Lend Academy Network Forum

Lending Club Discussion => Investors - LC => Topic started by: faeriering on November 17, 2013, 08:23:51 AM

Title: Lending robot
Post by: faeriering on November 17, 2013, 08:23:51 AM
Hey guys,

I saw this while reading through the news this morning:  www.lendingrobot.com
I like IR, but I was wondering if anyone had heard about/used this site.  The encryption sounded good, but I'm not an encryption person so it might have all been fluff.

Peter have you covered this site on your blog?  I'm really kind of surprised that someone is out there offering services (for a fee) for LC and they aren't on this forum . . . is there another place for news.  Obviously I'm spending too much of my research time with Renton filtered content :).

Peter I do love your site!

Thanks!
megan
Title: Re: Lending robot
Post by: giladg on November 18, 2013, 06:03:22 PM
Hi Megan,
My name is Gilad Golan, and I'm the founder and CEO of LendingRobot. LendingRobot  (https://lendingrobot.com/ (https://lendingrobot.com/)) is pretty new; we've been working on it  for a while, and last week it came out of beta, where we made multiple improvements based on feedback from real users. We're welcoming all LendAcademy readers to give it a try, and would love to hear your feedback and suggestions.

Regarding your question about security - we take security very seriously (note about my background: a few years ago I sold my data security startup to Microsoft). Your LendingClub credentials are strongly encrypted, and protected by multiple protection tiers.

Regards,
Gilad.
Title: Re: Lending robot
Post by: Paisan on November 18, 2013, 06:35:07 PM
Pretty Slick interface for the "Lending Club Explorer" tab.

Do I need to give my LC login to sign up & check out your filters?

Can I get an invitation link?

Ciao
Title: Re: Lending robot
Post by: TonySaunders on November 18, 2013, 06:46:06 PM
I'm in line to sign up.

I want an invitation link as well.
Title: Re: Lending robot
Post by: giladg on November 18, 2013, 08:23:16 PM
To start investing with LendingRobot, please leave your email at https://lendingrobot.com/accounts/signup/ (https://lendingrobot.com/accounts/signup/), and expect to receive an invitation link in a few days.
We are ramping up gradually while carefully monitoring our scale and performance and ensuring we continue to meet our benchmarks; our goal is to submit investment orders for all our users no later than 30 seconds after LendingClub releases new loans.

Gilad.
Title: Re: Lending robot
Post by: faeriering on November 18, 2013, 09:15:16 PM
Gilad,

Thanks for all the quick info.  I think I traded some emails with your partner.  I like the interface, and the idea.  I don't really feel like the filters offer the flexibility I need especially for getting to loans that I would be willing to blindly invest in.  Glad to hear about the data security.  If I could blend your work with the filtering options I have on IR (or lendstats or even excel) I'd be really interested in paying to get in on notes in 30 sec.

Good luck :)
Title: Re: Lending robot
Post by: Lovinglifestyle on November 18, 2013, 09:39:46 PM
My question is how many seconds does it take to get the notes in the shopping cart, before submission?

Aside from that, what megan said about the filtering options except that the ones I have on PeerCube are the most blindly reliable for me.  IR is secondary to PC for my purposes, but IR's individual loan detail page cache has fewer that don't show after the copy and paste exercise.
Title: Re: Lending robot
Post by: giladg on November 18, 2013, 10:28:55 PM
In choosing which filtering options to offer we tried to strike a balance between flexibility on one hand and simplicity/ease-of-use on the other hand. We fully expect to add more filtering criteria over time, but we'd rather do that based on investor feedback and demand rather than simply adding all the filters currently offered by LendingClub, which may result with  cluttered and confusing user interface.

So if there are any specific filtering options people are missing, we'd love to hear about those.

BTW, note that we offer the 'popular loans' filtering option, which for some people saves the need to do their own research and filtering; in a way, it is like "crowdsourcing the hedge funds". The way it works: a few seconds (typically 5 seconds) after new loans are released we take a snapshot of the loans, and rank them by popularity (who got the highest funding).
You can then include that as a parameter in your rules - for example, you can build a rule "invest in loans grade C,D,E,F, with loan purpose 'credit card refinancing', and that are in the top 10% of popular loans".

