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DRW·Machine Learning Engineer·Take-home Assignment·Senior

Senior
Jul 2026

Summary

DRW ML Engineer interview, looks like a take-home or practical coding round centered entirely on a constrained ML problem. No model swapping allowed, which forced me to actually think about the data side for once.

Questions Asked (4)

Q1

Given a fixed LinearSVC classifier, implement train() and test() functions so that your model beats a provided baseline accuracy on a hidden test set. You can only touch preprocessing, feature engineering, and hyperparameters.

Technical Trade-offsAlgorithms & Data StructuresSystem Design
Author's notes

The constraint is the whole puzzle.

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AI HintsAI Generated

Suggested Approach

Start by thoroughly understanding the data and baseline, then systematically explore preprocessing, feature engineering, and hyperparameter tuning for the fixed LinearSVC. Use cross-validation to guide improvements and avoid overfitting, focusing on techniques that enhance linear separability.

Pro tip: Always establish a robust validation strategy that mirrors the hidden test set distribution; this prevents overfitting to the public leaderboard and ensures your improvements generalize.

1. Understand the Data and Baseline

Analyze the dataset characteristics (size, feature types, class balance) and the baseline accuracy to identify areas for improvement. Determine if the baseline is weak or strong to set realistic goals.

2. Preprocess and Engineer Features

Apply scaling, normalization, and encoding as needed, then create new features (e.g., interactions, polynomial terms, text embeddings) to make the data more linearly separable. Use domain knowledge to guide feature creation.

3. Tune Hyperparameters

Optimize LinearSVC hyperparameters (C, loss, penalty, dual) using grid or random search with cross-validation. Consider the trade-off between bias and variance.

4. Validate and Iterate

Use a validation set or cross-validation to evaluate changes, ensuring improvements are consistent. Iterate on preprocessing, features, and hyperparameters based on validation performance.

5. Finalize and Test

Retrain the model on the full training set with the best configuration and evaluate on the hidden test set. Document the process and reasoning for reproducibility.

Key Points to Mention

  • Feature scaling (e.g., StandardScaler) is crucial for SVM performance.
  • Handling class imbalance (e.g., class_weight='balanced') if applicable.
  • Feature selection to reduce noise and dimensionality.
  • Cross-validation to avoid overfitting and ensure generalization.
  • Hyperparameter tuning (C, loss, penalty) with search strategies.
  • Domain-specific feature engineering to enhance linear separability.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q2

How would you tune hyperparameters and validate your model without ever looking at the test set? Describe a strategy that lets you confidently claim you've beaten the baseline using only training data.

A/B Testing & ExperimentationTechnical Trade-offs
Author's notes

Stratified k-fold was the obvious answer and I went with that.

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AI HintsAI Generated

Suggested Approach

Outline a rigorous nested cross-validation or train/validation/test split strategy where the test set is locked away, and hyperparameter tuning is done solely on training folds with an inner validation loop. Emphasize that model selection and performance estimation are based on validation metrics, and the final claim of beating the baseline is supported by statistical tests on validation results, not test data.

Pro tip: Mention that you would pre-register your validation protocol and evaluation metric before tuning to avoid p-hacking, and use the same folds for baseline and candidate models to ensure a fair comparison.

1. Define evaluation protocol

Choose a primary metric (e.g., AUC, F1) and a resampling scheme (e.g., k-fold cross-validation) that will be used consistently for all models. Pre-register this protocol to prevent bias.

2. Split data into training and validation

Hold out a validation set (or use cross-validation folds) from the training data. The test set remains untouched and is never used for any decision-making.

3. Tune hyperparameters on training folds

Use grid search, random search, or Bayesian optimization with an inner validation loop (e.g., nested cross-validation) to select hyperparameters that maximize validation performance.

4. Compare against baseline with statistical testing

Evaluate the tuned model and the baseline on the same validation folds. Use a paired statistical test (e.g., Wilcoxon signed-rank) to determine if the improvement is significant.

5. Report validation results and lock the model

Claim victory over the baseline based on validation metrics and confidence intervals. The test set is only used once at the very end for final confirmation, if at all.

Key Points to Mention

  • Nested cross-validation to avoid optimistic bias in hyperparameter tuning
  • Use of a separate validation set or inner folds for tuning, distinct from the test set
  • Statistical significance testing (e.g., paired t-test, Wilcoxon) to compare models
  • Pre-registration of the evaluation metric and protocol to prevent p-hacking
  • Consistent data splits for baseline and candidate models to ensure fair comparison
  • Avoiding data leakage by never using test data for any modeling decisions

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q3

How do you handle class imbalance within the LinearSVC constraint? Walk through your approach.

