Strategy that is not working

For a while, I had auto invest strategy investing in short-term loans that have length between 1 month and 1 month. Why I would do that? I commented on this before – the short-term loans are cool, however the return is bigger on longer short-term loans :). Most lenders actually significantly under-deliver on the loans that are very short, like 7 days, or 14 days. Today, this actually stopped working and I wonder what has changed. My strategy is not picking any more 1 month loans anymore. I have question pending with Mintos support and will see what they have to say.

For me, it is unfortunate, as I prefer not to invest into loans shorter than 28 days and don’t really want 2+ months either. If you have some workaround let me know!

Mintos Strategy – how to create your strategy

In order to create your own strategy on how to invest in loans on Mintos, you basically have to answer only two questions:

  • What is your investment horizon?
  • What is your risk appetite?

From your answers, the rest will follow. Let’s assume that you can have three choices to answer each of these questions:

  • What is your investment horizon?
    • Short (less than 12 months)
    • Medium (12-24 months)
    • Long (24 months and more)
  • What is your risk appetite?
    • Low – Losing money is not acceptable
    • Medium – I am ok losing some of the money
    • High – I am crazy

In the text below I will assume that rating provided by Mintos for the loan originators is useful and actually correlates with the chance the lender will default. Also, only current EUR loans are being considered, however you can re-apply this to other currency.

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