Knowledge center · Validation & statistics
Hit Rate
Of the calls where the model actually took a directional view, the share that were right.
Formula
Hit rate = correct directional calls / total non-Hold calls
Interpretation
Unlike IC, this only scores Buy/Sell-type calls (Holds are excluded), so it answers "when the model committed to a direction, how often was it right."
What good looks like
Above 55% on a reasonable sample size (dozens of calls) is a real edge for a single-name directional signal; above 60% is strong.
What bad looks like
At or below 50% means the directional calls are no better than a coin flip, regardless of how confident they looked.
Typical range
48%–58% is common for equity signals; anything above ~65% on a small sample is more likely noise than skill.
How OmniSignal uses it
Confidence and risk framing mean little if the underlying directional calls aren't beating chance — hit rate is the plain-language check on that.
References
Standard classification accuracy, applied to directional trading signals
Related concepts