Per page 10 of DDA1:
Reading this as is, the rake could dodge melee attacks, but not thrown or missile attacks. He could also dodge touch spells. Thus, he could dodge one incoming attack and still be able to attack in the same round if he won the initiative roll for the round. But if he choose to not attack that round, and won initiative, he could attempt to dodge all perceived incoming attacks.A rake with initiative can dodge one melee attack by rolling his "Hide in Shadows" percentage. If he declares no attacks, he can try to dodge each incoming melee attack in the round.
Ranged spells, area effect attacks, and missiles cannot be dodged, and the maximum chance do dodge never exceeds 90%
One would presume the rake could also use combat movement normally while while dodging, as it is not stated that this is not possible.
Now, at low levels, this ability does not seem too unbalanced, as the Hide in Shadows percentile chances are low, but as the Rake climbs in levels, this chance goes up. Eventually the dodge ability would cap out at 90% chance of success. This would seem to be crazy unbalanced, as a rake who won initiative could dodge a melee attack that struck him with relative ease.
Part of me likes this ability, but I can see that it is obviously overpowered at the top end. Any suggestions on how this ability could be modified to make it balanced for game play with the rake class?