Alt-data & nowcasting
VIII · Alt-data & nowcasting Funding-grade

Weather-to-gas nowcast

Population-weighted degree-days nowcasting US natural-gas storage, walk-forward out-of-sample R² 0.946.

In plain terms

Cold weather drives heating demand, and heating demand draws down natural-gas storage. This model turns public weather data into a forecast of the weekly US gas-storage figure before the official number is released.

How it works

Temperature readings across the country are converted into population-weighted heating- and cooling-degree-days, then mapped to the change in gas inventory by a walk-forward-fitted relationship — so the model is only ever judged on data it has not seen.

What it’s tested against

Evaluated walk-forward out-of-sample, with a placebo (the same machinery on scrambled inputs) to confirm it reads signal rather than fitting noise. It is a genuine nowcast, not a deployed trade — the public weather it uses is largely already in the price, which is exactly the distinction the gate is built to surface.

0.946 Walk-forward OOS R²

Data

Open-Meteo temperature data; EIA weekly natural-gas storage.

Funding-grade research artefact — a clean forecasting result, kept as evidence rather than a live trade.

All strategy families

Research record only. Strategy logic stays private; what is shown can be reconstructed from a versioned notebook and a dated data snapshot. Not investment advice.