Author Topic: Using BluePicks with or without additional filters  (Read 5043 times)

lendbie

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Using BluePicks with or without additional filters
« on: July 19, 2015, 05:36:58 PM »
I just started using BPAggressive BluePicks with additional filters such as only E/F/G notes, no public records, etc. Any ideas as to whether this may enhance or hurt the BluePicks returns and whether there would be any way to measure the predicted returns based on this additional filtering? Thank you.

lascott

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Re: Using BluePicks with or without additional filters
« Reply #1 on: July 19, 2015, 06:17:18 PM »
None that I know of.

No public records is an interesting criteria that I've used on an off. However, I think some credit models take into account how long ago the public record was to judge the quality of the loan
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

BlueVestment

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Re: Using BluePicks with or without additional filters
« Reply #2 on: July 19, 2015, 06:30:19 PM »
Just with every model - further filtration can greatly affect the total return. We project the returns of the BP models based on the notion that a user will have proper diversification of picks and not just have a few notes. When you begin to further filter the already filtered criteria it technically invalidates the model because it becomes a new model entirely. With that being said, not everyone will agree with me 100% =). That's what I built in the ability for our users to apply additional filter criteria. I myself invest in the BP Aggressive model with one of my accounts without filtering and I believe that Jon does as well.

Nathan

lendbie

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Re: Using BluePicks with or without additional filters
« Reply #3 on: July 21, 2015, 02:29:25 AM »
Thanks for the replies.

lascott: Since you've used "no public records" on and off, have you found that you've had better success with or without it? I'm also wondering about the "number of inquiries in the last 6 months" filter because it seems to be the most statistically significant filter.

Nathan: I've seen some info on Blue Picks here: https://www.bluevestment.com/app/bluepicks, but do you know where I can find even more in depth info on the Blue Picks methodology?

lascott

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Re: Using BluePicks with or without additional filters
« Reply #4 on: July 21, 2015, 02:55:58 PM »
Nathan: I've seen some info on Blue Picks here: https://www.bluevestment.com/app/bluepicks, but do you know where I can find even more in depth info on the Blue Picks methodology?
Jon, also from BlueVestment, indicated in this thread that BluePicks are based on of InterestRadars IR01 credit model. (see 2nd quoted material below).  From the InterestRadar site (going away in future once merge is complete with BlueVestment) you can see this description in 1st quoted material below: https://www.interestradar.com/scores  (doubt you'll get any details on the 16 attributes as credit modelers keep there secret sauce pretty secret from my past experience).
Quote
The IR01 model is based on the performance of loans since Oct 2008. The calculation weights the importance of 16 attributes to predict the risk of default, and the score is then computed separately for each credit grade (A through G).

<clickable link on quoted texted header to get to original post>
<snip>
Yes, I used IR's auto-invest feature.  I also used BV's auto-invest with my own filtering.  As a customer of both services, I always wished I could combine IR's credit models with BV's execution engine (which is wicked fast).  Now that I've joined BV and we've merged with IR, my wish has almost come true.  Starting July 1st, the IR01-driven BluePicks recommendations will be available on BV.
« Last Edit: July 22, 2015, 09:43:37 AM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

lascott

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Re: Using BluePicks with or without additional filters
« Reply #5 on: July 21, 2015, 04:01:42 PM »
lascott: Since you've used "no public records" on and off, have you found that you've had better success with or without it? I'm also wondering about the "number of inquiries in the last 6 months" filter because it seems to be the most statistically significant filter.

I have never worried about the "number of inquires" because tools and their credit models take that into account.  While that is true for "no public records" I'm a little more finicky about trusting those people.  Currently my smaller accounts (kids and wife) are restricting to "no public records" but my account which I'm still trying to get initially invested are just relying on the credit model to handle that.  When I get fully invest I will evaluate if I can keep fully invested and while using "no public records".

My *general* lending philosophy is using an intersection of information. (I have some other preferences but this is the gist).

A -- Lending Club grade (their underwriting)
B -- FICO
C -- Credit models (BV-BluePicks/P2P-Picks; LR-Expected Return; PC-BLE/Risk; LH[LendingHarbor]-ProjectReturn; etc)

D -- Notes I invest in



[update]
Some other public record related info and previous discussion thread.

http://www.nodebtplan.net/2014/02/18/4-types-of-lending-club-loans-i-cant-believe-get-funded/
Quote
Loans with Public Records on File
Another piece of data Lending Club provides is the number of public records on file. This is pulled from the credit report, so donít confuse it with criminal public records. Credit report public records are things like bankruptcy, foreclosure, tax liens, and past-due child support.

Topic: Public Records on File.. do you ever invest in the note?
http://www.lendacademy.com/forum/index.php?topic=540.0
[/update]
« Last Edit: July 22, 2015, 09:41:27 AM by lascott »
Tools I use: (main) BlueVestment: https://www.bluevestment.com/app/pricing + https://www.interestradar.com/ , (others) Lending Robot referral link: https://www.lendingrobot.com/ref/scott473/  & Peercube referral code: DFVA9Y

lendbie

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Re: Using BluePicks with or without additional filters
« Reply #6 on: July 22, 2015, 02:35:25 AM »
Thanks for the detailed info lascott!