Perfection is an ability that grants a damage bonus dependent on the amount of consecutive hits you deal to a certain target. It is not activated directly; in order to use it you must have at least 50 Bushido skill points and then Honor a target creature. Perfection may not be used against other players.
Once this is done, every successful blow will increase your perfection while a miss will lower it. As your level increases, each strike will deal more and more damage (to a maximum of a 100% bonus at the highest level), so the use of equipment with a Hit Chance Increase bonus is desirable. The Bushido ability Lightning Strike is also useful for sustaining a combo.
Your effective Luck level is also boosted by ten percent of your squared perfection score. At its maximum, this score is 100, so therefore the best luck bonus is (100^2)/10 = 1000.
Once the target creature is slain, you lose all perfection and must start over when you honor the next. Originally, perfection could also be used against players, however a later publish removed the ability to Honor them.