Post by acky on Sept 8, 2016 8:54:58 GMT
I recently decided to experiment with Autobid , having studiously avoided it until now for all the reasons that most on this forum will understand. Don't worry, it's only a small part of my portfolio and I don't intend to hold the loans more than a few months, so I haven't totally lost the plot! I set my SM Rate% limits to the maximum to ensure that it will only buy on the PM (don't want soiled SM parts, thank you!). And I excluded A+ loans on the PM. I have been surprised how ineffective Autobid has been in building up a portfolio. I check the market several times a day, and basically I have been manually bidding on all SME loans other than A+ where Autobid has failed to bag me a piece. Admittedly I may therefore have got there before Autobid could bid for me in a few cases, but Autobid fills to 50% so quickly on all loans that there won't be many where that's the case.
So over the 5 or 6 week period that I've examined, there have been 329 loans accepted on the Retail PM that meet my criteria (i.e. not A+). Autobid bagged only 32 of those (a paltry 10%). For C, D and E, it got only 4 out of 103. Presumably this indicates that there's far more Autobid money out there than there are loans to fill. Clearly an Autobid portfolio is therefore going to be very heavily weighted towards A+ and A loans, while I am convinced that (with proper management) net returns are better on the higher risk categories. In detail, Autobid's hit rate for me has been - A: 15%; B: 9%; C: 3%; D: 8%; E: 0% (of course!). By my manual bidding, I have achieved an overall 69% hit rate, comprising A: 88%; B: 76%; C: 54%; D: 12%; E: 0%, which of course indicates how much quicker the high risk/high return loans get filled.
So to steal an expression from the "I haven't Seen Star Wars" radio programme - "Using Autobid": "I'd give it 1 out of 10". Same as it's given me!
