Author Topic: I do not get the PeerCube Automated Folio Selling at all  (Read 4424 times)

bdonovan

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I do not get the PeerCube Automated Folio Selling at all
« on: August 18, 2016, 07:46:38 PM »
Lending Robot has a very simple way to sell.  You set filters on Note Selection (ie: grade).  You then specify what the markup/discount would be to the bond value (principal, accrued interest).  Done.  For some reason, I can't figure out how to do this basic thing on PeerCube.  It has the Note Selection part down.  But to sell, I need to pick from 3 strategies, all of which are interesting, but are more involved than simply setting a discount/markup on the bond value.  You can discount/markup from the Average Listed Price and the Lowest Listed Price.  Or you can sell at discount/markup to Total Amount Due (which I figure is total Remaining Payments).  What if you just want to sell at the price of the bond value or a discount/markup related to it??

It seems I can do more sophisticated sales strategies, but not the most basic one.  Help appreciated. 

AnilG

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Re: I do not get the PeerCube Automated Folio Selling at all
« Reply #1 on: August 18, 2016, 09:50:03 PM »
If you are looking for simple pricing strategy for setting the markup/discount off the Total Amount Due, just select pricing strategy 3 and specify your markup/discount. The total amount due is same as outstanding principal + accrued interest.

Other two strategies account for two different scenarios:

Pricing Strategy 1 account for the fact that to realistically sell your note and make them attractive for buyers, you need to price your note lower than other notes available on Folio from same loan. Pricing Strategy 1 will do that for you. You select the strategy 1 and just specify what percentage above/below the lowest sell price listed for other notes from same loan, you are willing to accept. This strategy works for lenders who are motivated to sell. Typically, I have seen this strategy deployed for Late notes.

Pricing Strategy 2 helps price your notes when either no other notes from same loan are listed or you want to list your notes at the average price of notes from similar loans. You select the strategy 2 and just specify what percentage above/below the average sell price listed for other notes from similar loans, you are willing to accept. Typically, I have seen this strategy deployed for Current and Issued notes.

You need to pick at least one pricing strategy. You are free to select more than one pricing strategy. When seller selects multiple pricing strategies, the execution order is Strategy 1, if conditions for Strategy 1 not met then Strategy 2, if conditions for Strategy 1 & 2 not met then Strategy 3.

Have you seen following blog posts related to automated selling?

How to automate Note Selling on Lending Club Secondary Market with PeerCube?
https://www.peercube.com/blog/post/how-to-automate-note-selling-on-lending-club-secondary-market-with-peercube

Enhancements to Automated Note Selling on Lending Club Folio Secondary Market
https://www.peercube.com/blog/post/enhancements-to-automated-note-selling-on-lending-club-folio-secondary-market

Six Steps to Automated Selling on Lending Club Folio Secondary Market
https://www.peercube.com/blog/post/six-steps-to-automated-selling-on-lending-club-folio-secondary-market

Let me know if you need further clarification.

Lending Robot has a very simple way to sell.  You set filters on Note Selection (ie: grade).  You then specify what the markup/discount would be to the bond value (principal, accrued interest).  Done.  For some reason, I can't figure out how to do this basic thing on PeerCube.  It has the Note Selection part down.  But to sell, I need to pick from 3 strategies, all of which are interesting, but are more involved than simply setting a discount/markup on the bond value.  You can discount/markup from the Average Listed Price and the Lowest Listed Price.  Or you can sell at discount/markup to Total Amount Due (which I figure is total Remaining Payments).  What if you just want to sell at the price of the bond value or a discount/markup related to it??

It seems I can do more sophisticated sales strategies, but not the most basic one.  Help appreciated.
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Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com