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Post by chris on Apr 4, 2014 15:37:43 GMT
It's not as simple as having a queue, and different events have different priority orders. AM sales prioritise those with lower current investment levels in a loan, to try and distribute loan units across all lenders who are interested. Once I have more real world data to test against I'll create a more balanced algorithm that combines distribution with a fairer way of dealing with HNWs who want larger stakes and the length of time people have been waiting in queue. Other events, such as when an auction starts, are based solely on the length of time people have been queueing. Until we see how people use the system it's impossible to guarantee a perfect balance but hopefully you guys trust us to be responsive to imbalances and to find a balance that works for as many people as possible. , if I placed an AI order say two days ago for loan X to buy £200 worth, then changed that today to £300 worth, will that push me back again in the queue & lose me my 'earlier' place, even though it's for the same loan (ie will it be treated as wholly new & different AI instruction)?Not currently but I'm not sure if that is fair or not. If you disable and reenable then that resets the timestamp.
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Post by j on Apr 4, 2014 15:43:55 GMT
chris, if I placed an AI order say two days ago for loan X to buy £200 worth, then changed that today to £300 worth, will that push me back again in the queue & lose me my 'earlier' place, even though it's for the same loan (ie will it be treated as wholly new & different AI instruction)? Not currently but I'm not sure if that is fair or not. If you disable and reenable then that resets the timestamp. Thanks for the reply. I think if it was a different loan then it would be fair but, for the same loan, probably not. If the two figures were wildly different (eg order going up from say $200 to £2000) then maybe the first order can retain its original place & the second for £1800 will be treated as a separate new order & queued as such. I feel somewhat sorry for you with all this, so many connotations & scenarios to deal with, all justifiable & viable. Don't even know if you can program AI to carry all this out?! 
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Post by chris on Apr 4, 2014 16:14:40 GMT
Perhaps a workable solution would be to change the queue order if the target is changed and the mandate has already successfully been enacted to either buy or sell a loan unit. If it hasn't yet had any effect then you retain your queue order.
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Post by yorkshireman on Apr 4, 2014 18:16:09 GMT
@ chris - a few comments that may or may not have already been covered. The thread has got long, and I do not have the time to read it in it's entirety, so I apologise if you are having to reiterate. It appears that Auto-Invest Mandates (AIMs) can be set-up without having the necessary funding to execute them in your account. Firstly, if let's say a user has set-up AIMs to concentrate on the AM, but has insufficient funds in their account to complete the buy requests as or when loan parts come up for sale, do the AIMs get requeued? Secondly, does enabling AIMs to be set-up without having sufficient funding not leave the system open to abuse? For example; I could set-up an AIM for the complete amount of a single loan (or more), knowing that this will stall AM sales and keep me at the front of the queue until such time that I do have the funds that I actually want to invest, and transfer them in. Finally, an observation over and above anything else - AC are currently attempting to accelerate new money being brought onto the platform by offering a cashback deal. Won't introducing AI at this time be counter-productive to that strategy? The majority of lenders will be using AI on the AM, which I understand could free up some cashflow for underwriters and fellow lenders alike, but won't the largest pool of funds just be sitting in people's accounts, uninvested? Think of the AIMs as setting a target for investment in that loan and instructing the system to do what it can, within the existing rules of the platform, to hit that investment target. So they never try something and then switch off, they're constantly being monitored to see if something can be done or adjusted in order to keep the investment level as close to your target level as possible. You can place set up an AIM on a preview loan before bidding or even pre-bidding is allowed, and as and when the time rolls round when the loan opens for investment the system will automatically place pre-bids, bids or shadow bids up to your target level. If the system were unable to place investments up to your target, for example if there were a maximum bid per user set, then once the loan draws down and loan units become available the system will buy them to try and get up to your target level. If you change your mind and adjust your level again the system will do what it can in order to achieve that new total. Using an example of a loan where you have bid but then change your mind, if you adjust your level to zero the system will try and sell all your loan units after the loan is drawn down and the aftermarket opens. So users should be setting their targets on loans at all stages. I would hope this means that all loans, both on the primary and secondary markets, are getting plenty of attention from lenders. The stats show that yesterday activity was pretty evenly split between the two.
Hi Chris.
Could you please clarify how to use AI and in particular the “Max percent of loan” function using the following hypothetical example:
Loan “X” is a completed loan for a total of £100000.
I already hold units to the value of £100 in this loan.
I wish to buy a further £100 of units in the loan therefore I set my Total target investment at £200 i.e. the £100 I already hold plus the £100 I wish to buy and tick the Buy Units box only.
So far, so good, I think! What I’m not sure about is the Max percent of loan. Is this:
A. 0.1% i.e. the £100 I wish to buy, expressed as a percentage of the £100000 loan total.
Or
B. 0.2% i.e. the £100 I wish to buy plus the £100 I already hold = £200 expressed as a percentage of the £100000 loan total.
Please advise.
