How do you compensate a saddle?
A compensated saddle includes 'grooves' or 'notches' where the high E, B and G strings rest. This adjusts the length of the string 'compensating' for accurate 'intonation' so the guitar sounds in tune with notes played higher up the fretboard. A non-compensated excludes any grooves and is flat across the surface.
What is a compensated saddle?
At its most basic, compensation means that the saddle is placed at an angle to make a slightly longer-sounding length for the lower strings and a shorter one for the high strings. The angle is dependent on a few things, including the scale length and recommended string gauge.
How do you make a compensated nut?
Nut compensation is done by comparing and adjusting the nut for the open string to be in tune with fret 2 or fret 3. (I don't use fret 1, because of its proximity to the extra height of the nut.)