Gilad.
Title: Re: Lending robot
Post by: giladg on November 18, 2013, 10:32:12 PM
My question is how many seconds does it take to get the notes in the shopping cart, before submission?


Our goal is to have all orders, for all our users, fully submitted no later than 30 seconds after new loans are released.
Our data show that quite a few of the most popular loans are gone in seconds (we'll post more detailed info on that in the near future), therefore speed is critical to achieve higher returns.
Title: Re: Lending robot
Post by: Joleran on November 18, 2013, 10:49:50 PM
Our goal is to have all orders, for all our users, fully submitted no later than 30 seconds after new loans are released.
Our data show that quite a few of the most popular loans are gone in seconds (we'll post more detailed info on that in the near future), therefore speed is critical to achieve higher returns.

My personal experience is that 30 seconds is far too long - the cream of the crop are gone in less than 10 seconds, though sometimes some of them pop back up for a second or two as people later decline them in their carts. 
Title: Re: Lending robot
Post by: core on November 18, 2013, 11:01:14 PM
BTW, note that we offer the 'popular loans' filtering option, which for some people saves the need to do their own research and filtering; in a way, it is like "crowdsourcing the hedge funds". The way it works: a few seconds (typically 5 seconds) after new loans are released we take a snapshot of the loans, and rank them by popularity (who got the highest funding).

Interesting idea.  So if one single investor comes in and snatches up 70% of a loan in the first few seconds (possibly without even examining it), everyone else is going to jump on like a pile of football players who tackled the wrong guy. Heheh.   Oh and then it would be possible to use the shopping cart loophole to 'fake out' those using this approach, possibly as a diversion, without it costing a cent since the 70% could be tossed back.  Fun with with robots!
Title: Re: Lending robot
Post by: giladg on November 19, 2013, 12:41:54 AM
BTW, note that we offer the 'popular loans' filtering option, which for some people saves the need to do their own research and filtering; in a way, it is like "crowdsourcing the hedge funds". The way it works: a few seconds (typically 5 seconds) after new loans are released we take a snapshot of the loans, and rank them by popularity (who got the highest funding).

Interesting idea.  So if one single investor comes in and snatches up 70% of a loan in the first few seconds (possibly without even examining it), everyone else is going to jump on like a pile of football players who tackled the wrong guy. Heheh.   Oh and then it would be possible to use the shopping cart loophole to 'fake out' those using this approach, possibly as a diversion, without it costing a cent since the 70% could be tossed back.

It's easy to test for yourself if you want to use it as part of your strategy - at every investment round we publish the ranking of the most popular loans at https://lendingrobot.com/#/popular (https://lendingrobot.com/#/popular), so all you have to do is monitor that and see if you like the selection.
There is a lot of activity in the first few seconds, mostly by hedge funds and other institutional investors using automated tools - it would be very hard for any single investor to game the overall stats.

And again, this is an optional tool - if you are confident with your own criteria, you don't have to use it.
Title: Re: Lending robot
Post by: TonySaunders on November 19, 2013, 12:27:25 PM
Our goal is to have all orders, for all our users, fully submitted no later than 30 seconds after new loans are released.
Our data show that quite a few of the most popular loans are gone in seconds (we'll post more detailed info on that in the near future), therefore speed is critical to achieve higher returns.

My personal experience is that 30 seconds is far too long - the cream of the crop are gone in less than 10 seconds, though sometimes some of them pop back up for a second or two as people later decline them in their carts.

Agreed. 30 seconds is too slow. It's stupid, but it's the reality.
Title: Re: Lending robot
Post by: Emmanuel on November 19, 2013, 12:58:57 PM
Just to clarify, LendingRobot investment is usually much faster than 30 seconds.
For 'fast rules' (the ones not requiring first to gauge loans popularity), submission is most likely under 10 seconds.
Title: Re: Lending robot
Post by: ggnoob1337 on November 19, 2013, 01:37:29 PM
Question on pricing...

"Only 0.49% of orders submitted. No setup fees, no monthly minimum."

So I get charged for the cost of the orders submitted, not just the notes that get issued? That could mean that if I deposit $450 a month into my Roth IRA that I end up getting charged based on an investment of $800 because of all of the loans that are cancelled or denied before they are issued and I get the money back to re-invest.