Algorithms & Data StructuresTechnical Trade-offs
Author's notes

class_weight='balanced' is the obvious lever and I mentioned it.

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AI HintsAI Generated

Suggested Approach

Start by clarifying that LinearSVC solves a soft-margin SVM problem where class imbalance can be addressed by adjusting the penalty parameter C per class or by resampling. Then walk through a systematic approach: diagnose the imbalance, choose a strategy (class weights, resampling, or algorithmic modifications), implement it within the LinearSVC constraint, and validate the results. Emphasize that the choice depends on the specific imbalance ratio and business metric.

Pro tip: Mention that in practice, setting class_weight='balanced' is a quick baseline, but for severe imbalance, combining it with a custom loss that penalizes false negatives more can be more effective. Also, note that LinearSVC's dual formulation allows efficient handling of class weights without significantly increasing computational cost.

1. Diagnose the imbalance

Quantify the class distribution and assess the impact on the decision boundary. Determine the imbalance ratio and whether it's severe (e.g., >10:1).

2. Choose a strategy

Select from class weighting, resampling (oversampling/undersampling), or algorithmic modifications like adjusting the loss function. Consider trade-offs between bias, variance, and computational cost.

3. Implement within LinearSVC

Use the class_weight parameter to assign higher penalty to the minority class, or modify the dual formulation to incorporate sample weights. Alternatively, resample the data before training.

4. Tune and validate

Tune the penalty parameter C and class weights using cross-validation with a metric suited for imbalance (e.g., F1, AUC-PR). Validate on a held-out set to ensure generalization.

5. Monitor and iterate

Deploy the model and monitor performance on the minority class. If needed, iterate by adjusting weights or combining with other techniques like ensemble methods.

Key Points to Mention

  • Class weights in LinearSVC: setting class_weight='balanced' or custom weights inversely proportional to class frequencies.
  • Resampling techniques: random oversampling of minority class, undersampling of majority class, or SMOTE for synthetic samples.
  • Algorithmic modifications: adjusting the loss function to penalize misclassification of minority class more heavily.
  • Evaluation metrics: use precision-recall AUC, F1-score, or balanced accuracy instead of accuracy.
  • Computational considerations: class weighting in LinearSVC is efficient due to the dual formulation, but resampling may increase training time.
  • Trade-offs: class weighting may increase false positives, while resampling can lead to overfitting; choose based on business costs.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.

Q4

How do you make your ML pipeline reproducible and trackable across experiments?

System DesignTechnical Trade-offs
Author's notes

Fixed seeds, saved pipeline artifacts, a simple experiment log with CV mean and std.

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AI HintsAI Generated

Suggested Approach

Structure your answer around the three pillars of reproducibility: versioning (code, data, environment), orchestration (pipeline automation), and tracking (experiment metadata). Emphasize how these components integrate to enable end-to-end lineage and auditability, which is critical in a trading firm like DRW.

Pro tip: Highlight the importance of immutable data snapshots and environment locking (e.g., Docker + conda) to avoid silent failures, and mention that you enforce reproducibility via CI/CD checks that block non-compliant experiments.

1. Version Control Everything

Use Git for code, DVC or Git-LFS for data and model artifacts, and lock environment dependencies with tools like conda-lock or pip-tools. This ensures every experiment is tied to a specific commit and dataset version.

2. Containerize and Orchestrate

Package the pipeline in Docker containers to guarantee consistent execution across environments. Use orchestration tools like Airflow, Kubeflow, or Metaflow to define and automate pipeline steps, making runs repeatable and scalable.

3. Track Experiments Systematically

Integrate an experiment tracking tool (e.g., MLflow, Weights & Biases) to log parameters, metrics, artifacts, and code versions. This creates a searchable record of all experiments and their outcomes.

4. Enable End-to-End Lineage

Link data versions, code commits, and experiment runs so you can trace any model back to its inputs. Use tools like DVC pipelines or MLflow's model registry to capture dependencies and facilitate audits.

5. Automate and Enforce

Implement CI/CD pipelines that run reproducibility checks (e.g., re-run a pipeline and compare outputs) and enforce standards. This prevents drift and ensures compliance with firm-wide policies.

Key Points to Mention

  • Data versioning with DVC or Delta Lake to handle large datasets and ensure immutability.
  • Environment reproducibility using Docker and dependency locking (conda-lock, pip-tools).
  • Experiment tracking with MLflow or W&B, including logging of hyperparameters, metrics, and artifacts.
  • Pipeline orchestration tools (Airflow, Kubeflow, Metaflow) for automation and scheduling.
  • Model registry and lineage tracking for auditability and governance.
  • CI/CD integration to enforce reproducibility and catch issues early.

AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.