puddleduck
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Post by puddleduck on Oct 24, 2017 13:02:12 GMT
Hi
I've posted a few times about diversification and the odd way that money seems to be allocated vs the 'loans currently open' tab
Could Octopus Choice please explain the following behavior, as it does not reconcile with information posted by the Octupus Rep. here.
On October 23rd, the stats show I have 16 loans parts.
I made a withdrawal of 1250 - the number of loan parts I hold drops to from 16 to 10 after the withdrawal.
The website is at that point showing 13 loans currently open.
I make a payment of 130 to try to get into these loans. The number of loan parts I hold rises from from 10 to 20. Why has money gone into loans I already hold rather than the 13 open loans?
The website is now showing 30 loans currently open.
I make another payment of 100. The number of loan parts I hold increases to from 20 to 21. Why has money gone into loans only increased by 1?
How it is possible that 230 paid in in payments of 130 and 100 when the site shows 30 open loans, and I hold 10 at the start of the day has only purchased 11 parts in total?
How it is possible that when your site shows 30 open loans, and I held 10 at the start of the day, I now only hold 21 today, with 2 payments made in small chunks to try to diversify.
My conclusion is that there are not really 30 'Loans currently open' here? Am I right?
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macq
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Post by macq on Oct 24, 2017 18:21:52 GMT
had the same problem and i think the answer is (and don't quote me) that they add payments to the least funded onwards so if when you add money again that loan or others are still the least funded you get them again.Its a shame that there was not a more manual way at their end to spread payments or the auto setting could pick new loans.
Only OC can tell you but it may be possible you would have got a better spread with only one payment but its to scientific for me.
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puddleduck
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Post by puddleduck on Oct 24, 2017 18:31:03 GMT
had the same problem and i think the answer is (and don't quote me) that they add payments to the least funded onwards so if when you add money again that loan or others are still the least funded you get them again.Its a shame that there was not a more manual way at their end to spread payments or the auto setting could pick new loans. Only OC can tell you but it may be possible you would have got a better spread with only one payment but its to scientific for me. Hi, I thought about a higher payment, but with 13 open loans reported earlier and Octupus Choice saying they allocate 10 to no more than 20 loans at once, a payment of 130 was optimal. I could have put in more but to my mind, that would have been counter-productive. I think it's fair to say I don't think the site works well, and what they do report is actually fairly useless, as you can't do anything with the info - or rather, it doesn't do what you think it will!
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macq
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Post by macq on Oct 24, 2017 18:59:31 GMT
Like i said to scientific for me & guess the word algorithm will come up at some point.Think the only info that they give which i hope is correct is the default rate given on the home page (even if it is not strictly for this product)Could be wrong on this but i believe that the LB account which may be the nearest to OC in style does not even tell you which or how much you have in their loans
Also you may want to keep an eye on repayments as they sometimes go back into the same loans as your already in as well
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Post by davee39 on Oct 24, 2017 20:01:59 GMT
This is explained somewhere in the FAQ. The aim is to diversify, but also the allocation of new funds is initially directed toward the loans with the largest unfilled balance, so £130 is not going to be allocated across 13 loans equally if you already have an existing holding, although it should be if it is your first investment. Additionally the loans are at different rates and there is an attempt to allocate loans to achieve the average rate, which again prevents even allocation.
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pom
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Post by pom on Oct 25, 2017 10:44:16 GMT
To be honest based on this and your comments in another thread I think you're trying to over-manage it and invest too quickly. OC is not a site to use if you want to control your diversity, it's for fire-and-forget and you just have to accept they may not get the perfect ideal-world diversification you desire (but the point is it's very little effort on your part). And drip feeding will only really work if you're patient about it - I think 3 week gaps were my shortest between initial investments just over a year ago, tho I've hardly added any new money this last 6 months or so, yet last time I did top up I think I was up to about 160 loans.
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macq
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Post by macq on Oct 25, 2017 11:20:31 GMT
To be honest based on this and your comments in another thread I think you're trying to over-manage it and invest too quickly. OC is not a site to use if you want to control your diversity, it's for fire-and-forget and you just have to accept they may not get the perfect ideal-world diversification you desire (but the point is it's very little effort on your part). And drip feeding will only really work if you're patient about it - I think 3 week gaps were my shortest between initial investments just over a year ago, tho I've hardly added any new money this last 6 months or so, yet last time I did top up I think I was up to about 160 loans. would agree about gaps in drip feeding as i soon found that paying in every couple of days led to some loans increasing much more then others you need some to close funding or except bigger loan parts.Hopefully as i have found repayments will break the large loans down in time but again if you get 2 repayments close together they may well end up in the same loan or loans
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