Compass — methodology

Compass picks one of three GPW indices, or cash.

Rules

1. We compare WIG20, mWIG40 and sWIG80.
2. For each we take the average of the 6-month and 12-month returns (on month-end closes).
3. We choose the index with the highest average.
4. We hold it only if its price is above the average of the last 10 month-end closes. Otherwise the portfolio is in cash.
5. One decision a month, executed at the open of the first session of the month.

Deviations from the textbook version

• Price indices instead of total return (TR).
• Cash earns no interest.
• Execution at the open, with no index-tracking costs (the position is held in index units).

Data

Needs data/market/_WIG20.csv, _MWIG40.csv, _SWIG80.csv and at least 13 month-end closes.

Virtual portfolio

• Capital PLN 100,000, commission 0.2% per trade, start 6 Nov 2026, first orders at the open on 9 Nov 2026.
• Benchmark: WIG20 (price index).
• A simulation on raw GPW archive prices. Dividends are not yet added to the portfolio and tax is not included.
• Missing data is not an error: the strategy stays in cash and the Report tab shows what is missing ("waiting for data").
• A screening exercise, not investment advice.