Title: LC vs Prosper
Post by: OptionsTraderFL on January 26, 2014, 11:00:00 PM
Post by: OptionsTraderFL on January 26, 2014, 11:00:00 PM
Which one is better? For buy/originate & hold? For buy & sell?
Title: LC vs Prosper
Post by: Randawl on January 26, 2014, 11:00:00 PM
Post by: Randawl on January 26, 2014, 11:00:00 PM
LC. Debatable tie. LC.
Title: LC vs Prosper
Post by: cnmor54 on January 26, 2014, 11:00:00 PM
Post by: cnmor54 on January 26, 2014, 11:00:00 PM
I joined both in May of 2013. I am in the process of liquidating my Prosper account. My LC account is constantly growing.
Title: LC vs Prosper
Post by: Fred on January 27, 2014, 11:00:00 PM
Post by: Fred on January 27, 2014, 11:00:00 PM
Title: LC vs Prosper
Post by: Bohb Daishi on January 27, 2014, 11:00:00 PM
Post by: Bohb Daishi on January 27, 2014, 11:00:00 PM
Hands down, the secondary market on LC is vastly superior to Prosper.
Title: LC vs Prosper
Post by: Ninja_Sharks on May 16, 2016, 11:00:00 PM
Post by: Ninja_Sharks on May 16, 2016, 11:00:00 PM
After two years, would your statements hold true now from your experience back then. Just curious as change is constant.
Title: LC vs Prosper
Post by: RomanLegend on July 15, 2017, 11:00:00 PM
Post by: RomanLegend on July 15, 2017, 11:00:00 PM
Over 3 years I have had a NAR of 8.6% to 10.5% (never lower never higher). My defaults are less than 3% (2.8 as of right now). Please check out my YouTube video and please give my LC Investment strategy a try. It is free for now in Beta! 
YouTube Intro: https://youtu.be/dIE5bVgj8eE
Register Here for FREE: LCPicks.com
Let me know if you have any questions along the way just send me a message and I'll help out.
Thanks,
-Chris
YouTube Intro: https://youtu.be/dIE5bVgj8eE
Register Here for FREE: LCPicks.com
Let me know if you have any questions along the way just send me a message and I'll help out.
Thanks,
-Chris
Title: LC vs Prosper
Post by: Fred93 on July 16, 2017, 11:00:00 PM
Post by: Fred93 on July 16, 2017, 11:00:00 PM
Title: LC vs Prosper
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Understood. It's not even advertising, we're just giving it away. Its hard to find people with good LC knowledge to test this out. That's all I'm looking for.
from: Fred93 on July 17, 2017, 12:03:29 AM
from: Fred93 on July 17, 2017, 12:03:29 AM
Title: LC vs Prosper
Post by: rawraw on July 16, 2017, 11:00:00 PM
Post by: rawraw on July 16, 2017, 11:00:00 PM
I was going to check it out. But the more you post, the more similar you seem to a Nigerian prince. There are some characteristics of internet marketing you want to avoid when dealing with people's finances.
Title: LC vs Prosper
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Hahaha, that is actually pretty funny. I actually agree with you. You're right.
I'd agree with you even more if we were charging money, but we're not. It is relatively easy to get people who are newer to Lending Club to try your software but their feedback is less helpful. Just because they are still learning overall. It is REALLY hard getting people who are affluent to LC to test something. That is all I am really looking for here...
Also, I wish I was a Nigerian Prince... But I'm not. Just a dude in San Diego.
from: rawraw on July 17, 2017, 11:57:34 AM
I'd agree with you even more if we were charging money, but we're not. It is relatively easy to get people who are newer to Lending Club to try your software but their feedback is less helpful. Just because they are still learning overall. It is REALLY hard getting people who are affluent to LC to test something. That is all I am really looking for here...
Also, I wish I was a Nigerian Prince... But I'm not. Just a dude in San Diego.
from: rawraw on July 17, 2017, 11:57:34 AM
Title: LC vs Prosper
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Title: LC vs Prosper
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
I suppose... I'm not well versed in that art, but sure. This is just a ranking software that has worked well for me, personally. The next step for LC Picks, if any, is to have an app on the app store. Like any other app. At some point we would charge for services but we are not there, not yet.
The only thing that folks on this forum can really help me out with is to view the ranked loans and tell me, with your trained eye, if you agree with the loans we are sifting out. If you do, that is good news for me. If you do not, then I need to dig into that a bit.
-Chris
from: rawraw on July 17, 2017, 12:59:47 PM
The only thing that folks on this forum can really help me out with is to view the ranked loans and tell me, with your trained eye, if you agree with the loans we are sifting out. If you do, that is good news for me. If you do not, then I need to dig into that a bit.
-Chris
from: rawraw on July 17, 2017, 12:59:47 PM
Title: LC vs Prosper
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Have you considered purchasing a subscription to your competitor services (peer cube, lending robot, etc) to see how you are similar and different? My current belief is that the pricing in LendingClub has gotten much better and leaves much less room for beating the market. Returns won't convince me of this but an analysis proving my hypothesis incorrect would convince me.
Sent from my SAMSUNG-SM-G935A using Tapatalk
Sent from my SAMSUNG-SM-G935A using Tapatalk
Title: LC vs Prosper
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
Post by: TravelingPennies on July 16, 2017, 11:00:00 PM
I have looked into the competitors a bit. Something I will do more of. I think the main difference is that I'm just more conservative. I've focused on not letting the bottom fallout vs trying to get the highest interest rate.
