Engineering Alpha

Engineering Alpha

Beyond Linear Regression - L1 & L2 Regularization From Scratch

Adjusting Linear Regression With L1 and L2

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Aug 06, 2026
∙ Paid

Linear regression is often the first real machine learning model people learn. It’s simple, interpretable, and surprisingly powerful. But once you move past toy datasets, plain linear regression starts to show its limits.

Models overfit. Coefficients explode. Predictions look great on training data and fall apart everywhere else.

That’s where regularizat…

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