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Define main parameters for k-nn algorithm

User: "Olus"
New Altair Community Member
Updated by Jocelyn
I would like to apply k-nn to a Trading activity analysis. How do I define the parameters on which the k-nn has to base itself? I would like to cluster my data based on some of the parameters such as: P&L, Size of the trade, holding period 
and put other parameters which are not important: Date / Buy Price / Sell Price, etc 

How should I label the parameters I want k-nn to use and the ones it should not take into account? 
Many thanks for your help.

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    User: "varunm1"
    New Altair Community Member
    Accepted Answer
    Hello @Olus

    If I understanding correctly, you are trying to do clustering on your data. If so, the algorithm you are talking about is K-means clustering and not KNN. This is confusing for many, but KNN is a supervised model and k-means is an unsupervised model (clustering algorithm). One of the important parameters that we vary in K-means is the value of K (number of clusters). This is dependent on multiple factors.

    Please see below thread where my good friend @lionelderkrikor explain about this,
    https://community.rapidminer.com/discussion/comment/61654#Comment_61654

    If you are talking about KNN for classification do let us know, we will provide more information.
    User: "Olus"
    New Altair Community Member
    OP
    Hi @varunm1
    Many thanks for your insightful answer. 
    I was indeed referring to the unsupervised k-means process. Will review the link you mentioned. 
    I also would like to use knn for the supervised part of my analysis, could you send me the link?
    Many thanks for your precious time and help. 

    Olus