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AI supply chain term

Hit rate

The share of resolved recorded calls that moved the way the engine said - always quoted with the number of calls behind it.

What it means

Hit rate is the simplest grade on the record: of the calls that have resolved, how many moved in the called direction. THE ENTITY computes it only from recorded, time-stamped calls joined to stored closing prices - never from a backtest or a replay - and quotes it with its denominator, because the same rate over five calls and over two hundred calls are very different claims. A young record means a small denominator, and the product shows that rather than hiding it. Hit rate is deliberately paired with the average move and the rank IC, since a high hit rate of tiny wins can coexist with a poor overall read.

Why it matters to investors

Always read the denominator next to the percentage. A hit rate computed from immutable recorded calls, shown with its sample size, is evidence; the same number without either is marketing.

Related terms

Recorded callA time-stamped call the engine emits and writes to the record the night it is made - then grades publicly against what prices did next.Information coefficient (rank IC)The rank correlation between one night’s conviction scores and the price moves that followed - did higher-scored names actually move more?Decile spreadThe forward return of the engine’s top-decile names minus its bottom decile, over the week after a recorded night - the money version of the rank IC.

See Hit rate in the live AI chain.

THE ENTITY maps every constraint onto one live model - which part is tight now, who owns it, and who gets squeezed when it moves. Plain-English reads you can check.

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THE ENTITY is an educational read on the AI supply chain - research, not investment advice. It explains how the chain works and who sits where, never price targets or buy/sell calls.