How the temperature forecast is made

Weather Trader forecasts one thing above all: the daily high and low at a weather station, the number that the climate record prints and that temperature markets settle on. This page says how that number is built, how wide its range is, how it becomes a price, and how it has done. Each step names the page where you can check it.

How the weather models themselves are scored (500 hPa skill, regimes, the Forecast Fork) is on the model method page.

step 1
Model runs
Ten global and regional models, every cycle, read at each station.
step 2
Station MOS
Each model's own error at each station is learned and removed.
step 3
Consensus
The corrected forecasts are blended by how well each has done at that lead.
step 4
Range
The blend's own past error sets the 10–90% range.
step 5
Price
The range becomes the odds of any outcome, on each market's rule.
step 6
Score
Every issue is kept and scored against what the station recorded.

1The target

what counts as the high and the low

The forecast is for the official daily high and low of the local standard day, midnight to midnight without daylight saving, in whole degrees Fahrenheit. That is the value in the National Weather Service climate report, and it is the truth every station forecast here is trained on and scored against. About 1,190 of the 2,411 forecast stations have that official record; the scores below use those.

Markets do not all settle on that value. Section 5 covers the difference.

2Station MOS: each model, corrected at each station

model output statistics

A weather model's grid value is not the airport thermometer. It runs warm at one station and cool at the next, and its error changes with cloud, wind, the time of the high and the season. MOS learns that error from the past and removes it.

The models: ECMWF AIFS and the AIFS ensemble, ECMWF IFS, GFS, ICON, the UK Met Office global model, Canada's GEM, HRRR, RRFS and a WeatherNext 3 station product for today and tomorrow. Each has its own page under Station MOS. A model version the equations were not trained on is held back until they are retrained.

3The consensus: one high and one low

a blend weighted by measured skill

No single corrected model is best at every lead. The MOS Consensus blends them, with the National Blend of Models as one more member.

In practice the weight goes where the skill is: the WeatherNext 3 product and the short-range models on the first day, and the two ECMWF AI products from day 1 outward. A member with a weight of zero is still shown on the station page, but it does not move the number.

Why blend at allA blend is only worth having if it beats its best member. The Lead Board tests that at every lead, on the days both forecast. It has, by 0.1 to 0.7°F, at every lead from the same day to day 13.

4The range

the 10–90% band

Each consensus value carries a 10–90% range: the official value should fall inside it four days in five. The width is the consensus's own past error at that lead, treated as a bell curve around the forecast. It widens with lead, from about ±2.5°F tomorrow to about ±7°F at day 12.

Known limitThe width is one number per lead for the whole country. It does not yet narrow for an easy day in Miami or widen for a frontal day in Denver. Fitting it by region and by how much the members disagree is the next change to this step.

5From forecast to price

settlement rules, odds and the comparison with the market

A temperature contract pays on a station's high or low for one day. The odds of any outcome are the share of the forecast range that falls on the paying side, in whole degrees.

Each market reads the thermometer differently, and the difference is worth most of a degree:

KalshiThe official climate value for the local standard day, the same truth as section 1.
PolymarketThe highest or lowest hourly airport report over the local calendar day.
ForecastExThe same hourly reports; a contract pays if the value is above (or below) the strike.
The gapThe official high runs about 0.75°F above the highest hourly report, and the official low about 0.55°F below the lowest. The forecast is shifted by each station's measured gap before it is priced on a market that uses the reports.

These rules are re-checked against the settled contracts twice a day, on the Venues page. Once the day has started, the high cannot finish below what the station has already reported, so the range is cut off there and the forecast leans on the newest observations and short-range runs.

Three forecasts, for nowThe site currently has three blends of the same models. The MOS Consensus described above is the station forecast and has the longest record. The Live Desk prices markets from a second blend built for the 59 market stations, which also uses observations during the day. Outcome Odds, the Screen and the station pages still use an older, simpler blend of seven sources. They agree to within a degree or two on most days. A direct test between them on the same stations and days is the next piece of work, and the pages will move to whichever does best.

Positions on this site are paper. No money is traded, and nothing here is advice.

6The record

how it has done, updated daily

Every issue is archived as published and scored against the official value. The table shows the average miss in °F by lead day: the consensus, the National Blend of Models, and the station's 1991–2020 normal for the date. Smaller is better.

Daily high · average miss, °F
Daily low · average miss, °F

The full board, with every member and the test against the best of them, is the Lead Board.

Against the markets. The forward record against market prices is on The Edge. The record is short, and it differs by market: the forecast has done better against thinly traded prices than against the most active ones.

7What is not done

read the numbers with these in mind

Changes to any step are listed on What's New. Source commit –.