P2P lending portfolio review for July, 2017

Month overview

Unlike my Collective2 portfolio, my P2P lending portfolio’s life was rather uneventful this month (and I don’t complain about it 🙂 ).

I added some more funds to Omaraha and I’m nearly reaching my target portfolio size. I still have to decrease ViaInvest size, but I’m waiting for the principal to be reimbursed.

Current performance

Omaraha

XIRR at the end of July was 27.6%. Details by country are : Estonia 27.5%, Slovakia 30.7%, Finland 34.9% (very new and small).

I’m starting to see more defaults, but currently their rate (0.7%) mirrors the overall default rate for comparable loans.

I’m still planning to increase my portfolio size a bit, although I have troubles investing it all with a relatively small loan size (20€). I also probably should spend some time studying my statistics by country more closely (XIRR versus default rate) in order to have a better allocation between Estonia and Slovakia. Unfortunately Omaraha doesn’t provide the statistics as CSV files, so it will be a painful task !

Bondora

XIRR for Bondora‘s portolio was 18.07%. I invested a lot in poorly-rated loans with high interest and of course many defaulted, so I’m curious to see what the recovery rates will be like.

I may start playing with the “Portfolio pro” feature in order to increase my returns.

Grupeer

Grupeer doesn’t provide a XIRR computation but all my loans offer 13% or 14% interest rates.

Mintos

XIRR for Mintos was 12.18% for secured loans in Euro and 16.76% for Lari (Georgia). Unfortunately for now, the poor exchange rate totally negates this XIRR difference.

Swaper

XIRR of my Swaper portfolio was 11.84%. I’d love to increase my portfolio size a bit, but until recently this P2P lending site had troubles investing the whole amount, so I’m not totally sure about this.

ViaInvest

XIRR reached 12.74%, which is surprisingly high. However, it looks like all new loans only offer a 10% interest rate. I may thus decrease my portfolio size even more and split this money between Grupeer and Swaper.

Twino

XIRR is 10.23%; I’m in the process of moving all my funds out of Twino as the low returns doesn’t justify keeping an account there.

Current allocation

I’m probably over-invested in Omaraha, but paradoxically I’m still planning to increase its portfolio size a bit.

Once I reach my target size, my Grupeer portfolio should be my next target for growth.

Current allocation between P2P lending websites

New platforms

I’m always looking for new opportunities to diversify my portfolio.

After some due diligence, I may invest a starting amount in Monestro. Loans volume is low and the usability is, let’s say, perfectible, but it seems promising.

 

 

Collective2 portfolio review for July, 2017

Performance

July was a bit complicated for my Collective2 portfolio, as I switched from trading mostly equities and ETFs to futures and forex; this change was aimed at giving me more leverage.

I tried out several strategies, one of which caused a large loss and put me deeply in the red.

Indeed, I started trading PureTrend Mazout and ended up with a huge loss. I only kept my position for 2 days before giving up… and I’m glad I took my loss early ! In fact, this strategy seemingly has no risk control and actually ended up losing 84% of its value (!) in July. It started with $10k last November, then nearly grew it to an extra-impressive $50k… and is now below $10k.

After switching to better managed strategies, I had steady gains daily, allowing me to finish the month with a gain around 7.5%. This figure includes broker commissions but not Collective2 fees. I’ll try to track these more closely in August !

The impressive fact – unfortunately hidden by my large loss – is that in the last 6 trading days of July, I grew my portfolio by 28%!

Renewed subscriptions

I was already trading the following two future strategies, and I renewed my subscription.

Simplicity Trading

Probably my favorite strategy right now; I’ll probably end up writing a detailed review. Performance for June was 11%, according to Collective2.

TradeXpert CrudeOil

This strategy gained only 1.4% in July. There have been a couple of bad trading days which impacted the performance badly. The positive thing is that the trade leader communicated a lot about these troubles, so I’m still giving it the benefit of the doubt.

New subscriptions

Future strategies

E MINI YM TRENDSIGNALS

This low-frequency, systematic strategy trades Dow Futures, mostly on the long side. Historical performance is impressive (330% in less than one year !) and gains are rather regular. Model size is above $50k but it’s easy to scale down. It seems to be similar to Simplicity Trading.

Asset classFutures
TimeframeSwing (less than 1 week)
ManagementSystematic
SideLong/Short
Portfolio size$50k – $100k
Fees$198

OPN W888

This discrete strategy enters day-trades and swing trades on commodity futures. It takes up to 5 positions a day, with well-defined stop losses and profit taking levels. The model size is around $100k, but again it’s easy to scale it down. Performance is great as it nearly doubled the account size with a moderate drawdown.

Asset classFutures
TimeframeIntraday/Swing
ManagementDiscrete
SideLong/Short
Portfolio size$50k – $100k
Fees$88

Maxima

This is another short-term strategy, but with a much shorter history.It started with $25k, and trading is 100% discrete. Performance is impressive but I’m a bit concerned about risk management.

Asset classFutures
TimeframeIntraday/Swing
ManagementDiscrete
SideLong/Short
Portfolio size$25k – $50k
Fees$98

Forex strategies

ArtInvest PxV

This is a new discrete strategy, started with $5k in June. When I subscribed to it, performance was already around 30%. Risk management is excellent, just like for OPN W888.

Asset classForex
TimeframeSwing (less than 1 week)
ManagementDiscrete
SideLong/Short
Portfolio size< $25k
Fees$49

QuantFXOpen

A free systematic strategy, which seems to manage risk rather well. It’s up 50% from April, when it was created.

Asset classForex
TimeframeSwing (less than 1 week)
ManagementSystematic
SideLong/Short
Portfolio size< $25k
FeesFree

 

July P2P lending news

This monthly column will try to sum up the important news related to P2P lending, mostly regarding companies I use for investing.

Usually my primary source of information is the company’s blog or newsletter. This monthly post aims at being a quick read, so I’ll provide a link and a relevant excerpt.

Bondora is profitable

“We are proud to announce that we have reached profitability in the first half of 2017 with the net profit of €300 000. ”

Omaraha caps Estonian loan’s max interest rate

“Estonian loans maximum total interest is now 35%, please make changes to your investment terms. Higher % investment terms wont invest.”

Bondora introduces “Portfolio pro” feature

“Simply put, it is a tool for people who like to have more control over the level of diversification in their investments. You can now use this Pro feature to create a portfolio according to your own rules. For example, you may choose to select loans from specific countries, with different duration and Bondora risk ratings.”

Note for self : review this for a future post !

Bondora (again !) removes fees for direct sell

“Just over a two months ago we released our Direct Sell feature, allowing investors to sell loans directly to other investors from their Investments page. (…) Previously there was a fee associated with all Direct Sell. By removing this cost to investors we’re making it easier than ever to explore the full range of options when investing on Bondora.”

Twino enhances auto-invest usability

“If you are using Portfolio Builder, then on the right side of the page you will see the following information: 1) Available Cash, 2) How many loans match your criteria, 3) How much funds can be invested immediately.

However, if you are creating an Auto-invest portfolio, then on the right side of the page you will see your available cash and two completely new fields: 1) Available Cash, 2) Listed in last 30 days – this value will display how many loans with similar criteria have been listed during the last 30 days, 3) Competing portfolios – this value will display how many Auto-invests with similar criteria have been created by other investors.” (Twino newsletter)

New originator for Twino

“Kazakhstan’s loan originator has joined TWINO investment platform.” (Twino newsletter)