Data Pre-Processing – Definition,

Data pre-processing is a fundamental requirement of any suitable machine learning model. Pre-processing the data implies using easily readable data by the machine learning model. Data pre-processing prepares the raw data and makes it ideal for machine learning models. Data pre-processing includes data cleaning to prepare the data for the machine learning model. This article will discuss the basics of data pre-processing and how to make the data suitable for machine learning models.

Our comprehensive blog on data cleaning helps you learn about data cleaning as a part of pre-processing the data and covers everything from the basics, performance, and more. After data cleaning, data pre-processing requires the data to transform into an understandable format for the machine learning model.

Data Pre-Processing Required

Data Pre-processing is Mainly Required for the Following:

  • Accurate data:To make the facts readable for the machine learning model, it needs to be honest with no missing, jobless, or duplicate values.
  • Trusted data:The updated data should be as correct or essential as possible.
  • Precise data:The data updated needs to be interpreted correctly.

Data pre-processing is essential for the machine learning model to learn from such correct data to lead the model to the right guesses/outcomes.

Examples of Data Pre-processing for Unlike data set Types with Python

Since data originates in various formats, let us discuss how different data types convert into a form that the ML model can read accurately.

Let us See How to Feed the right Features from Datasets with:

  • Missing values
  • Outliers
  • Overfitting
  • Data with no numerical values
  • Different date set-ups

Lost values

Missing values are a joint tricky while dealing with data! The values ignore for various reasons such as human errors, mechanical errors, etc. Data cleansing is essential before the algorithmic trading process, which begins with historical data analysis to make the prediction model as accurate as possible.

Based on this calculation model, you create the exchange strategy. Hence, exit missed values in the data set can wreak havoc by giving inaccurate projecting results that lead to erroneous strategy making. Further, the results cannot be great, to state the obvious.

Here are Three Techniques to resolve the Missing Ideals Problem to Find out the Most Accurate Features, and They are:

  • Dropping
  • Numerical imputation
  • Categorical imputation

Dropping is the most common way to take care of the lost ethics. Person rows in the data set or the complete columns with forgotten values drop to avoid errors occurring in data analysis.

Some machines are programmed to automatically drop the rows or columns that include missed values resulting in a reduced training size. Hence, the dropping can lead to a reduction in the model performance. A modest solution for the problem of a decreased training size due to the dropping of values is to use imputation. In the case of dipping, you can define a threshold for the machine. We will discuss the exciting imputation methods further.

For instance, the dawn can be whatever. It tin be 50%, 60%, or 70% of the data. Let us income 60% in our example, which payment that the model/algorithm will accept 60% of data with missing out values as the training data set, but the features with more than 60% missing values drop

For Dropping the Values, the Following Python Codes are Used:

The missed values will drop using the above Python codes, and the machine education model will learn on the rest of the data.

Numerical imputation

The word imputation implies swapping the missing values with such a value that makes sense. And the numerical charge is done in the data with numbers.

For example, if there is a tabular data set with the number of frameworks. Supplies and derivatives trading in a month as the pillars replacing. The missed value with a “0” is better than leaving them with numerical imputation. The data size and hence, predictive models like linear regression can work better to predict most accurately.

A linear regression model cannot work with missing values in the data set since it base toward the forgotten values and considers them “good estimates.” Also, the miss values replace with the median of the columns since median values are not sensitive to outliers, unlike averages of columns.


Data pre-processing is the prerequisite for making the machine learning model be able to read the data set and learn from the same. Any machine learning model can know only when the data consists of no redundancy, no noise and only such numerical values.

Hence, we discussed making the machine learning model learn with data it understands. The best learns from, and performs every time. Unroll now! Find out the importance of data pre-processing in feature engineering while working with machine learning models with this complete course on Data & Feature Engineering for Trading by Quanta.

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