I am fairly new to P2P investing, I have read the forum and various blogs (Lend Academy and LendingMemo) extensively.
This tool seemed to be one of the best for using a no-fee propriety credit algorithm. However, I have a few questions about how to best use the tool.
1. How old is the historical note data? When I compare it to NSR, the note counts seem to be materially different.
2. How should I interpret the model score? Is it a percentile or a % chance to default over the time to maturity? Or just a score without units?
3. Any filter advice? I am looking for an aggressive type strategy (fairly risk tolerant). I was considering C-G grades with 0 6 month inquires, 3+ years employment, and a clean collections/public records.
4. I am a little concerned with cash drag, I am only deploying 5k (until I have a better feel), however it appears this will take a little while to deploy $25 at a time. Any advice? I have read, that I have to diversify atleast 200 notes to take significant risk out.
5. Any documentation that I am missing? Overall, it looks like the model is not really still under active development?
I appreciate your assistance, it looks like there is a good community around P2P lending here. I have enjoyed reading through many of the posts.
I guess no one uses this anymore? Any better ideas? I have been using it and it appears to work well.
I'm considering using PLS myself. Thanks for sharing your recent discoveries. I think I'll still give it a try. I noticed their "Free" advertisement, but what fees have you come across that will be required for continued use? Thanks for your time Shawn.