The Keynes Beauty Contest is an adaptation of the classic game of the same name, which was first proposed by economist John Maynard Keynes in the 1920s. The game has been adapted for forex traders to experience the different levels of reasoning required in trading decisions when information is incomplete. The adapted game is to be deployed by Liquid Markets on a weekly basis.
In the Keynes Beauty Contest, participants are asked to pick the most attractive face from a selection of photographs. The winner is the person who picks the face that is most popular among the other participants. This game is designed to illustrate the concept of “herd mentality”, where people tend to follow the crowd and make decisions based on what others are doing.
In the adapted version of the game, forex traders are asked to pick the currency pair that they believe will be the most profitable over the course of the week. The winner is the trader who picks the pair that is most popular among the other traders. This game is designed to illustrate the concept of “market sentiment”, where traders tend to make decisions based on what the market is doing.
The game is designed to help traders understand the importance of making decisions based on their own analysis and research, rather than simply following the crowd. By playing the game, traders can gain insight into the different levels of reasoning required in trading decisions when information is incomplete.
The game is also a great way for traders to practice their decision-making skills in a low-risk environment. By playing the game, traders can gain experience in making decisions without risking their own capital.
The Keynes Beauty Contest is a great way for forex traders to gain insight into the different levels of reasoning required in trading decisions when information is incomplete. By playing the game, traders can gain experience in making decisions without risking their own capital. Liquid Markets is proud to be deploying this adapted version of the game on a weekly basis.
