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I'm going to participate in a game of making portfolios. The objective of the game is to make the portfolio with the bigger ROI over 16 weeks. Over each week every player can see the ROI of each player and the amount of investment instruments (equities) they used to get to that ROI over the week. Each player starts with the same amount of money and doesn't influence in anything the market. Does game theory or any other theory suggest that I can win this game by "mimicking" the more successful portfolios?

I was thinking of a traffic lane kind of theory but I'm not making bigger conclusions than that. Hope you guys can help me. By the way I'm a computer engineer and I'm a beginner in this area so if you could use common financial terms that would be of help. Thank you!

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  • $\begingroup$ Sorry but this site is dedicated to quantitative finance professionals, fee the faq $\endgroup$
    – SRKX
    May 16, 2014 at 15:02
  • $\begingroup$ I agree, not a good question. But let's see if someone has to offer a surprising answer. $\endgroup$
    – Marco Breitig
    May 16, 2014 at 15:05
  • $\begingroup$ @SRKX: The (game) theoretic answer to this question is no, and I have edited this question to incorporate concepts such as Nash equilibrium. If answers gravitate around this, or similar concepts, they would be "non trivial." I was wondering if this question can be re-opened in its current form. $\endgroup$
    – Tom Au
    Jun 3, 2014 at 16:43

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These games are usually won by luck. If there is no fee for buying stocks I'd diversify, i.e. buy many different stocks, to get stable returns. After some weeks you'll see which profit you'll need to beat. Depending on the rules if options are allowed you could invest in highly leveraged derivatives and hope you win. As there is no point not to try to win I only see gambling as a valid strategy. But you should not start too early, depending on the number of participants. If one of your gambles fails, it is nearly impossible to come back.

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