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Post by chris on Apr 4, 2014 19:50:11 GMT
The "Max % of Loan" setting acts as a cap for the target, it doesn't need to be set if you're happy with the target. It's more for use with another feature that's coming in phase 2, but is offered as an advanced option in case you want to use it.
If you do want to use it then the way it works is to set the cap at that percentage of the current principal total loan amount. If it's a £100k loan and you set the max percentage to 10%, then even if you set the target to £20k the system won't bid more than £10k. If you set the target to be £5k then the system will target £5k as that is lower than the max percentage.
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Post by oldnick on Apr 5, 2014 8:16:46 GMT
chris, if I placed an AI order say two days ago for loan X to buy £200 worth, then changed that today to £300 worth, will that push me back again in the queue & lose me my 'earlier' place, even though it's for the same loan (ie will it be treated as wholly new & different AI instruction)? Not currently but I'm not sure if that is fair or not. If you disable and reenable then that resets the timestamp. So, disabling all AIMs, in order to remove funds which I don't want to reinvest, and then re-enabling it, could lose me my place in the queue? If that's the case, instead of having to disable AI to prevent withdrawn money from being potentially immediately reinvested in the market, how about a quarantined account, that AI can't see, that I can direct the money to?
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Post by chris on Apr 5, 2014 8:19:06 GMT
Yes, that would be the knock on effect.
Multiple cash accounts and being able to direct payments and sales to a different account are coming as part of phase 2.
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Post by oldnick on Apr 5, 2014 8:25:42 GMT
Yes, that would be the knock on effect. Multiple cash accounts and being able to direct payments and sales to a different account are coming as part of phase 2. Gee whiz. It's like having Alladin's magic lamp round here. How many wishes do we each get? 
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Post by Ton ⓉⓞⓃ on Apr 5, 2014 8:59:14 GMT
It's obvious that the time for a Holding Account has come, but several?. I suppose one for the Shadow Land people and another for Pre-bids. On another point, I love how with AI you can now put in a Pre-Pre-bid (in effect). IN EDIT. I keep forgetting where the answers to certain questions are; as some are on different threads. Is it possible all the salient points on AI to be gathered together, I'm probably going to have to do that for myself. But in the next releases Phase I & II can we have them all in one thread. It's not your chris fault I've (and others I think) asked questions in different places, you politely answer them where ever they are. |
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Post by chris on Apr 5, 2014 9:23:46 GMT
Yes, that would be the knock on effect. Multiple cash accounts and being able to direct payments and sales to a different account are coming as part of phase 2. Gee whiz. It's like having Alladin's magic lamp round here. How many wishes do we each get? Well andrewholgate and his team have done a pretty darned good job at making sure we have the best loan offering, it's only fair that I do the same on the technology side 
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Post by chris on Apr 5, 2014 9:26:10 GMT
It's obvious that the time for a Holding Account has come, but several?. I suppose one for the Shadow Land people and another for Pre-bids. Once you allow for more than one there's no reason to artificially limit it except for UX purposes. Some of the other phase 2 updates mean that it makes sense to offer more than one, plus even now some people are having to run multiple user accounts where they invest for both themselves and their company and this facility would enable them to do that using a single login.
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Post by Ton ⓉⓞⓃ on Apr 5, 2014 9:39:11 GMT
It's obvious that the time for a Holding Account has come, but several?. I suppose one for the Shadow Land people and another for Pre-bids. Once you allow for more than one there's no reason to artificially limit it except for UX purposes. Some of the other phase 2 updates mean that it makes sense to offer more than one, plus even now some people are having to run multiple user accounts where they invest for both themselves and their company and this facility would enable them to do that using a single login. Can they invest for their wives as well, When I say wives I don't mean I have more than one wife... What does UX mean again?
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Post by oldnick on Apr 5, 2014 9:42:58 GMT
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Post by chris on Apr 5, 2014 9:43:49 GMT
Once you allow for more than one there's no reason to artificially limit it except for UX purposes. Some of the other phase 2 updates mean that it makes sense to offer more than one, plus even now some people are having to run multiple user accounts where they invest for both themselves and their company and this facility would enable them to do that using a single login. Can they invest for their wives as well, When I say wives I don't mean I have more than one wife... What does UX mean again? I don't know if there would be a compliance issue in terms of ID checks, but presuming that it's okay with the compliance team then you could lend on behalf of however many wives you have (again the system wouldn't limit this) and get individual cleared funds and statements for each. Edit: UX means user experience which is a grandiose term encompassing the way the site looks and how people interact with it.
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Post by Ton ⓉⓞⓃ on Apr 5, 2014 9:50:49 GMT
Can they invest for their wives as well, When I say wives I don't mean I have more than one wife... What does UX mean again? I don't know if there would be a compliance issue in terms of ID checks, but presuming that it's okay with the compliance team then you could lend on behalf of however many wives you have (again the system wouldn't limit this) and get individual cleared funds and statements for each. Edit: UX means user experience which is a grandiose term encompassing the way the site looks and how people interact with it. So glad to know that AI doesn't involve itself with my sex life. Not so happy that the Compliance Team might...
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