Author Topic: Buy notes on the secondary market with API  (Read 8188 times)

Rob L

  • Hero Member
  • *****
  • Posts: 2124
    • View Profile
Re: Buy notes on the secondary market with API
« Reply #30 on: January 13, 2018, 11:29:42 AM »
That would seem to be the case, but notes are definitely available to buy (if you know the note ID and price) the instant they're posted. I've done back to back sell<->buy API calls between two different accounts to test. Someone is buying the great notes-- current never late notes with strong upward FICO ratings that are discounted 3% or more-- before they ever hit the listings.

1) Do you know if the buy API calls in your back to back scenario suffer the same 30% to 50% failure rate as discussed earlier in this thread? I've been thinking with my tin foil hat on that the buy failures may be purposeful. Back to back sell-buy transactions could permit users to move notes between accounts at arbitrary non-market prices, perhaps greatly discounted. No other buyers even see the notes. However, if half the buys fail then those greatly discounted listed notes become exposed to other market participants and that makes the transfer between accounts at non-market discounted prices unworkable. Of course if one could re-try the buy quickly enough until success or cancel the sell on buy failure (if the expanded API permits this) then the transfer at non-market price could possibly be accomplished. Anyway, real tin foil hat stuff.

2) If you are an LC third party provider or any entity with lots of user accounts / credentials you're probably going to get the listings first. Just set up say 60 individual threads, each to initiate a download once a minute and staggered by one second starting intervals (LC's minimum access interval). If you've gone to that much trouble you will certainly have figured out the LC physical access point with the earliest release time and lowest latency. Each thread extracts newly listed notes and throws them into a single common queue for evaluation and possible purchase. Or something like that ... Doesn't seem very hard to do or even very expensive; you just need lots of accounts to use for the download threads.

Dave101

  • Newbie
  • *
  • Posts: 7
    • View Profile
Re: Buy notes on the secondary market with API
« Reply #31 on: January 14, 2018, 10:56:53 AM »
That would seem to be the case, but notes are definitely available to buy (if you know the note ID and price) the instant they're posted. I've done back to back sell<->buy API calls between two different accounts to test. Someone is buying the great notes-- current never late notes with strong upward FICO ratings that are discounted 3% or more-- before they ever hit the listings.

1) Do you know if the buy API calls in your back to back scenario suffer the same 30% to 50% failure rate as discussed earlier in this thread? I've been thinking with my tin foil hat on that the buy failures may be purposeful. Back to back sell-buy transactions could permit users to move notes between accounts at arbitrary non-market prices, perhaps greatly discounted. No other buyers even see the notes. However, if half the buys fail then those greatly discounted listed notes become exposed to other market participants and that makes the transfer between accounts at non-market discounted prices unworkable. Of course if one could re-try the buy quickly enough until success or cancel the sell on buy failure (if the expanded API permits this) then the transfer at non-market price could possibly be accomplished. Anyway, real tin foil hat stuff.

2) If you are an LC third party provider or any entity with lots of user accounts / credentials you're probably going to get the listings first. Just set up say 60 individual threads, each to initiate a download once a minute and staggered by one second starting intervals (LC's minimum access interval). If you've gone to that much trouble you will certainly have figured out the LC physical access point with the earliest release time and lowest latency. Each thread extracts newly listed notes and throws them into a single common queue for evaluation and possible purchase. Or something like that ... Doesn't seem very hard to do or even very expensive; you just need lots of accounts to use for the download threads.

1) None of the notes I've tested have ended up being bought by others. They've either been canceled for payment processing, or purchased. See Fred's response in the other thread about his research on why this happens so often.

2) I've considered that. Very rarely I'll be able to snag a single note in a batch that was listed at the same time, while the others are snatched up by others. You could be right, and in this case milliseconds matter.

Rob L

  • Hero Member
  • *****
  • Posts: 2124
    • View Profile
Re: Buy notes on the secondary market with API
« Reply #32 on: January 14, 2018, 12:45:15 PM »
That would seem to be the case, but notes are definitely available to buy (if you know the note ID and price) the instant they're posted. I've done back to back sell<->buy API calls between two different accounts to test. Someone is buying the great notes-- current never late notes with strong upward FICO ratings that are discounted 3% or more-- before they ever hit the listings.

1) Do you know if the buy API calls in your back to back scenario suffer the same 30% to 50% failure rate as discussed earlier in this thread? I've been thinking with my tin foil hat on that the buy failures may be purposeful. Back to back sell-buy transactions could permit users to move notes between accounts at arbitrary non-market prices, perhaps greatly discounted. No other buyers even see the notes. However, if half the buys fail then those greatly discounted listed notes become exposed to other market participants and that makes the transfer between accounts at non-market discounted prices unworkable. Of course if one could re-try the buy quickly enough until success or cancel the sell on buy failure (if the expanded API permits this) then the transfer at non-market price could possibly be accomplished. Anyway, real tin foil hat stuff.

2) If you are an LC third party provider or any entity with lots of user accounts / credentials you're probably going to get the listings first. Just set up say 60 individual threads, each to initiate a download once a minute and staggered by one second starting intervals (LC's minimum access interval). If you've gone to that much trouble you will certainly have figured out the LC physical access point with the earliest release time and lowest latency. Each thread extracts newly listed notes and throws them into a single common queue for evaluation and possible purchase. Or something like that ... Doesn't seem very hard to do or even very expensive; you just need lots of accounts to use for the download threads.

1) None of the notes I've tested have ended up being bought by others. They've either been canceled for payment processing, or purchased. See Fred's response in the other thread about his research on why this happens so often.

2) I've considered that. Very rarely I'll be able to snag a single note in a batch that was listed at the same time, while the others are snatched up by others. You could be right, and in this case milliseconds matter.

Yeah, I guess my tin foil hat theory had been shot down.