Author Topic: Staleness of Data/Model Score  (Read 557 times)

Shawnthgreta

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Staleness of Data/Model Score
« on: November 15, 2016, 03:46:46 PM »
I am fairly new to P2P investing, I have read the forum and various blogs (Lend Academy and LendingMemo) extensively.

This tool seemed to be one of the best for using a no-fee propriety credit algorithm. However, I have a few questions about how to best use the tool.

1. How old is the historical note data? When I compare it to NSR, the note counts seem to be materially different.

2. How should I interpret the model score? Is it a percentile or a % chance to default over the time to maturity? Or just a score without units?

3. Any filter advice? I am looking for an aggressive type strategy (fairly risk tolerant). I was considering C-G grades with 0 6 month inquires, 3+ years employment, and a clean collections/public records.

4. I am a little concerned with cash drag, I am only deploying 5k (until I have a better feel), however it appears this will take a little while to deploy $25 at a time. Any advice? I have read, that I have to diversify atleast 200 notes to take significant risk out.

5. Any documentation that I am missing? Overall, it looks like the model is not really still under active development?

I appreciate your assistance, it looks like there is a good community around P2P lending here. I have enjoyed reading through many of the posts.

Shawnthgreta

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Re: Staleness of Data/Model Score
« Reply #1 on: December 01, 2016, 11:26:17 AM »
I guess no one uses this anymore? Any better ideas? I have been using it and it appears to work well.

starkc69

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Re: Staleness of Data/Model Score
« Reply #2 on: January 31, 2017, 02:20:24 AM »
I'm considering using PLS myself.  Thanks for sharing your recent discoveries. I think I'll still give it a try.  I noticed their "Free" advertisement, but what fees have you come across that will be required for continued use?  Thanks for your time Shawn.