund of funds" is an investment strategy of holding a portfolio of other investment funds rather than investing directly in shares, bonds or other securities. This type of investing is often referred to as multi-manager investment...
", corporate, private, and institutional investors
Investment management
Investment management is the professional management of various securities and assets in order to meet specified investment goals for the benefit of the investors...
.
Having a strong analytical and mathematical background, Eckhardt believes that the correct application of statistics and mathematical concepts is key for successful trading. However, he highlights the difficulties in using these concepts, mentioning that "the analysis of commodity markets is prone to pitfalls in statistical inference, and if one uses these tools without having a good foundational understanding, it’s easy to get in trouble".
Prior to founding ETC, Eckhardt was also involved in the Turtle Trading experiment, set up by partner, friend and fellow trader Richard Dennis
Richard Dennis
Richard J. Dennis, a commodities speculator once known as the "Prince of the Pit," was born in Chicago, in January, 1949. In the early 1970s, he borrowed $1,600 and reportedly made $200 million in about ten years. When a futures trading fund under his management incurred significant losses in the...
. The goal of that experiment was to settle a philosophical disagreement between the two partners, to determine whether the skills of a successful trader could be reduced to a set of rules (i.e. can trading be taught?). The experience was overwhelmingly successful with novice traders ending up making $100 million. Eckhardt, who believed trading could not be taught, had effectively lost his bet with Dennis.