Is there interest in an AI-driven automated investing that outperforms?

[meagro]

Hi -

I wanted to check here if there's interest in a product that auto-selects and invests in loans on Lending Club based on a machine learning model to predict default probabilities.

I have spent a lot of time building this model and tested it on both historical and live data and found that it is able consistently identify loans whose interest rates are higher than they should be. By testing this model on more than a couple years of data I found that it can generate returns in the range of 8-10% per year, compared to ~6.5% that lending club offers with its automated investing. I have already automated investing in my own portfolio with this model.

I would like to know if you'd be interested in a service that auto invests in selected loans based on this model for a small fee. Apart from this, I also will offer additional features like instantly buying back loans that are current and have less than certain payments left.

[.Ryan.]

Of course automating loan selection and higher returns sound enticing, however there is already an existing number of 3rd party vendors that provide this (NSR, LiquidP2P.....). All claim to have some sort of edge due to Modeling/AI/Machine learning/Analytics/Whatever.

Its hard to evaluate one against the other, as none seem to want to publish their historical returns.

[TravelingPennies]

Yes, I have seen these offerings before and the issue is exactly what you pointed out, the lack of transparency.

I intend to publish historical returns and show 'live' performance of my portfolio that uses this model.

However with the existing offerings, I am not sure if I want to invest the effort to make this into a product. Have you used something similar and have any problems that you would like to address ?