Air-Sea Fluxes With a Focus on Heat and Momentum

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Edit and run Quant Buffet Python for Air-Sea Fluxes With a Focus on Heat and Momentum in the browser. Results update live with equity, drawdown, and metrics charts. Allowed: backtest.data, backtest.engine, backtest.metrics, numpy, pandas. Define ASSETS and make_on_day(prices). Shortcut: Ctrl+Enter. API docs →

Ready — edit code, then Run backtest.
IDE · 36 lines
Quant Buffet syntax cheat sheet (copy / insert)

Paste these fragments into the editor. The sandbox rejects QuantConnect, os, and network libraries.

Required imports
Only these libraries are allowed in the sandbox.
from __future__ import annotations

import numpy as np
import pandas as pd

from backtest.data import load_daily_prices
from backtest.engine import EngineConfig, PortfolioEngine
from backtest.metrics import compute_metrics
ASSETS list (whitelisted ETFs)
Module-level list. Tickers must be in the Quant Buffet whitelist.
ASSETS = ["SPY", "QQQ", "TLT", "GLD", "BIL"]
make_on_day contract
Must return (on_day, ready). on_day calls engine.set_target_weights.
def make_on_day(prices: pd.DataFrame):
    cols = [c for c in ASSETS if c in prices.columns]
    sma = prices[cols].rolling(200, min_periods=200).mean()
    state = {"last": None}

    def on_day(engine: PortfolioEngine, dt: pd.Timestamp) -> None:
        if sma.loc[dt].isna().all():
            return
        key = (dt.year, dt.month)
        if state["last"] == key:
            return
        state["last"] = key
        long = [
            s for s in cols
            if pd.notna(prices.at[dt, s]) and pd.notna(sma.at[dt, s])
            and prices.at[dt, s] > sma.at[dt, s]
        ]
        weights = {} if not long else {s: 1.0 / len(long) for s in long}
        engine.set_target_weights(dt, weights)

    ready = sma.dropna(how="all").index.min() if sma.notna().any().any() else None
    return on_day, ready
Set target weights
Weights should sum to about 1.0. Empty dict = 100% cash.
engine.set_target_weights(dt, {"SPY": 0.60, "BIL": 0.40})

Live backtest performance

CAGR
6.00%
Sharpe
0.63
Max DD
-18.15%
Vol
10.11%
Sortino
0.93
Beta
0.35

Showing saved draft baseline until you re-run.

Equity curve (indexed = 100)

Accent = strategy · dashed grey = buy-and-hold benchmark

2001-012026-0894066
Drawdown
Worst -13.2%-13%
Metrics bar chart
CAGRSharpeSortinoVol|DD|Grey = baseline · Accent = live run
Monthly returns
2020-092026-08 · last 24 months

Export to your platform

Transform Quant Buffet lab code (ASSETS + make_on_day / PortfolioEngine) into native classes for a third-party IDE — then copy and paste.

Run in: QuantConnect Cloud or LEAN CLI · QCAlgorithm with Equity securities and monthly rebalance.

Detected pattern: Absolute momentumAssets: SPY, TLT, GLD, BIL
# Generated from Quant Buffet → QuantConnect LEAN
# Strategy: Air-Sea Fluxes With a Focus on Heat and Momentum
# Detected pattern: Absolute momentum
# Source uses Quant Buffet lab APIs (ASSETS + make_on_day / PortfolioEngine).
# Review fees, data, and risk before live trading — educational export only.

from AlgorithmImports import *


class QuantBuffetExport(QCAlgorithm):
    def Initialize(self):
        self.SetStartDate(2010, 1, 1)
        self.SetCash(100000)
        tickers = ["SPY", "TLT", "GLD", "BIL"]
        self.symbols = []
        for t in tickers:
            if "-" in t:  # crypto proxy e.g. BTC-USD
                self.symbols.append(self.AddCrypto(t.replace("-USD", ""), Resolution.Daily).Symbol)
            else:
                self.symbols.append(self.AddEquity(t, Resolution.Daily).Symbol)
        self.Schedule.On(
            self.DateRules.MonthStart(self.symbols[0]),
            self.TimeRules.AfterMarketOpen(self.symbols[0], 30),
            self.Rebalance,
        )
        # Logic: Long assets with positive 252-day return; equal-weight; monthly.

    def Rebalance(self):
        # Pattern: abs_momentum — Long assets with positive 252-day return; equal-weight; monthly.
        # Default: equal-weight. Port your make_on_day weights here via SetHoldings.
        w = 1.0 / len(self.symbols) if self.symbols else 0.0
        for symbol in self.symbols:
            self.SetHoldings(symbol, w)

Exported code uses the platform’s native classes and libraries. Install dependencies in your third-party IDE, then run. Validate before live trading.

Academic paper

Air-Sea Fluxes With a Focus on Heat and Momentum

AuthorsMeghan F. Cronin; Chelle Gentemann; James B. Edson; Iwao Ueki; Mark A. Bourassa; Shannon Brown; Carol Anne Clayson; C. W. Fairall

InstituteFlorida State University; University of California San Diego; Institute of Oceanology. PP Shirshov Russian Academy of Sciences; University of Miami

Teaser

Hold assets with positive trailing return; equal-weight the winners. Universe: SPY, BIL. Parameters: lookback=252; rebalance=monthly. Rebalanced on the engine's template schedule with 5 bps commission and 2 bps slippage. Because the paper's primary signal (ML, sentiment, or proprietary data) is not available in our public ETF engine, this draft uses a liquid ETF rule that preserves the paper's economic theme rather than a bit-exact replication.

Strategy in a nutshell

Turbulent and radiative exchanges of heat between the ocean and atmosphere (hereafter heat fluxes), ocean surface wind stress, and state variables used to estimate them, are Essential Ocean Variables (EOVs) and Essential Climate Variables (ECVs) influencing weather and climate. This paper describes an observational strategy for producing 3-hourly, 25-km (and an aspirational goal of hourly at 10-km) heat flux and wind stress fields over the global, ice-free ocean with breakthrough 1-day random uncertainty of 15 W m-2 and a bias of less than 5 W m-2. At present this accuracy target is met only at OceanSITES reference station moorings and research vessels (RVs) that follow best practices. To meet these targets globally, in the next decade, satellite-based observations must be optimized for bo

Economic rationale

Positive time-series momentum indicates a favorable trend state; holding only assets with positive trailing returns tilts toward that premium. Related evidence from “Air-Sea Fluxes With a Focus on Heat and Momentum”: Turbulent and radiative exchanges of heat between the ocean and atmosphere (hereafter heat fluxes), ocean surface wind stress, and state variables used to estimate them, are Essential Ocean Variables (EOVs) and Essential Climate Variables (ECVs) influencing weather and climate. This paper describes an observational strategy for producing 3-hourly, 25-km (and an aspirational goal of hourly at 10-km) heat flux and wind stress fields over the global, ice-free ocean with breakthrough 1-day random un

Backtest performance

Annualised return6.00%
Volatility10.11%
Beta0.35
Sharpe ratio0.63
Sortino ratio0.93
Maximum drawdown-18.15%