Gaming the new Zopa
Posted 18 September 2012 - 11:53
Now that the new Zopa has tightened the range of rates that match in a market, effectively ruling out snowballing as a valid exercise for the moment, I got to thinking how else I could maximise matching speed.
Round robin matching means that initial queue position is no longer a valuable asset, so it becomes much more easier to add and remove offers from a market without being penalised.
With the current A* shorter market being effectively spanned by offers at 6.4% (it's not possible to tell how much further beyond the £20000 mark 6.4 extends), it must be possible to seed multiple offers into the round robin list at the same rate, keeping them far enough apart (by time of last match) to limit the risk of over-exposure through double matching. The wider the span of the 6.4 rate, and the higher your tolerance to double matching, the more offers you could seed into that market, doubling, trebling etc. your matching speed.
Of course, this would require some micro management via the Market Data report to ensure your offers weren't closing in on each other, but if they are you can use the principle of Formula 1 pits stops; pit stop one of your offers out of the market, and feed it back in in a suitable "gap".
Thoughts on the theory appreciated, and apologies if it's already been posted/discussed in one of the many threads I've not caught up with.
Posted 18 September 2012 - 12:33
... so no matter how many offers you have in the 6.4% queue you're definitely not going to be included in the very next loan to be matched.
Also, I'd tend to think that most lenders don't have enough funds to keep even a single offer with £10 exposure permanently funded at within-ZOPA rates. Such offers which periodically run out of funds will "always" end up back at the front of the queue when they're next funded (whether by topping up or by a loan application to which they're matched being declined).
However, someone HAS to do a visualisation of the MarketQuoteReport that depicts the lending queue as a racetrack and highlights your own offers as "cars" on that racetrack! Maybe some kind of smartphone app that lets you edit offers using some kind of virtual racing game? Not sure what it would need to do about the non-visible portions of the racetrack though? ... or how it would discover exactly how long the racetrack is - are we looking just at the start-finish straight, or all but a few hundred metres of it?
Posted 18 September 2012 - 13:55
1) Any offer is on 2 markets (24&36 or 48&60) and positions and speed of rotation vary so while a few offers might be someway apart in both, managing several would be likely to keep putting one or other close to another offer.
2) If the quotes are coming thick and fast, many offers may be depleted or if the market moves, a significant number of offers may change rate bringing offers closer together, so you really have to be prepared to match most of the offers at a given rate with a single lender of write off a lot of time refreshing the data each hour to compensate.
I would say that I am going to split offers of >£10 per borrower into seperate offers to maximise the number of loans matched.
PS: I think sl75's point re keeping offers funded may be true for many lenders if teh front of the queue matches at a small loan rate, but where this is say £5k the point is much more relevant as it would be if trying to match a large amount of funds quickly (eg if the rates were to increase significantly again).
However, as always this is merely how to get 0.1% more for a lot of work!
Edited by propman, 18 September 2012 - 13:59.
Posted 18 September 2012 - 16:22
Posted 18 September 2012 - 16:29
If I have one offer to all markets at different rates for each market, then I am matched with, currently, a Y36, does that mean that my offer in A* also goes to the back of the queue?
Apologies if I have not understood all that I have read.
Posted 18 September 2012 - 16:32
Posted 18 September 2012 - 17:09
Posted 18 September 2012 - 21:48
Of course, that might not bother some people. And I can speak from experience that having a large loan book does mean that it's very time-consuming to try to keep aware of what's happening with all of my 'non-performing' loans. But I'm not sure it's making much difference to my ability to analyse my account. That's done with a computer and, aside from the need for a few extra seconds of recalculation time and a bit more hard disk space to store the data, the size of the data base has little impact -- for me anyway.
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