Other than that, I'm interested to check this out.
Title: Re: Lending robot
Post by: Paisan on November 19, 2013, 02:47:36 PM
Interesting idea.  So if one single investor comes in and snatches up 70% of a loan in the first few seconds (possibly without even examining it), everyone else is going to jump on like a pile of football players who tackled the wrong guy. Heheh.   Oh and then it would be possible to use the shopping cart loophole to 'fake out' those using this approach, possibly as a diversion, without it costing a cent since the 70% could be tossed back.  Fun with with robots!

I like the way you think Core!
Title: Re: Lending robot
Post by: Emmanuel on November 19, 2013, 05:07:54 PM
Question on pricing...

"Only 0.49% of orders submitted. No setup fees, no monthly minimum."

So I get charged for the cost of the orders submitted, not just the notes that get issued? That could mean that if I deposit $450 a month into my Roth IRA that I end up getting charged based on an investment of $800 because of all of the loans that are cancelled or denied before they are issued and I get the money back to re-invest.

Other than that, I'm interested to check this out.

First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.
Title: Re: Lending robot
Post by: ggnoob1337 on November 19, 2013, 08:34:19 PM
Question on pricing...

"Only 0.49% of orders submitted. No setup fees, no monthly minimum."

So I get charged for the cost of the orders submitted, not just the notes that get issued? That could mean that if I deposit $450 a month into my Roth IRA that I end up getting charged based on an investment of $800 because of all of the loans that are cancelled or denied before they are issued and I get the money back to re-invest.

Other than that, I'm interested to check this out.

First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

Makes sense, thanks for the reply!
Title: Re: Lending robot
Post by: william on November 24, 2013, 01:06:22 AM
Interesting... I have multiple LC accounts, will it be possible to create just 1 Lending Robot account or will I have to create a separate one for each LC account I have?
Title: Re: Lending robot
Post by: drknexus on November 24, 2013, 09:47:31 PM
First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

I guess it might be marketing nonsense driving the urge to advertise .49%.  However, as a potential customer I have to say if you are really targeting, .7% I'd rather that is what you did straight out on completed investment orders.  If you charge based on completed investment then I am paying a known rate going into things that I can compare in a sensible manner rather than an actual cost that will bounce around a bit from time to time (my portfolio isn't big enough than missed orders can be ignored in the noise and averaged out).  Your variable costs for this operation can't be so high that it is important to charge on your potential variable costs by order can they?
Title: Re: Lending robot
Post by: Emmanuel on November 25, 2013, 11:10:43 AM
Interesting... I have multiple LC accounts, will it be possible to create just 1 Lending Robot account or will I have to create a separate one for each LC account I have?

For the moment being, you will have to create separate accounts, like on LendingClub. We know it's a hindrance, but it doesn't have any impact on LendingRobot cost, since they're only based on the orders amount.
Title: Re: Lending robot
Post by: Emmanuel on November 26, 2013, 08:09:25 PM
First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

I guess it might be marketing nonsense driving the urge to advertise .49%.  However, as a potential customer I have to say if you are really targeting, .7% I'd rather that is what you did straight out on completed investment orders.  If you charge based on completed investment then I am paying a known rate going into things that I can compare in a sensible manner rather than an actual cost that will bounce around a bit from time to time (my portfolio isn't big enough than missed orders can be ignored in the noise and averaged out).  Your variable costs for this operation can't be so high that it is important to charge on your potential variable costs by order can they?

The reason is only that it's much simpler. Invoicing our service only for invested loans will require to monitor the loan changing in status, and to do additional housekeeping. That being said, your remarks make a lot of sense.
Title: Re: Lending robot
Post by: Emmanuel on December 05, 2013, 06:00:41 PM
First, LendingRobot never tries to submit orders exceeding your current cash available (you can even define a limit, so you can continue investing manually as well). But mostly, the 0.49% is based on the orders submitted when the submission went through (so we got confirmation from LendingClub). Based on history, about 30% of loans get cancelled or denied after that. Our target fee is 0.7% of investments, hence the 0.7 * (1-30%) = 0.49% of submission. We'll adjust that in the future if we see the % of cancelled orders deviating too much from that 30%.

