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Messages - Emmanuel

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151
Investors - LC / Re: Quality of loans deteriorating...
« on: December 05, 2013, 06:25:02 PM »
It wouldn't be too hard to set up a cheap server across the street from LendingClub. I wonder if you could market this to institutional investors to be a few milliseconds faster at buying loans when they get released.

LC's stuff is now all at Edgecast networks I believe, so it would be as simple as renting a server there.  They are not exactly cheap though.  So I don't think parking a server across the street in SFO would gain you much. 

Speed is 99% the algorithm/method. Those few milliseconds in transit are only relevant after you have used all of the possible tricks that exist.  Even one single extra network request (compared to the next guy) negates any savings you'd gain from being close.  So would any kind of delay between checks.  I've got servers in Sweden and I'd still be willing to go up against anyone at their back door.  But alas, I am not an institutional investor.  I am still waiting for that $25MM fund to get organized.  :)

 I'm guessing you've been told that it could come together any day now. Well, geologically speaking, I'm sure it is true.

As fas as we know, their servers are in Las Vegas, Nevada. So anything on the west coast is pretty speedy already.
Also, keep in mind that unlike High Frequency Trading, a) there's no real secondary market yet, b) the upside is limited to the (slight) inaccuracy of interest rates vis--vis risks.

152
Investors - LC / Re: New LC Prime
« on: December 05, 2013, 06:12:23 PM »
I wonder how well Prime will get you into the perfect-credit, 24% notes that usually get eaten up within 10 seconds.

Prime is a great solution for people seeking peace of mind and simple automation, but is not for snatching up most popular loans.
As described by LendingClub: "PRIME is not a solution for limited inventory. If you place orders more frequently than once per week, the PRIME service may not be for you."

Also, still in LendingClub's words "PRIME will not fund the last dollars of any loan listing in order to reserve inventory for non-PRIME accounts.", so paradoxically a non-Prime investor is more likely to get access to some of those fast-funded loans. Provided he has some very fast fingers.

Disclaimer: as a co-founder of LendingRobot.com, I may be biased on that topic.

153
Investors - LC / Re: Lending robot
« 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 ;-)

154
Investors - LC / Re: Lending robot
« 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.

155
Investors - LC / Re: Lending robot
« 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.

156
Investors - LC / Re: Lending robot
« 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%.

157
Investors - LC / Re: Lending robot
« 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.

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