Auto Invest Update: April 2016

To say that I have learned some things from this Auto Invest experiment is quite the understatement. So far Loanbase is really up to the task. I'm going to have to launch my Bitbond program soon based on these results. Let's look at the results in more detail for April after a profitable March.

Last month I did a loan by loan assessment, which you can see on my March report here. Going forward I will be tracking total ROI (return on investment) or ROIC (return on invested capital).

Let's see how the calendar looks for April:

April LB calendar

What you see is lots of green over my 57 payments due in April. 2 of these payments are loans I selected and not on the program (of which 1 paid and 1 didn't). Of the remaining 55 payments due 51 of them have paid for a repayment rate of 92.7%. So I batted 50% on a small sample of 2 for repayment and LB batted 92.7%. This is amazing. Remember that the yellow is paid but paid late and the green is paid on time. I cannot believe that I have this kind of repayment rate from my AutoInvest selections for 2 months in row.

Astonished is more like it....

My March return of 61.56% was not expected to last and it didn't but I am still very much profiting from my AutoInvest experiment.

I started my LB experiment with only 0.35 BTC. My AutoInvest balance now is 0.92 BTC meaning my ROIC is

(0.92-0.35)/ 0.35 162.86%

This is obviously a fantastic and not sustainable return, however it did make the choice easy of adding more to my plan, which I did today. Now my 0.35 BTC principal is a full 1 BTC. Let's see if the returns continue.

Even if I add the 1 BTC I have on Jam doing nothing since I can no longer invest there (yes I have been lazy with moving my coin from there) I still have a return that looks like this (with numerator the same as above just in shorthand of my 1.92-1.35

0.57/1.35 42.22%

Loanbase is really changing my mindset on this program and I added more and will start my Bitbond program soon.

I know this cannot be maintained over time so I will enjoy it while we have it and hope that the credit grading continues to be strong or even improve over time at Loanbase.

I was on the fence about Auto Invest thinking it was just a ploy (not a scam just a ploy) to get and keep funds invested into platform loans. I was on the fence and now I'm starting to become a believer.

About the author

Stu

Stu Lustman, the author of this post, is a Credit Analyst by trade trying to bring Commercial Credit Analysis techniques to the world of Peer to Peer Lending.

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5 thoughts on “Auto Invest Update: April 2016

  1. It will be interesting to see how it works out for you. I started a “cautious” plan in January. First two months were looking good (far less than 162%, but still positive with just one or two missed payments.) Next month, it went downhill and I’m at -27% projected profit right now

    • Thanks for your sharing your performance, Martin. I certainly don’t expect what I’ve earned so far to continue but we can hope.

      • Bellissimo post.I miei sono ancora piccoli ma già Maria si cimenta con i libri delle fiabe classiche. Mucca Mocca ci piace un sacco. Io non vedo l'ora che abbiano l'età per i pop-up. Ne ho visto uno di guerre st.r.alil..e.

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