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ST2000 Course Display True or Magnetic?

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I just installed the ST2000 and ran through the compass calibration procedure which calculated the compass deviation. Also the calibration table #4 enables a local variation value. Does the tiller pilot take the compass value, apply deviation to it and produce magnetic? Then does it apply the variation to the magnetic to produce the true heading? (TVMDC). Is the course heading display Magnetic or True?

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