I guess it might be marketing nonsense driving the urge to advertise .49%.  However, as a potential customer I have to say if you are really targeting, .7% I'd rather that is what you did straight out on completed investment orders.  If you charge based on completed investment then I am paying a known rate going into things that I can compare in a sensible manner rather than an actual cost that will bounce around a bit from time to time (my portfolio isn't big enough than missed orders can be ignored in the noise and averaged out).  Your variable costs for this operation can't be so high that it is important to charge on your potential variable costs by order can they?

Starting today, LendingRobot only charges for completed investments. We wait to get the confirmation the loan has been issued before computing our fees. (that are 0.69% of investments... still maybe a slight marketing gimmick ;-)
Title: Re: Lending robot
Post by: Inflationhawk on December 05, 2013, 07:41:22 PM
Not sure I'll use the service yet, but I think this is a really good decision and shows transparency.  I'm going to try to continue ramping up my investments manually, but if I get in a time crunch I like the option of using your service.
Title: Re: Lending robot
Post by: Fred on December 05, 2013, 10:50:47 PM
Emmanuel & giladg:

I used to live in Seattle for many years, near Mill Creek / Everett area, so it is nice to see people in this forum from the area.

I welcome new tools like yours to the P2P world.  This is creating a healthy competition, which should be good for the end users.  However, as investors, we owe it ourselves to do our due diligence.  If you read this forum, many of us have been slightly burned with IR recently; and we certainly do not need another healthcare.gov situation.

1. Can you share your high level SLA (Service Level Agreement)? 
 - service availability (99.9% uptime?)
 - notifications during outage
 - bug fixes release (how soon after identified)
 - customer refunds on SLA breaches
 - capacity planning (get new hardware for each 1000 users)

2. Do you plan to provide an interface to the secondary market (FOLIOfn)?

3. Do you still plan to have the 30-second goal after this week's LC stealthy changes?
Title: Re: Lending robot
Post by: PeerSocialLending on December 06, 2013, 01:58:24 PM
I have reached out to the folks at LendingRobot and will hopefully have something posted on our blog for people to get more information about LendingRobot soon. Stay tuned!
Title: Re: Lending robot
Post by: giladg on December 06, 2013, 08:56:58 PM
Emmanuel & giladg:

I used to live in Seattle for many years, near Mill Creek / Everett area, so it is nice to see people in this forum from the area.

I welcome new tools like yours to the P2P world.  This is creating a healthy competition, which should be good for the end users.  However, as investors, we owe it ourselves to do our due diligence.  If you read this forum, many of us have been slightly burned with IR recently; and we certainly do not need another healthcare.gov situation.

1. Can you share your high level SLA (Service Level Agreement)? 
 - service availability (99.9% uptime?)
 - notifications during outage
 - bug fixes release (how soon after identified)
 - customer refunds on SLA breaches
 - capacity planning (get new hardware for each 1000 users)

2. Do you plan to provide an interface to the secondary market (FOLIOfn)?

3. Do you still plan to have the 30-second goal after this week's LC stealthy changes?

Fred,
These are great questions - I'm glad you brought them up.  I'll need more time to address all of them, but there's one quick point I want to make about SLA: SLA for a service like LendingRobot is different than that of other online services; the notion of "how many nines" (99.9%, 99.99% or 99.999% uptime) is less crucial here; there are 4 times a day a period of approx. 20 seconds that you absolutely want the service to work - that is when new loans are made available; that is how we like to measure ourselves.

I'm happy to say that since the day we started with a limited beta last summer until today, LendingRobot never missed a single investment round. The service was taken down a few times for planned maintenance and upgrades; it lasted a few minutes every time, and was always scheduled not to coincide with an investment round.
Title: Re: Lending robot
Post by: skr5e on December 06, 2013, 10:10:47 PM
I have a semi-automated setup that I use to get C4-E5 loans reliably, which otherwise sell within 5 seconds of them being posted.
I'll be competing against my own LR account that I just set up with the same filter criteria, should be interesting to see which one of us comes out on top.

Also, I was kind of annoyed that there was a "coupon code" box and I didn't have a code. What's up with that, aren't we among the first "commercial" adopters?


Title: Re: Lending robot
Post by: Bohb Daishi on December 09, 2013, 02:55:14 AM
2. Do you plan to provide an interface to the secondary market (FOLIOfn)?

