"""Tests for the flex-spending engine.""" from __future__ import annotations import numpy as np import pytest from fire_planner.flex_spending import FlexRule, applicable_cut, cuts_per_year def test_applicable_cut_picks_deepest_rule() -> None: rules = [ FlexRule(from_ath_pct=0.10, cut_discretionary_pct=0.20), FlexRule(from_ath_pct=0.30, cut_discretionary_pct=0.60), FlexRule(from_ath_pct=0.50, cut_discretionary_pct=0.90), ] # No drawdown — no cut. assert applicable_cut(0.0, rules) == 0.0 # 9% drop — below first threshold. assert applicable_cut(0.09, rules) == 0.0 # 15% drop — only first rule fires. assert applicable_cut(0.15, rules) == pytest.approx(0.20) # 35% drop — first + second; deepest cut wins (0.60, not 0.80). assert applicable_cut(0.35, rules) == pytest.approx(0.60) # 60% drop — all three; 0.90 wins. assert applicable_cut(0.60, rules) == pytest.approx(0.90) def test_applicable_cut_empty_rules() -> None: assert applicable_cut(0.5, []) == 0.0 def test_cuts_per_year_handles_running_ath() -> None: # Single path. Year 0 seed=1000, year 1 = 1200 (new ATH), year 2 = 800 # (-33% from ATH 1200), year 3 = 900 (still -25% from ATH 1200), year # 4 = 1300 (new ATH). portfolio = np.array([[1000, 1200, 800, 900, 1300]], dtype=np.float64) rules = [ FlexRule(from_ath_pct=0.10, cut_discretionary_pct=0.20), FlexRule(from_ath_pct=0.30, cut_discretionary_pct=0.60), ] cuts = cuts_per_year(portfolio, rules) # cuts[:, y] uses portfolio[:, y] (start-of-year decision based on # the prior year's close). # y=0: portfolio=1000 == ATH → 0 # y=1: portfolio=1200 == ATH → 0 # y=2: drawdown = 1 - 800/1200 = 0.333 → 0.60 # y=3: drawdown = 1 - 900/1200 = 0.25 → 0.20 assert cuts.shape == (1, 4) assert cuts[0, 0] == pytest.approx(0.0) assert cuts[0, 1] == pytest.approx(0.0) assert cuts[0, 2] == pytest.approx(0.60) assert cuts[0, 3] == pytest.approx(0.20) def test_cuts_per_year_no_rules_returns_zeros() -> None: portfolio = np.array([[1000, 800, 600]], dtype=np.float64) cuts = cuts_per_year(portfolio, []) assert cuts.shape == (1, 2) assert (cuts == 0).all()