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Post by spiker on May 5, 2017 21:25:14 GMT
The profit margins made by using these methods are eyewatering and free from tax plus legal. Disagree a little, yes, its possible to improve your averages with a bot, but to make good money you have to take a risk and invest a lot (nothing is risk free...and the markets can turn fast...) And what do you mean 'free from tax?'
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447 
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Post by stub8535 on May 6, 2017 0:46:52 GMT
Risk. Flippers take little risk. Grab all and sell at premium. Majority gets bought. Whats to declare at year end jmun terms of income? 0 tax 0. Capital gain 0 as incentive to trade. Tax 0.
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voss
Member of DD Central
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Post by voss on May 6, 2017 6:59:36 GMT
It's not all rosy. Those flippers will have to pay 0.25% sale fee. And they will have to pay income tax on any interest paid to them. And there is also the site fee.
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Post by spiker on May 6, 2017 7:32:01 GMT
Grab all and sell at premium. Majority gets bought. Speaking from experience you'd be lucky to sell 20% of your loans at premium
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stub8535
Member of DD Central
personal opinions only. Not qualified to advise on investment products.
Posts: 1,447
Likes: 945
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Post by stub8535 on May 6, 2017 8:20:23 GMT
So that explains why the early bot users on the site have migrated. My experiences on platform made me sell my near 6 figure sum and move. Bot gits actions at the time were just one reason for going along with the management twisting poll results in order to change the system and the rapidly mounting bad debt figure with poor recoveries. So glad I got off so lightly. Maybe I need to check back for all the high interest rates availability that abounds the primary market.
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Post by yorkshireman on May 6, 2017 12:25:48 GMT
As I said in another thread, I achieved a return of 11.29% from 01/01/2017 to 28/04/2017 entirely by flipping and without a bot so there’s still money to be made on FC IMO.
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voss
Member of DD Central
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Post by voss on May 6, 2017 13:26:31 GMT
Enviable but does that % take into account uninvested funds? Or is it like Figuring Craftily's % which is based on invested funds only? Would be interesting to know the size of your funds dedicated to this, and also how it was spread across which risk bands. How scalable was it? Apologies if this has been done to death on another thread.
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Post by yorkshireman on May 6, 2017 14:04:20 GMT
Enviable but does that % take into account uninvested funds? Or is it like Figuring Craftily's % which is based on invested funds only? Would be interesting to know the size of your funds dedicated to this, and also how it was spread across which risk bands. How scalable was it? Apologies if this has been done to death on another thread. I buy across all risk bands and keep to simple mathematics when calculating my return. Started with £A in total in Funding Circle on 01/01/2017, no funds added but all interest and sale profits reinvested and FC's charges deducted giving a total of £B on 28/04/2017. Which by any calculation is an increase and a return of 11.29%, no need for fancy formulas or the like. Sorry if that sounds a little brusque but I don’t believe in making things unnecessarily complicated!
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voss
Member of DD Central
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Post by voss on May 6, 2017 15:37:22 GMT
Don't worry. That didn't sound brusque at all, not for a Yorkshireman, anyway! And it's how I do my % as well.
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sl125
Member of DD Central
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Post by sl125 on May 7, 2017 11:42:42 GMT
Risk. Flippers take little risk. Grab all and sell at premium. Majority gets bought. Whats to declare at year end jmun terms of income? 0 tax 0. Capital gain 0 as incentive to trade. Tax 0. A couple of months ago, I was responding to a few posters that claimed that "far too many" loans default before their first or second payment. Now I find other posters claim that a "Grab all and sell at premium" involves little risk. Well, clearly, those two views aren't compatible, since if my strategy is to buy up, say, 20% of a juicy £100K D grade loan... I'm running a very real risk that if I don't manage to offload £20,000 of loans at 0.5% premium (which is all you'll get on the secondary market for a D grade loan of that size) then my potential gain of just £50 (£20k * 0.5% minus the 0.25% selling fee) is offset by the real risk that I may not recover a full £20,000 if that loan goes south before I can reduce my exposure sufficiently. So, it depends what your risk appetite is. As I say, I'm risking a full £20,000 on one single loan in order to make just £50! Now, personally, I'm comfortable with that risk... and there are enough D grade loans coming through that the 50 quids do add up... but I am well aware that this certainly ain't risk free, or even "little" risk! Edited to add a couple of other aspects: 1. in order to have the spare cash available to grab as much as £20k in any one loan, I must have to ensure I've sold enough so that my holding account is flush with cash.... whilst it's sitting in the holding account is is earning zero interest... so I'm taking another risk: opportunity cost of lost interest by not holding that loan for longer. 2. The time involved in either pressing F5 all the time to wait for the loans to be placed on the primary market, and setting up the sell instructions equates to money. As does writing code to automate this, and maintaining that code whenever FC changes some minor aspect of their website. Flipping is not a passive investment, so you have to think of what your hourly labour rate is and take this into account.
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Post by yorkshireman on May 7, 2017 14:50:08 GMT
I’m not claiming that a "Grab all and sell at premium" approach involves little risk as I’ve experienced defaults in the past when my tactic was to hold loans for up to 12 months and, as things have played out, I no longer have any trust in FC’s DD or risk bands consequently I view FC as gambling rather than investing.
These defaults made me change strategy and hold loans for no longer than one payment and in many cases sell before the first payment becomes due which and I don’t want to tempt fate, has so far proved successful therefore it would be interesting to see how many loans have defaulted before first payment over say, the last year.
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Post by spiker on May 9, 2017 18:05:06 GMT
At Funding Circle we want all investors to have the best possible experience when using the platform.
As part of our work to improve site performance we have identified your account as being associated with an IP address from which a significant volume of requests are being made.
This activity is having a detrimental impact on site performance and we request that you reduce this activity to no more than one request per minute with immediate effect. Our priority is for all investors to have the best possible access to the website and where we find that script behaviour is affecting performance we will look to redress this.
If you do not make the necessary adjustments we may have to take further action, including restricting access to your Funding Circle account. As outlined in our Investor T&Cs:
13.5 We may end your membership of Funding Circle at any time if:
(f) you use the Funding Circle platform in any of the following ways:
(i) in any way that causes, or is likely to cause, the platform or access to it to be interrupted or damaged in any way;
If you have any questions regarding this or you do not believe that you should have received this email please get in touch.
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Post by spiker on May 9, 2017 18:06:03 GMT
Personally i don't think 10 loads per minute is having a detrimental affect on the server...
Are they running this server on a Raspberry pi?
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voss
Member of DD Central
Posts: 153
Likes: 84
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Post by voss on May 9, 2017 19:59:07 GMT
Are you saying that you were making 10 requests per minute?
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Post by spiker on May 9, 2017 20:30:18 GMT
Yes approximately, if you want an E loan you have to detect it fast!
Believe me I do IT and 10 requests per minute that's not a lot...
And FC said on their own forum a few weeks ago that the current performance issues were nothing to do with bots...
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