I would like to know this as well.
Title: Re: Lending robot
Post by: brycemason on December 09, 2013, 04:05:22 PM
Also, I was kind of annoyed that there was a "coupon code" box and I didn't have a code. What's up with that, aren't we among the first "commercial" adopters?

Everyone knows early adopters pay the most! No soup for you!
Title: Re: Lending robot
Post by: PeerSocialLending on December 09, 2013, 07:52:33 PM
We just posted our Q & A with Emmanuel from LendingRobot.  Feel free to post in the comments section as Emmanuel will be checking it to answer any questions.  http://peersociallending.com/interviews/lendingrobot-third-party-automated-investing-tool/
Title: Re: Lending robot
Post by: New Jersey Guy on December 10, 2013, 01:21:15 PM
This is all warm and fuzzy, but Fred's question from the 5th has still gone answered.

"Do you plan to provide an interface to the secondary market (FOLIOfn)?"
Title: Re: Lending robot
Post by: rlv99 on December 10, 2013, 01:31:33 PM
I've signed up.  Now I need an invitation link
Title: Re: Lending robot
Post by: giladg on December 10, 2013, 01:37:01 PM
Emmanuel & giladg:

I used to live in Seattle for many years, near Mill Creek / Everett area, so it is nice to see people in this forum from the area.

I welcome new tools like yours to the P2P world.  This is creating a healthy competition, which should be good for the end users.  However, as investors, we owe it ourselves to do our due diligence.  If you read this forum, many of us have been slightly burned with IR recently; and we certainly do not need another healthcare.gov situation.

1. Can you share your high level SLA (Service Level Agreement)? 
 - service availability (99.9% uptime?)
 - notifications during outage
 - bug fixes release (how soon after identified)
 - customer refunds on SLA breaches
 - capacity planning (get new hardware for each 1000 users)

2. Do you plan to provide an interface to the secondary market (FOLIOfn)?

3. Do you still plan to have the 30-second goal after this week's LC stealthy changes?

Fred, good questions - answers below:

1. Can you share your high level SLA (Service Level Agreement)? 
 - service availability (99.9% uptime?)
 - notifications during outage
 - bug fixes release (how soon after identified)
 - customer refunds on SLA breaches
 - capacity planning (get new hardware for each 1000 users)

As I wrote in a previous post - we donít measure ďuptimeĒ in the traditional sense, as thatís not what our users care about; what they want to know is whether we hit all the times that LC releases new loans; and the answer is yes - we havenít missed a single loan batch yet. We have had a few planned downtimes for maintenance or upgrades, never lasting more than a few minutes.

In general, we take service availability very seriously - you can check our own background in https://lendingrobot.com/about to see that we have years of experience running internet scale services. Our service is heavily instrumented for operational monitoring; if something goes wrong, our phones immediately start beeping.

Customer refunds - we have no fixed monthly fees; customers only pay if and when we successfully invest for them in loans that met their strategy, so if we fail weíre simply not paid.

Bug fixes - we constantly upgrade and enhance the service; urgency and speed depend on the severity of the issue - if itís a serious problem weíll drop everything and push a fix ASAP.

Capacity planning - we operate the service on a cloud platform, so we can provision more capacity in minutes. We constantly monitor our capacity; we provision enough compute power so we can process all usersí accounts simultaneously.

2. Do you plan to provide an interface to the secondary market (FOLIOfn)?
Itís on our roadmap, but we canít commit to a date yet.

3. Do you still plan to have the 30-second goal after this week's LC stealthy changes?
Absolutely; we strive to submit most orders faster than that. Keep in mind that orders that use our ďpopular loansĒ filter (https://lendingrobot.com/#/popular) require a delay of a few seconds for popularity measurement; but they are still executed within the 30 seconds limit.
Title: Re: Lending robot
Post by: giladg on December 10, 2013, 02:32:55 PM
This is all warm and fuzzy, but Fred's question from the 5th has still gone answered.

"Do you plan to provide an interface to the secondary market (FOLIOfn)?"

Yes, it's in our plans.
Title: Re: Lending robot
Post by: Fred on December 10, 2013, 10:08:30 PM
Thanks giladg for taking the time to answer my questions.
Title: Re: Lending robot
Post by: BruiserB on January 01, 2014, 01:29:58 PM
I've signed up.  Now I need an invitation link

Same here.  Is anyone on this forum a member with a link to share?
Title: Re: Lending robot
Post by: Emmanuel on January 01, 2014, 01:38:18 PM
I've signed up.  Now I need an invitation link

Same here.  Is anyone on this forum a member with a link to share?

