Hit rate (accuracy)
Key points
- The close the model predicts for the next day is compared with today’s close to set the predicted direction; if the realised close moves the same way the forecast counts as a hit.
- 50% is coin-toss level; a meaningful model must stay above that with a sufficient sample (at least 30–60 forecasts).
- a high hit rate on few samples can be luck.
Formula / calculation
Hit rate = Number of hits / Total forecasts × 100. Days with zero realised movement are excluded. Mean absolute percentage error (MAPE) = Mean(|Actual − Forecast| / Actual) × 100 measures magnitude error regardless of direction.
Interpretation
50% is coin-toss level; a meaningful model must stay above that with a sufficient sample (at least 30–60 forecasts). The Yatırımcı.AI track record page reports the last 90 days’ hit rate and error by model and by stock.
Pitfalls
a high hit rate on few samples can be luck. Directional accuracy says nothing about the size of moves; small correct moves may not offset large incorrect ones. Past performance is no guarantee of future results and forecasts are not investment advice.
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Frequently asked questions
What is Hit rate (accuracy)?
The hit rate is the share of predictions in which the direction a forecasting model predicted (up or down) matched the realised direction.
How is Hit rate (accuracy) calculated?
Hit rate = Number of hits / Total forecasts × 100. Days with zero realised movement are excluded. Mean absolute percentage error (MAPE) = Mean(|Actual − Forecast| / Actual) × 100 measures magnitude error regardless of direction.
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