AutoInvest - how it works and how to set it up
Bitbond AutoInvest allows you to allocate funds and build a loan portfolio automatically. This saves you a lot of time building your portfolio. You can define your own investment preferences regarding the investment amount, base currencies, rating profile and regions. At the same time, the AutoInvest algorithm follows the quantitative recommendations of the 5 principles of bitcoin lending.
We showcased AutoInvest at FinovateEurope 2015 in London. The video gives you a good overview how to set up AutoInvest and how to make it work for you. For more details on AutoInvest continue reading below!
How to set up AutoInvest
These are the settings to configure AutoInvest. Note that you can change these settings anytime you like. Just remember to click 'Update AutoInvest Profile' so the changes take effect!
Add funds to your AutoInvest account
From this tab you can add your AutoInvest account. You can view this as a sub-account of your primary bitcoin account. You can move funds between your primary account and AutoInvest account anytime you like. Only note that the total of a) available funds in your AutoInvest account and b) your allocated amount (for explanation see below) has to be larger than 0.1 BTC. If this is lower, AutoInvest will stop investing.
This is the on and off switch for AutoInvest. If you want AutoInvest to run, this needs to be set to 'Enable AutoInvest'. When you just disable AutoInvest it will save your settings and you can re-enable it anytime you like.
While AutoInvest is enabled, repayments from investments that were made by AutoInvest are getting invested to new loans.
This field is for information purposes. It shows you how much of your investment amount has already been allocated to loans.
For example: 1.2 BTC of 2.0 BTC means that 1.2 BTC have already been invested in loans. When AutoInvest continues investing, it will allocate a total of 2.0 BTC to loans. The difference between the 2.0 BTC and the 1.2 BTC is the available funds in your AutoInvest account.
If you want to see which loans in particular AutoInvest invested in, go to your Investments. In the investments list below the charts there is a column that says 'Account'. All loans that are indicated with a P (for primary account) account were investments that you did manually. Loans that are indicated with a AI (for for AutoInvest account) were invested by AutoInvest.
Select either the US dollar, EUR or bitcoin or all as base currency for loans to invest in. If you need to know more about base currencies, there is an article entry about Which base currency should I select for the loans I want to invest in?
AutoInvest only invests in loans that are within your rating profile. Each of the three available rating profiles - low risk, medium risk, high risk - contains 3 different ratings. AutoInvest also shows you which ratings are included and displays the average interest rate of loans within that rating profile. You can read more about the rating here.
The regions indicate the country of residence of the borrower. You have to select a minimum of 3 regions and up to all of them. AutoInvest will only invest in loans from the selected regions.
Update AutoInvest profile
This button is quite important because all your changes will only take effect after you click it.
The AutoInvest algorithm
Besides the factors that you defined in your profile, AutoInvest follows the quantitative recommendations from our 5 principles of bitcoin lending. This means, for every bid AutoInvest places, it will
- allocate only up to 4% of your defined investment amount into one single loan
- allocate only up 20% of the requested loan amount into one single loan
- allocate a maximum of 55% of the investment amount into one of the three rating categories in your rating profile (typically the allocation will be more balanced between the 3 rating categories)
- not place bids on loans where you as a user already invested in manually
- not increase bids on loans where AutoInvest already placed a bid on previously