The latest batch of invites was sent a few minutes ago. Hopefully you're both in!
Title: Re: Lending robot
Post by: BruiserB on January 05, 2014, 07:29:35 PM
I've signed up.  Now I need an invitation link

Same here.  Is anyone on this forum a member with a link to share?

The latest batch of invites was sent a few minutes ago. Hopefully you're both in!


Yep!  I literally got the invite minutes after posting on here!  I had submitted both email addresses I use for my two lending club accounts.  I only received an invite to the first one I submitted, but I was able to set up the first account, then went back to the invite again and the same link let me set up my IRA account as well.  After just two days, I love Lending Robot!! First time in forever I've been able to get all of my free cash invested in loans that actually meet my criteria!!  So excited that I've just put additional funds in both of my accounts and am anxious to watch Lending Robot go to work this week!!
Title: Re: Lending robot
Post by: skr5e on January 13, 2014, 05:41:36 PM
LR has made some interesting new updates lately, including API integration and calculating expected # of loans on the fly. Looks like they're making an effort to stay on top of things but I wonder if it will be enough to compete with other auto-investing sites.
Title: Re: Lending robot
Post by: Agflyer on January 24, 2014, 06:11:18 PM
I'm a newbie to register on the forums, but a long time peer to peer investor ('06).  Would somebody mind sending me an invitation link?  Thanks in advance!  :D
Title: Re: Lending robot
Post by: core on January 24, 2014, 06:31:57 PM
I'm a newbie to register on the forums, but a long time peer to peer investor ('06).  Would somebody mind sending me an invitation link?  Thanks in advance!  :D

Welcome to the forum, Agflyer!  I don't have an invite link, but I'm sure someone here can rustle one up for you. 

I was struck by the '06.  (I don't think I've seen an 06 before around here before)  Long time p2p investor indeed.  Are you a crop duster pilot, or do you fly around chickens for a living?  :)  I'm a pilot myself, but don't have the guts for either of those activities.  Be sure to post a thread in the intro section.  I'd love to hear more about what you do.
Title: Re: Lending robot
Post by: Agflyer on January 24, 2014, 06:48:47 PM
Thanks for the welcome and the intro advice to a fellow pilot.  I'll head over there right now! 
Title: Re: Lending robot
Post by: ggnoob1337 on January 24, 2014, 07:34:50 PM
I'm a newbie to register on the forums, but a long time peer to peer investor ('06).  Would somebody mind sending me an invitation link?  Thanks in advance!  :D

I sent you an invite link (or at least I think I did).
Title: Re: Lending robot
Post by: Rob L on January 24, 2014, 07:45:00 PM
Another pilot chimes in... good luck Agflyer!
Title: Re: Lending robot
Post by: Emmanuel on January 24, 2014, 07:52:36 PM
Would somebody mind sending me an invitation link?

Did you sign up on the waiting list from https://lendingrobot.com/accounts/signup/ (https://lendingrobot.com/accounts/signup/)?
We shall send another batch of invites tonight or tomorrow...
Title: Re: Lending robot
Post by: Agflyer on January 24, 2014, 11:44:40 PM
I got the invite.  Thank you very much for the quick responses!
Title: Re: Lending robot
Post by: BruiserB on January 26, 2014, 05:00:32 PM
I have a question about the "popular" filter that Lending Robot has.  I have set one up to screen for the top 10% popular loans.  However it seems to be selecting some loans that don't seem very popular at all.

