Example of Compass Investors Profile in Action
During the period June 28, 2002 and July 1, 2003, IBM stock went up 17.2% (from $71.35 to $83.59). Not bad, but not great either. The seven Compass Investors Profile buy and sell signals issued for IBM during that same time period (Scenario 1 below) resulted in a 47.4% profit - an improvement of more than 150%. Furthermore, if instead of just selling IBM stock when a sell signal was issued, you sold the stock short (a way to profit when a stock is declining in price), the profits were 75.8% (Scenario 2 below) - an improvement of more than 300%!
Detailed Trade Analysis
What follows are the actual trade recommendations generated by the Compass Investors Profile for IBM during the period June 28, 2002 through July 1, 2003:
Scenario 1: Buy on 'Buy' Signal, 'Sell' (go to cash) on Sell Signal
| Buy Price | Sell Price | Profit % |
| $ 71.35 | $ 80.40 | 12.7% |
| $ 61.54 | $ 77.59 | 26.1% |
| $ 80.70 | $ 81.30 | 0.7% |
| $ 78.02 | $ 78.90 | 1.1% |
| $ 78.45 | $ 79.26 | 1.0% |
| $ 81.89 | $ 86.58 | 5.7% |
| $ 83.10 | $ 83.59 | 0.6% |
| Total Gain: | 47.4% |
Scenario 2: Buy on Buy Signal, Sell Stock Short on Sell Signal
| Buy Price | Sell Price | Profit % |
| $ 71.35 | $ 80.40 | 12.7% |
| Sold Short | 30.6% | |
| $ 61.54 | $ 77.59 | 26.1% |
| Sold Short | -3.9% | |
| $ 80.70 | $ 81.30 | 0.7% |
| Sold Short | 4.2% | |
| $ 78.02 | $ 78.90 | 1.1% |
| Sold Short | 0.6% | |
| $ 78.45 | $ 79.26 | 1.0% |
| Sold Short | -3.2% | |
| $ 81.89 | $ 86.58 | 5.7% |
| Sold Short | 4.2% | |
| $ 83.10 | $ 83.59 | 0.6% |
| Total Gain: | 75.8% | |