Artificial intelligence in trading

Welcome to the Virtual Classroom!

Today we'll talk about:

• Artificial intelligence
• Trading
• Conditional sentences
Warm up | My PC and me

How many hours have you been using your computer for?

• Today, I have been using my computer for...

• So far, I have used my computer for...

Think about the tasks you have completed so far. Did you need your computer for all of them?
Vocabulary storming | AI and trading
What words do you associate with artificial intelligence and trading?

Artificial Intelligence Trading

Correct selection | Flash crashes

A flash crash was/is a rapid and significant drop in the value of a

particular asset that occurs within a short period/point of time, often in
minutes or seconds.

They can lead to a domino affect/effect of automated sell orders and

trigger further price declines/rocket, causing panic and exacerbating
the drop in value.

Flash crashes are typically short-lived/short-seen, and prices may

recover quickly after the initiated/initial decline. However, they can have
a significant/important impact on investor confidence and the overall
stability of financial markets.
Language review | Conditional sentences
A conditional sentence describes a condition and the result of that condition occurring.
We use different types of conditional sentences to express the amount of certainty and
indicate time.

Zero: If you heat ice, it melts.

First: If she likes the bracelet, I will buy it for her birthday.

Second: If they had a lot of money, they would go travelling.

Third: If I had known you were coming, I would have made more food.
Fill in the gaps | Conditional sentences
become · go · have · can · be · think

1. If it is implemented correctly, AI in trading ________________ the potential to revolutionize the

industry.

2. If AI-powered trading systems are able to consistently outperform human traders, perhaps
traditional trading methods ________________ obsolete.

3. If AI algorithms are able to adapt to changing market conditions and adjust trading
strategies accordingly, they ________________ better equipped to handle market volatility
compared to human traders.

4. If regulatory bodies introduced stricter guidelines for AI-powered trading systems, it

________________ help mitigate potential risks and ensure the integrity of financial markets.
Discuss | Robo-advisors

What is a robo-advisor?

If you were going to start investing, would you use a

robo-advisor?

• Yes, I would because...

• No, I wouldn't because...
Speak up! | Bias and artificial intelligence

Bias is: "the action of supporting or opposing a particular person or thing in an unfair way,
because of allowing personal opinions to influence your judgment."

(Cambridge Dictionary)
Over to you | Opportunities for all

Algorithms and AI in trading mean that investments

will have smaller returns because more retail investors
will be able to successfully invest.

Do you agree or disagree? Why?

Roleplay | Is a robo-advisor right for you?

Student A: You know a little bit about investing and AI and your friend has come to you for
advice about whether to use a robo-advisor or not.

Student B: Your friend is trying to help you decide how to make a start in the world of
investments. Answer their questions to determine your next step.

You could discuss:

• Budget for professional advice
• Trust of technology vs instinct
• Importance of interaction with a person
Cool-down | What did you learn today?
Thank you for joining me
Thanks for participating in today's virtual classroom.
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Until next time!