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THE METHODOLOGY

Calibrated Guidance.
One Trading Decision.

Most weather traders look at a single app icon and guess. We do not guess. The weather bot prices every decision from NOAA's National Blend of Models, the calibrated station-level guidance published for exactly the stations Kalshi settles against, and it declines to trade any market NBM does not cover. The inflation bot applies the same discipline across five macro data streams for CPI and PCE contracts.

One calibrated source, cross-checked

0.75

NOAA NBM

Calibrated, bias-corrected station guidance for the exact station Kalshi settles on.

Disagreement check · 0.25 combined

0.07

ECMWF IFS

0.05

GFS

0.05

HRRR

0.04

AIGEFS

0.04

AIFS

No NBM guidance for a market means no trade. Coverage begins at forecast hour 24, so same-day markets are skipped.

NOAA NBM · weight 0.75

Calibrated station guidance

NBM publishes bias-corrected probabilistic temperature guidance, including mean, standard deviation and percentiles, for the individual stations Kalshi settles against. It is the operational product NOAA calibrates against those same observations.

Probability construction

NOAA's own percentiles, interpolated

Probability comes from interpolating the published percentile ladder, with normal tails beyond P10 and P90 and a 1.15 multiplier on sigma, because real temperature outcomes have fatter tails than a Gaussian.

Raw NWP · weight 0.25 combined

GFS, AIGEFS, ECMWF IFS, AIFS, HRRR

Five raw forecast systems keep a minority vote as a disagreement check. They carry real signal, but they are no longer the basis of the decision.

Settlement stations

20 cities, read from Kalshi metadata

Stations come from Kalshi's own series metadata rather than guesswork. Chicago settles on Midway, not O'Hare. Houston settles on Hobby, not Bush. Forecasting the wrong airport is forecasting the wrong contract.

Inflation bot (CPI + PCE)

Five independent signal sources

Cleveland Fed nowcast, FRED energy leading indicators, BLS CPI subcomponents, BEA PCE tables, and a homemade weighted nowcast. When those views diverge by more than 0.15 percentage points, that disagreement becomes the actionable signal.

predict_and_profit — live run

[ INFO ] Resolving settlement stations from Kalshi series metadata: chi=KMDW hou=KHOU...

[ INFO ] Fetching NBM station guidance (mean, sigma, percentiles) for 20 cities...

[ CALC ] Interpolating published percentiles, normal tails beyond P10/P90, sigma x1.15...

[ INFO ] Cross-checking 5 raw NWP sources at 0.25 combined weight...

[ SKIP ] ticker=KXHIGHCHI reason=no_forecast_available (same-day, NBM coverage starts at F024)

[ GATE ] EDGE_SCORE ticker=KXHIGHTDC spread=0.91 volume=0.88 imbalance=0.76 mispricing=0.85 composite=0.85

[ EXEC ] ELIGIBLE ticker=KXHIGHTDC side=YES price=0.72 edge_score=0.85 → PLACING ORDER

[ INFO ] Scanning remaining tickers... majority rejected (threshold not met).

TRADE GATING

Four Signals. One Score.

Every potential trade is scored on four dimensions before a single dollar is risked. Only trades that pass all four filters with a composite score above threshold get executed. In practice, the bot rejects 95%+ of opportunities. Patience is the edge.

30%Spread Analysis

How tight is the bid-ask spread? Tight spreads mean real liquidity, not phantom orders sitting in an empty book.

20%Volume Confirmation

Is there actual trading activity, or is this a dead market? The bot requires minimum volume thresholds before entering.

25%Order Book Imbalance

Which side has more demand? If we are buying YES and the order book is stacked with YES bids, the market agrees with us.

25%Model Mispricing

How far is the market price from the probability NBM implies? This is the core edge: the gap between what the market thinks and what NOAA's calibrated station guidance says.

Example composite score calculation

spread=0.91 × 0.30 = 0.273 volume=0.88 × 0.20 = 0.176 imbal =0.76 × 0.25 = 0.190 misprice=0.85 × 0.25 = 0.213 ───────── composite = 0.852 ✓ ABOVE THRESHOLD → EXECUTE

PRODUCT STATUS

v2.5: Weather + Inflation + Dashboard, Current

Includes the NBM forecast model, the inflation bot, fees recorded in the ledger, confirmed-fill accounting, settlement tracking, setup validation, migration tooling, and the read-only dashboard. The shipped changelog lists the known open issues as well as the fixes. Existing buyers receive updates at no extra charge.

LIVE

NOAA National Blend of Models, station-level guidance

Calibrated, bias-corrected probabilistic temperature guidance at 0.75 weight. Five raw NWP sources hold the remaining 0.25 as a disagreement check.

LIVE

Same-day markets are skipped

NBM coverage begins at forecast hour 24. The bot declines to price what it cannot price.

LIVE

Inflation bot — five macro signals

Cleveland Fed nowcast, FRED energy, BLS CPI detail, BEA PCE, homemade weighted nowcast.

LIVE

Strike consistency + regime detection

Logical position checks and contradiction logging before new risk is added.

LIVE

Optional visual dashboard + SQLite logging

Zero-config local database and an optional UI for monitoring runs.