michaelc
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Post by michaelc on Dec 20, 2018 22:41:51 GMT
Probably a stupid question but if currently the interest as well as the capital is being returned by PF, isn't the best strategy to always go for the higher interest loans (e.g. 12-15%) ?
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Post by Ace on Dec 21, 2018 0:35:46 GMT
Probably a stupid question but if currently the interest as well as the capital is being returned by PF, isn't the best strategy to always go for the higher interest loans (e.g. 12-15%) ? Yes, except that a larger range would have lower cash drag. I recently created 3 new investments to experiment: £500 @ 11 - 15% was fully invested inside 3 days. £500 @ 12 - 15% is 60% invested after 7 days. £1000 @ 13 - 15% is 15% invested after 7 days.
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benaj
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Post by benaj on Dec 21, 2018 8:30:52 GMT
Yes, except that a larger range would have lower cash drag. I recently created 3 new investments to experiment: £500 @ 11 - 15% was fully invested inside 3 days. £500 @ 12 - 15% is 60% invested after 7 days. £1000 @ 13 - 15% is 15% invested after 7 days. This makes sense, but this is not what I observe in my account. The matching algorithm matches loan in a way I couldn't understand. I haven't seen any consistency in my accounts and there is usually some cash (5-15%) queuing because of repayment / PF purchase / new added money / stuck in the lending queue.
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dh1
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Post by dh1 on Dec 21, 2018 14:44:50 GMT
It's not by any means a stupid question, michaelc - quite the opposite!
My "magic" formula to get finds invested quickly and in my experience, the whole lot goes within 12 hours or so is: 10% to 15% spread; maximum investment size £100; Auto-Diversify 10% (ie the minimum); 7 day provision fund. That gives my "Invest" "Event History" graph as green and blue lines matching pretty much. Believe it or not, that's with a nearly £200 PF early this morning and a good few others besides. You can guess what will happen with the compulsory quadrupling of the PF time in January.
The discussion in this thread and elsewhere emphasises the black box nature of Welendus investment.
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Post by Ace on Dec 28, 2018 20:10:10 GMT
Probably a stupid question but if currently the interest as well as the capital is being returned by PF, isn't the best strategy to always go for the higher interest loans (e.g. 12-15%) ? Yes, except that a larger range would have lower cash drag. I recently created 3 new investments to experiment: £500 @ 11 - 15% was fully invested inside 3 days. £500 @ 12 - 15% is 60% invested after 7 days. £1000 @ 13 - 15% is 15% invested after 7 days. A follow-up for the sake of completeness now that my whole fund is fully invested (apart from a few pence) : £500 @ 11 - 15% was fully invested inside 3 days. £500 @ 12 - 15% was fully invested after 10 days. £1000 @ 13 - 15% was fully invested after 14 days.
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zlb
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Post by zlb on Dec 29, 2018 11:16:22 GMT
Wonder whether the extensive simulation testing (referred to elsewhere) included everyone seeking 15% loans. nsiam appreciate comment on this. Thanks.
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Post by Ace on Dec 29, 2018 14:15:13 GMT
Wonder whether the extensive simulation testing (referred to elsewhere) included everyone seeking 15% loans. nsiam appreciate comment on this. Thanks. While this is possible in theory, it will never happen in practice since most will either widen their lending criteria or withdraw funds to avoid the cash drag.
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Post by df on Dec 29, 2018 22:45:52 GMT
Wonder whether the extensive simulation testing (referred to elsewhere) included everyone seeking 15% loans. nsiam appreciate comment on this. Thanks. While this is possible in theory, it will never happen in practice since most will either widen their lending criteria or withdraw funds to avoid the cash drag. When I deposit new money I set the rate @10-15% - get fully invested within 1 day with an average 12.5%. 15% is very rare. For reinvestments I keep it @14-15% to avoid very small investments that often deliver no return. When it gets to £10 queued I widen the gap (11.5-15%) and it gets invested imminently, sometimes within seconds. Not sure if it is a good strategy, but I had no cash drag for a long time.
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michaelc
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Post by michaelc on Dec 31, 2018 19:31:34 GMT
While this is possible in theory, it will never happen in practice since most will either widen their lending criteria or withdraw funds to avoid the cash drag. When I deposit new money I set the rate @10-15% - get fully invested within 1 day with an average 12.5%. 15% is very rare. For reinvestments I keep it @14-15% to avoid very small investments that often deliver no return. When it gets to £10 queued I widen the gap (11.5-15%) and it gets invested imminently, sometimes within seconds. Not sure if it is a good strategy, but I had no cash drag for a long time. Would you mind sharing how you calculate your 12.5 % ?
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Post by df on Dec 31, 2018 21:21:57 GMT
When I deposit new money I set the rate @10-15% - get fully invested within 1 day with an average 12.5%. 15% is very rare. For reinvestments I keep it @14-15% to avoid very small investments that often deliver no return. When it gets to £10 queued I widen the gap (11.5-15%) and it gets invested imminently, sometimes within seconds. Not sure if it is a good strategy, but I had no cash drag for a long time. Would you mind sharing how you calculate your 12.5 % ? I've recorded an average per investment 5 times and then calculated an average from all results. It's a small sample, but gives me some idea of what to expect.
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