The paint schemes on German planes developed from camouflage to obviously outstanding colourful. I don't know, if it was historically correct, but in the film "Der Rote Baron", Manfred painted his Albatros red. His colleague pilots wonder, and one says: well, this is not much of a camouflage - you will rather be seen for miles with this. And MvR replies: I want to be seen. I want them to know, that we are not the least afraid of being seen by them. Why don't you paint your planes colourful too.
And, after short doubts, if Idflieg would allow this, they all began to think of their ideas for designs. In MvR's Jasta, his brother chose yellow, for example, because that was the colour of his former (Kavallerie?) regiment.
That they could now identify each other in mid air almost immediately, was a second, welcome effect.
The pilots lived in large tents instead of barracks, to be more mobile. They could change the airfield within very short time. These tents, plus the incredible choices of colours, gave the German pilots the name "Flying Circus".