SIG employees enjoy success in the financial markets in part because of the application of game theory and risk management concepts to complex market dynamics. The activities listed below highlight different aspects of the strategic landscape in which we operate.
PokerSIG commonly uses poker to teach new hires about decision making under conditions of uncertainty. SIG traders make risk decisions based on the limited information they get from the markets and relate that to the expected value of each trade.
MAGIC: the GatheringSeveral employees at SIG hone their decision making skills by playing MAGIC. There are multiple factors that need to be analyzed before doing a trade. Skills gained from MAGIC can help assess counterparty motives and evaluate risks associated with a trade.
ChessThe best strategy in chess does not necessarily depend on what has already happened in the game, but the past actions of your opponent can provide insight into their thought process. This “shadow of the past” may also be considered in trading, where understanding the actions of other market participants can improve a trader’s decision making process.
Team SportsThere are many lessons that carry over from team sports to trading. While the image of the lone trader standing against the market makes for a good movie, in reality, traders work collaboratively, each playing his or her part in information gathering, assessing alternatives, execution, and risk management.
BridgeSuccessful Bridge players are able to remember the actions of their teammates and apply those actions to their strategy. Our traders rely on our common language in discussing risk and strategy to make the best decisions in the marketplace, anticipating the impact of the actions of their teammates on other parts of the market.
BlackjackBlackjack is a game of memory, which is extremely important in trading. Traders need to remember orders, positions, and risks. Being able to remember previous cards (in the game) or orders (in trading) allows our traders to better assess risk and probabilities.
Strategic Board GamesCertain board games require strategic thinking, pattern identification, and quick response time. Games that we find to be more strategic and relevant to the decision making process in trading include Scrabble, SET, The Settlers of Catan, Backgammon, Puerto Rico, San Juan, Power Grid, and Dominion.
Video GamesThere can be quite a bit of strategy involved in certain video games. Action games require quick reactions to small changes in a potentially over-stimulating environment. This closely mimics the trading environment, where traders keep track of many factors while looking to react efficiently to important changes.