I often log into my LendingClub account a few minutes after orders have gone through.  I click on the "orders" menu to view the orders that were placed.  I usually have two orders for each note release time...one for my filters that don't depend on popularity and one for my popular filter (as there is a delay while Lending Robot calculates popularity.  However when I look at the loans that were purchased, I often see a few that don't seem very popular at all as they are only 2-3% funded.   And if I go back a short time (an hour or two) later, they may still only be 20% funded.  How did these loans ever make the "popular" cut?  Could they have been placed into some investor's cart during the time when LendingRobot calculates popularity, but then never actually purchased by that investor?  If so then it would seem that someone could be gaming the system by placing large investments in some loans but then never completing the purchase.  I'm not sure this is what's happening, but it's the only explanation I can think of.  I'm thinking of disabling my popular filter because it seems unreliable.
Title: Re: Lending robot
Post by: Rob L on January 26, 2014, 06:29:32 PM
This cat has been let out of so many bags it must have far more than 9 lives. Let me point to the following thread, and particularly the first two paragraphs of the opening post by GS:
http://www.lendacademy.com/forum/index.php?topic=1907.msg16826;topicseen#msg16826 (http://www.lendacademy.com/forum/index.php?topic=1907.msg16826;topicseen#msg16826)
The "shopping cart exploit" is being used by boys and girls; men, women and children of all ages; one and all (and almost certainly ALL fractional note institutional investors).
I could spell it out in much more excruciating detail but I won't. It's simply faster and more flexible than the API. It's not gaming the system, it's just what works (now).
Everyone who has the technology and funding carts notes first, then filters; period.
Of course it's not compliant with LC TOS, but then again if you ask them "Mother may I" first you might be okay. If not then their whim is your command.
Meanwhile I wouldn't confuse quickly funded loans with the good stuff (whatever that is).

PS: There are other ways to skin said cat, but I haven't seen them spelled out in sufficient detail to do so myself.
Title: Re: Lending robot
Post by: BruiserB on January 27, 2014, 11:32:06 AM
I suspected something like this was responsible for these "popular" loans to in fact not be so popular.  Given that this sort of game playing is going on, I think there isn't much value to Lending Robot having the popularity screening attribute.  Unless Lending Club is able to provide data on amount actually funded vs just "reserved" but not later funded, then it won't be possible to have this sort of tool. 

I agree that following the heard is probably a questionable strategy anyway, but I put a rule at the end of all my others that just was screening for the top 10%.  I figured I'd buy a few that way and see how the returns turned out.  I will probably disable that rule now, given what I'm seeing happening.  Would be interested to have feedback from Lending Robot on this issue.
Title: Re: Lending robot
Post by: giladg on January 27, 2014, 12:36:08 PM
I suspected something like this was responsible for these "popular" loans to in fact not be so popular.  Given that this sort of game playing is going on, I think there isn't much value to Lending Robot having the popularity screening attribute.  Unless Lending Club is able to provide data on amount actually funded vs just "reserved" but not later funded, then it won't be possible to have this sort of tool. 

I agree that following the heard is probably a questionable strategy anyway, but I put a rule at the end of all my others that just was screening for the top 10%.  I figured I'd buy a few that way and see how the returns turned out.  I will probably disable that rule now, given what I'm seeing happening.  Would be interested to have feedback from Lending Robot on this issue.

To mitigate this risk you can always combine popularity based rules with other criteria you consider good indicators -e.g. 10% most popular + grades C to E + 0 inquiries last 6 months + 0 public records.
Quite a few investors do that, applying a "sanity check" to the crowd wisdom.
Title: Re: Lending robot
Post by: dontvote on January 27, 2014, 12:39:33 PM
For the record (and it's a popular opinion, to be sure), 'popularity' is a ridiculous reason to select an investment for your portfolio.

donotrecommend
Title: Re: Lending robot
Post by: BruiserB on January 27, 2014, 04:26:23 PM
To mitigate this risk you can always combine popularity based rules with other criteria you consider good indicators -e.g. 10% most popular + grades C to E + 0 inquiries last 6 months + 0 public records.
Quite a few investors do that, applying a "sanity check" to the crowd wisdom.

That is actually similar to what I do have.  8)   And I agree that popularity shouldn't  be one's main criteria, but I did find the idea intriguing, so I decided to give the filter a try and only after all of my other selection criteria are exhausted.  But since it's not actually based on funds that are invested and not just in a shopping cart, then it doesn't even stand up as something worth experimenting with.  I might as well just buy random loans!
Title: Re: Lending robot
Post by: Rob L on January 29, 2014, 10:31:20 AM
The article "146: The Magic Number ..." is quite interesting, as is the associated chart:
http://blog.lendingrobot.com/ (http://blog.lendingrobot.com/)
https://www.lendingrobot.com/data (https://www.lendingrobot.com/data)
Thanks for all the charts and data presented there.

