In addition to servo control and power amplification, motion control systems for optical tracking pedestals feature capabilities such as electro-optical tracking using an integrated Automatic Video Tracker (AVT) card. An electro-optical system tracking loop is comprised of sensors mounted on a pointing pedestal, an AVT that detects a target in the sensor imagery, and a tracking filter algorithm that commands the pedestal to follow the target. The tracking filter algorithm receives the target boresight error from the AVT and calculates motion demands for the pedestal servo controller. This paper presents a tracking algorithm based on target state estimation using a Kalman filter. The servo demands are based on calculating the Kalman filter state estimate from absolute line-of-sight angles to the target. Simulations are used to compare its performance to tracking loops without tracking filters, and to other tracking filter algorithms, such as rate feedback loops closed around boresight error. Issues such as data latency and sensor alignment error are discussed.