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Machine Learning for Finance

You're reading from   Machine Learning for Finance Principles and practice for financial insiders

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Product type Paperback
Published in May 2019
Publisher Packt
ISBN-13 9781789136364
Length 456 pages
Edition 1st Edition
Languages
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Authors (2):
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Jannes Klaas Jannes Klaas
Author Profile Icon Jannes Klaas
Jannes Klaas
James Le James Le
Author Profile Icon James Le
James Le
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Table of Contents (15) Chapters Close

Machine Learning for Finance
Contributors
Preface
Other Books You May Enjoy
1. Neural Networks and Gradient-Based Optimization 2. Applying Machine Learning to Structured Data FREE CHAPTER 3. Utilizing Computer Vision 4. Understanding Time Series 5. Parsing Textual Data with Natural Language Processing 6. Using Generative Models 7. Reinforcement Learning for Financial Markets 8. Privacy, Debugging, and Launching Your Products 9. Fighting Bias 10. Bayesian Inference and Probabilistic Programming Index

Preparing the data


Preparing the text is a task in its own right. This is because in the real world, text is often messy and cannot be fixed with a few simple scaling operations. For instance, people can often make typos after adding unnecessary characters as they are adding text encodings that we cannot read. NLP involves its own set of data cleaning challenges and techniques.

Sanitizing characters

To store text, computers need to encode the characters into bits. There are several different ways to do this, and not all of them can deal with all the characters out there.

It is good practice to keep all the text files in one encoding scheme, usually UTF-8, but of course, that does not always happen. Files might also be corrupted, meaning that a few bits are off, therefore rendering some characters unreadable. Therefore, before we do anything else, we need to sanitize our inputs.

Python offers a helpful codecs library, which allows us to deal with different encodings. Our data is UTF-8 encoded...

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