Seems everyone has an opinion on the number of loans needed to be diversified. 800, 400, 200, etc.

Isn't it true that the riskier the loans then the more of those loans I need to own to reduce that risk by diversification?

Rather than "146", there's a different magic number (and curve) associated with each loan grade (and sub grade). Those curves and numbers would be nice to see.
That way I could look at my portfolio and say for diversification purposes that I have plenty of C's but not nearly enough E's, etc. Or, I can buy fewer/larger low risk notes but must buy more/smaller high risk notes to be diversified (something at complete odds with LC loan availability).

If not true (very possible given my limited level of understanding) then a few words about what I fail to understand would be appreciated.

Title: Re: Lending robot
Post by: dontvote on January 29, 2014, 07:33:26 PM
I'm not sure I fully appreciate the 'independence' of the loans in their analysis. While I agree that the boob job loan in Kansas doesn't have a lot to do with the get rich quick scam in Florida (you know who you are), there is no doubt that the return and the likelihood of loans defaulting and their real returns are significantly correlated. If the economy goes bad we'll all have more defaults and if you have 146 loans you'll do better than the guy who has 6 loans but seems like maybe worse than the guy who has 500 loans. the idea that there is a zero connection between the two outcomes at a fundamental level seems misguided.
Title: Re: Lending robot
Post by: Emmanuel on January 29, 2014, 08:07:48 PM
If the economy goes bad we'll all have more defaults. [...]. The idea that there is a zero connection between the two outcomes at a fundamental level seems misguided.

The loans themselves are disconnected (although there may be some connection between plastic surgery and get-rich schemes, who knows?), but you're right that they are ultimately all linked to the economy. Unfortunately at this stage we still don't have enough data to assess the independence of P2P loans. As far as consumer credit is concerned, there's definitely a bump in default in 2009, and it's not the flat, noisy line of a truly random variable (even if there's still less momentum than on the real-estate or the stock market):

(https://forum.lendacademy.com/proxy.php?request=http%3A%2F%2Fmarotte.net%2Flr_fedres_stats_defaults.jpg&hash=a82f9dba0853a2fa548b218ef3d744b9)

In any case, the monte-carlo simulation is based on 'old' LC loans, many of them issued in 2008-, so in a way the bad scenario is already accounted for.
Title: Re: Lending robot
Post by: sun2gz on February 17, 2014, 02:35:43 PM
Question on pricing...

"Only 0.49% of orders submitted. No setup fees, no monthly minimum."

So I get charged for the cost of the orders submitted, not just the notes that get issued? That could mean that if I deposit $450 a month into my Roth IRA that I end up getting charged based on an investment of $800 because of all of the loans that are cancelled or denied before they are issued and I get the money back to re-invest.

Other than that, I'm interested to check this out.

I possess the same concern. The successful invest rate can be less than 50%, so the actual charge by IR is ~1%.
Title: Re: Lending robot
Post by: BruiserB on February 17, 2014, 02:41:20 PM
I possess the same concern. The successful invest rate can be less than 50%, so the actual charge by IR is ~1%.

That's no longer the way they calculate their charges.  They now charge 0.69% of notes that actually complete and issue.
Title: Re: Lending robot
Post by: adventurerneil on February 22, 2014, 02:14:32 AM
So if there are any specific filtering options people are missing, we'd love to hear about those.

I'd like to put my vote in for Revolving Credit Utilization as a new filtering criteria for LR. It slices and dices! ;)
Title: Re: Lending robot
Post by: giladg on February 22, 2014, 03:36:06 AM
So if there are any specific filtering options people are missing, we'd love to hear about those.

I'd like to put my vote in for Revolving Credit Utilization as a new filtering criteria for LR. It slices and dices! ;)

Thanks for the feedback - stay tuned, more filtering options are in the pipeline.
Title: Re: Lending robot
Post by: adventurerneil on March 05, 2014, 01:22:57 AM
So if there are any specific filtering options people are missing, we'd love to hear about those.

I'd like to put my vote in for Revolving Credit Utilization as a new filtering criteria for LR. It slices and dices! ;)

Thanks for the feedback - stay tuned, more filtering options are in the pipeline.

Also, "accounts opened in the last 24 months" is handy for chopping off risky segments...    thanks in advance!