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Python

"""Unit tests for libs/backtest/allocator.py."""
from __future__ import annotations
import datetime as dt
import math
from zoneinfo import ZoneInfo
import pytest
from libs.backtest.domain import (
BacktestConfig,
Candidate,
DailyPortfolioState,
ExecutionConfig,
OpenPosition,
PlannedOrder,
PositionStatus,
RiskConfig,
SignalConfig,
UniverseConfig,
)
_UTC = ZoneInfo("UTC")
_NOW = dt.datetime(2026, 1, 5, 21, 0, tzinfo=_UTC)
_TODAY = dt.date(2026, 1, 5)
_TOMORROW = dt.date(2026, 1, 6)
def _make_candidate(**kwargs) -> Candidate:
defaults = dict(
event_id="EVT::TEST",
symbol="AAPL",
issuer_id=None,
score=0.8,
sector="Technology",
event_type="earnings",
event_timestamp=_NOW,
filing_time_bucket="post_market",
reaction_date=_TODAY,
execution_date=_TOMORROW,
entry_price_est=100.0,
avg_dollar_volume=5_000_000.0,
atr_14=2.0,
score_bucket="high",
)
defaults.update(kwargs)
return Candidate(**defaults)
def _make_portfolio_state(**kwargs) -> DailyPortfolioState:
defaults = dict(
date=_TOMORROW,
equity=100_000.0,
cash_available=100_000.0,
gross_exposure=0.0,
net_exposure=0.0,
reserved_risk_budget=0.0,
unrealized_pnl=0.0,
realized_pnl=0.0,
open_positions=[],
daily_new_risk_used=0.0,
peak_equity=100_000.0,
current_drawdown_pct=0.0,
)
defaults.update(kwargs)
return DailyPortfolioState(**defaults)
def _make_config(**kwargs) -> BacktestConfig:
defaults = dict(strategy_name="test", dataset_snapshot_id="snap_001")
defaults.update(kwargs)
return BacktestConfig(**defaults)
class TestComputeStopPrice:
def test_atr_stop(self):
from libs.backtest.allocator import compute_stop_price
c = _make_candidate(entry_price_est=100.0, atr_14=2.0)
stop = compute_stop_price(c, RiskConfig(
per_trade_risk_pct=0.01, max_daily_new_risk_pct=0.03,
max_positions=10, max_positions_per_sector=3
))
# 1.5 * ATR below price
assert stop == pytest.approx(100.0 - 1.5 * 2.0)
def test_fallback_stop_when_no_atr(self):
from libs.backtest.allocator import compute_stop_price
c = _make_candidate(entry_price_est=100.0, atr_14=None)
stop = compute_stop_price(c, RiskConfig(
per_trade_risk_pct=0.01, max_daily_new_risk_pct=0.03,
max_positions=10, max_positions_per_sector=3
))
# 2% fallback
assert stop == pytest.approx(98.0)
def test_stop_never_negative(self):
from libs.backtest.allocator import compute_stop_price
c = _make_candidate(entry_price_est=1.0, atr_14=5.0)
stop = compute_stop_price(c, RiskConfig(
per_trade_risk_pct=0.01, max_daily_new_risk_pct=0.03,
max_positions=10, max_positions_per_sector=3
))
assert stop >= 0.01
class TestComputeShares:
def test_basic(self):
from libs.backtest.allocator import compute_shares
# 1% of 100k = 1000 risk, 100-95=5 stop distance → 200 shares
shares = compute_shares(
100_000.0, 100.0, 95.0,
RiskConfig(per_trade_risk_pct=0.01, max_daily_new_risk_pct=0.03,
max_positions=10, max_positions_per_sector=3)
)
assert shares == 200
def test_always_floor(self):
from libs.backtest.allocator import compute_shares
# Result should always be floor
shares = compute_shares(
100_000.0, 100.0, 96.7,
RiskConfig(per_trade_risk_pct=0.01, max_daily_new_risk_pct=0.03,
max_positions=10, max_positions_per_sector=3)
)
# raw = 1000 / 3.3 ≈ 303.03 → floor = 303
assert shares == math.floor(1000.0 / 3.3)
def test_zero_when_stop_above_entry(self):