Time is what I'm trying to take advantage of. If my money works and makes some interest rate a loss undoes that time my money was working. I started out saying, "ok, whatever I make, I want to keep, however little." When I started getting a respectable interest rate while keeping the defaults low I thought I might be on to something. I'm not necessarily trying to beat the market but if I do I'll certainly take it. My 8.6% interest rate is good, but not glamorous by any means.
What do you have in mind as far as a test that would prove your hypothesis incorrect? If you give me something I may be able to take a look at it.
Time is what I'm trying to take advantage of. If my money works and makes some interest rate a loss undoes that time my money was working. I started out saying, "ok, whatever I make, I want to keep, however little." When I started getting a respectable interest rate while keeping the defaults low I thought I might be on to something. I'm not necessarily trying to beat the market but if I do I'll certainly take it. My 8.6% interest rate is good, but not glamorous by any means.
What do you have in mind as far as a test that would prove your hypothesis incorrect? If you give me something I may be able to take a look at it.
Title: LC vs Prosper
Post by: rawraw on July 16, 2017, 11:00:00 PM
Post by: rawraw on July 16, 2017, 11:00:00 PM
Title: LC vs Prosper
Post by: RomanLegend on July 16, 2017, 11:00:00 PM
Post by: RomanLegend on July 16, 2017, 11:00:00 PM
Yea loss minimization first, maximizing interest rate thereafter. Price point for the app would be very low. I'm thinking <$35 annually or pay as you go for picks. They would have really inexpensive packages of 'x' amount of picks to purchase. Or some variation of that model.
We did do back testing with a good volume of loans. I personally don't mind sharing but let me double check and get back with you. The short story is the back testing did revise my approach a bit. It really eliminated using loans from A1 to B3 based on the results. This handicaps my ability to offset approaching charge offs but also reduces a large portion of the early pay off notes as well. Delicate opportunity costing...
-Chris
from: rawraw on July 17, 2017, 04:30:37 PM
We did do back testing with a good volume of loans. I personally don't mind sharing but let me double check and get back with you. The short story is the back testing did revise my approach a bit. It really eliminated using loans from A1 to B3 based on the results. This handicaps my ability to offset approaching charge offs but also reduces a large portion of the early pay off notes as well. Delicate opportunity costing...
-Chris
from: rawraw on July 17, 2017, 04:30:37 PM
Title: LC vs Prosper
Post by: Peter on July 16, 2017, 11:00:00 PM
Post by: Peter on July 16, 2017, 11:00:00 PM
Title: LC vs Prosper
Post by: Rob L on July 16, 2017, 11:00:00 PM
Post by: Rob L on July 16, 2017, 11:00:00 PM
Generic methylphenidate is covered by most Medicare and insurance plans, but some pharmacy coupons or cash prices may be lower.
The lowest GoodRx price for the most common version of methylphenidate is around $25.74, 70% off the average retail price of $87.80.
Meanwhile if you want to invest with LC, really, just download the big file, use "R" to run a logit regression, and go with it.
There are plenty of secret sauce clues in prior posts by others (one in particular) that suggest the best independent variables of value.
Otherwise find your own.
The lowest GoodRx price for the most common version of methylphenidate is around $25.74, 70% off the average retail price of $87.80.
Meanwhile if you want to invest with LC, really, just download the big file, use "R" to run a logit regression, and go with it.
There are plenty of secret sauce clues in prior posts by others (one in particular) that suggest the best independent variables of value.
Otherwise find your own.
Title: LC vs Prosper
Post by: AnilG on July 17, 2017, 11:00:00 PM
Post by: AnilG on July 17, 2017, 11:00:00 PM
+1 I can't upvote this enough, the most sensible advise I ever read on LA forum.
If you are using more than 4-6 important variables to select loans you are doing it wrong. Also, please stop backtesting credit variables for returns directly and trying to squeeze out 0.1% extra return in your backtesting. Model risk (not return) with credit variables. There is a reason risk-adjusted return term exist and not return-adjusted-risk or return irrespective of risk terms. Also evaluate whether the extra return in backtesting is statistically significant or not.
from: Rob L on July 17, 2017, 08:27:40 PM
If you are using more than 4-6 important variables to select loans you are doing it wrong. Also, please stop backtesting credit variables for returns directly and trying to squeeze out 0.1% extra return in your backtesting. Model risk (not return) with credit variables. There is a reason risk-adjusted return term exist and not return-adjusted-risk or return irrespective of risk terms. Also evaluate whether the extra return in backtesting is statistically significant or not.
from: Rob L on July 17, 2017, 08:27:40 PM
Title: LC vs Prosper
Post by: TravelingPennies on July 17, 2017, 11:00:00 PM
Post by: TravelingPennies on July 17, 2017, 11:00:00 PM
Hahaha, this from the guy with the tag line "A little nonsense now and then is relished by the wisest men" ......curmudgeon.
from: nonattender on July 17, 2017, 07:51:23 PM
from: nonattender on July 17, 2017, 07:51:23 PM
Title: LC vs Prosper
Post by: TravelingPennies on July 17, 2017, 11:00:00 PM
Post by: TravelingPennies on July 17, 2017, 11:00:00 PM
Title: LC vs Prosper
Post by: TravelingPennies on July 17, 2017, 11:00:00 PM
Post by: TravelingPennies on July 17, 2017, 11:00:00 PM
haha