Author Topic: LendingRobot failing to place orders  (Read 3026 times)

jps8

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LendingRobot failing to place orders
« on: February 08, 2016, 06:21:30 AM »
I've been using LendingRobot for about 9 months now.  About 5 months ago, I noticed a fairly significant flaw in their system, which I have seen repeated on numerous occasions since then.

Specifically, their rules (filters) sometimes completely fail to place orders for qualifying loans.

For example: My rules are currently setup to buy anything with an Expected Return of 12% or higher. Sunday night, after the 6pm round, I checked my buy history and there were 2 loans purchased. I then checked the Latest Loans page (https://www.lendingrobot.com/#/resources/latest/LC/) and saw that there were 10 loans with an ER of 12% or higher. (See Attachments)

That's right: 10 loans met my criteria and only 2 of them were purchased.

A few things to clarify: My account had more than enough cash on hand to purchase all 10 loans. Also, when I checked the Latest Loans page all 10 loans were still available for purchase. In fact, I went ahead and manually purchased the 8 loans they failed to place orders on.

I've been discussing it with their customer service team since I noticed it (20 weeks ago, according to our chat logs). They've admitted that their engineers are working on the issue, but I have yet to see it be resolved.

Initially, they told me that the issue is caused by loans that "trickle in" after the scheduled feeding time. They claim that this only happens to "<0.25% of notes", but this seems implausible given how many loans they fail to order for me in this last round (80% vs 0.25%).

Also, I was told that: "Lending Club doesn't let us know when notes will trickle though - so it is a guessing game if/when they are sent out.  The danger is that if we query their server too often, LC's servers block us ( DDoS attack reasons).  This means a few of the notes get through our net.  Our calculations show the result is negligible, since most of the notes that slip through are not ones we would invest in, anyway."  This sounds legit on its surface (who wants to be shut down for DDoS reasons?) except that eventually, at some point after feeding time, LR is catching the loans in question. How do we know this? Because they show up on LR's Latest Loans page! Without regard to when they "trickle in", LR is getting these loans and scoring them with an Expected Return. For whatever reason, LR appears to not be executing orders on these loans when this happens. Furthermore, their comment about the results being negligible because they are loans are ones that they wouldn't buy anyways is clearly false on both points.

A few weeks later, when I reported the issue again, they apologized for the issue and assured me that "The tech team is in full resolution mode." I immediately called BS on this comment, because they were in the midst of rolling out support for Funding Circle. How can you be in "full resolution mode" and rolling out support for a new marketplace at the same time?

Most recently, they've been telling me that there is no problem because my Win Rate is 100% (i.e. what percent of orders placed are actually fulfilled). However, this doesn't seem to be an issue of the "win rate"  - it seems to be that they just aren't placing the orders in the first place.

Besides this major issue, there have also been numerous other bugs throughout the past few months (Rounding errors on the ER filters, Protocol issues with Prosper & LC, my Prosper account showing a $0 balance, AUM and Expected Return on Managed Principal fluctuating wildly, rules not responding to edits correctly, etc) but most of these seem to get sorted out within a few days/weeks. I've even been congratulated by their customer service team for catching and reporting a few bugs to them.

Ultimately, the truth remains: LendingRobot is failing to place orders on loans that match my filters and they have not been able to fix this over the last +20 weeks. And since placing orders based on filters is fundamentally what their service is meant to do, I'm not sure why I should stick with them.

Has anyone else had this issue?


giladg

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Re: LendingRobot failing to place orders
« Reply #1 on: February 08, 2016, 02:40:00 PM »
Hi, this is Gilad from LendingRobot. Thanks for bringing this to our attention.
We're analyzing the data for last couple of months; if we determine that loan "trickling" after the scheduled release time has become more prevalent we'll modify our code to deal with that.


lascott

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Re: LendingRobot failing to place orders
« Reply #2 on: February 09, 2016, 04:26:32 PM »
Some of these issues are probably related to roll your own users putting a large number of notes in their "cart" for up to 30 minutes and then manually going through them ... or letting their slower automated rating system process them for as along as it needs to (ie. not worry about subsecond processing times).

I've raised these issues with LR in the past.
« Last Edit: February 09, 2016, 04:29:12 PM 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

mrao

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Re: LendingRobot failing to place orders
« Reply #3 on: March 24, 2016, 09:07:03 PM »
Good to know Lendrobot is still giving free 10K management for referral.
https://www.lendingrobot.com/ref/nuCfa943/

MA4nur

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Re: LendingRobot failing to place orders
« Reply #4 on: July 12, 2016, 08:29:12 PM »
I've had problems with automated buying the secondary market. I have a lot of cash dragging right now  :'(. I set my specifications on Lending Robot and after realizing that no transactions were taking place after a while, I put these same specifications on the Lending Club secondary market site manually. There were about 14 available notes. This has been an issue for the past few days.

Lending Robot has been able to purchase a few notes on the secondary market on my behalf but the times between purchases has been remarkably high and I have plenty of cash just sitting there. I've put an inquiry in, without any response at this time.

I will post any updates. Any others with secondary market issues? 

Update:
I received a response from them with the following message: "please keep in mind LendingRobot only purchases new notes that have just been listed on the secondary market. If the note has been idle after being listed for more than a few minutes we will not purchase it. " This makes sense and am much relieved.
« Last Edit: July 13, 2016, 12:50:39 PM by MA4nur »