from libs.backtest.allocator import compute_shares
shares = compute_shares(100_000.0, 95.0, 100.0, RiskConfig(
per_trade_risk_pct=0.01, max_daily_new_risk_pct=0.03,
max_positions=10, max_positions_per_sector=3
))
assert shares == 0
class TestRunEntryGates:
def test_pass_all_gates(self):
from libs.backtest.allocator import run_entry_gates
c = _make_candidate()
ps = _make_portfolio_state()
cfg = _make_config()
assert run_entry_gates(c, ps, [], cfg) is None
def test_gate1_kill_switch(self):
from libs.backtest.allocator import run_entry_gates
c = _make_candidate()
ps = _make_portfolio_state(current_drawdown_pct=30.0)
assert run_entry_gates(c, ps, [], _make_config()) == "kill_switch_drawdown"
def test_gate2_max_positions(self):
from libs.backtest.allocator import run_entry_gates
c = _make_candidate()
ps = _make_portfolio_state()
cfg = _make_config()
cfg.risk.max_positions = 0 # impossible to add
# Mock 0 positions but max is 0
result = run_entry_gates(c, ps, [], cfg)
assert result == "max_positions_reached"
def test_gate4_sector_limit(self):
from libs.backtest.allocator import run_entry_gates
# Create a position in the same sector
plan = PlannedOrder(
candidate=_make_candidate(symbol="MSFT", sector="Technology"),
shares=10, entry_price_limit=100.0, stop_price=95.0,
target_price=110.0, risk_dollars=50.0,
)
existing_pos = OpenPosition(
position_id="p1", plan=plan, entry_date=_TODAY,
entry_price=100.0, entry_fill_slippage_bps=10.0,
current_stop=95.0, target_price=110.0, peak_price=100.0,
shares_open=10, shares_total=10,
)
cfg = _make_config()
cfg.risk.max_positions_per_sector = 1 # only 1 per sector
c = _make_candidate(symbol="AAPL", sector="Technology")
result = run_entry_gates(c, _make_portfolio_state(), [existing_pos], cfg)
assert result == "sector_limit"
def test_gate3_duplicate_symbol(self):
from libs.backtest.allocator import run_entry_gates
plan = PlannedOrder(
candidate=_make_candidate(symbol="AAPL"),
shares=10, entry_price_limit=100.0, stop_price=95.0,
target_price=110.0, risk_dollars=50.0,
)
existing = OpenPosition(
position_id="p1", plan=plan, entry_date=_TODAY,
entry_price=100.0, entry_fill_slippage_bps=10.0,
current_stop=95.0, target_price=110.0, peak_price=100.0,
shares_open=10, shares_total=10,
)
c = _make_candidate(symbol="AAPL")
result = run_entry_gates(c, _make_portfolio_state(), [existing], _make_config())
assert result == "duplicate_symbol"
def test_gate7_cooldown(self):
from libs.backtest.allocator import run_entry_gates
c = _make_candidate()
result = run_entry_gates(c, _make_portfolio_state(), [], _make_config(), cooldown_remaining=2)
assert result == "cooldown"
class TestBuildPlannedOrder:
def test_valid_order(self):
from libs.backtest.allocator import build_planned_order
c = _make_candidate(entry_price_est=100.0, atr_14=2.0)
ps = _make_portfolio_state()
order = build_planned_order(c, ps, [], _make_config())
assert order.skip_reason is None
assert order.shares > 0
assert order.stop_price < 100.0
assert order.target_price > 100.0
def test_rejected_order_has_skip_reason(self):
from libs.backtest.allocator import build_planned_order
c = _make_candidate()
ps = _make_portfolio_state(current_drawdown_pct=30.0)
order = build_planned_order(c, ps, [], _make_config())
assert order.skip_reason == "kill_switch_drawdown"
assert order.shares == 0