1.)Install MPC-HC (64bit if youre on 64bit Windows)
2.)Get latest madVR and extract it somewhere in program files. Run install.bat to install it, then run restore_default_settings.bat. Do not remove the madVR folder afterward.
3.)Get xysubfilter beta (64 bit if youre on 64bit Windows). Installation process is similar to madVR.

After you installed everything. Open MPC-HC's settings and chose madVR under Options -> Playback Output -> DirectShow Video. Chose XySubFilter under Subtitle Renderer.

Go to Options -> Internal Filters, click on Video decoder, and select None in the Hardware Decoder to use.

Play some video and click on madVR -> Edit settings.

Go to Processing -> artifact removal and check reduce banding artifact and reduce ringing artifacts.

Go to Processing -> zoom control and set move subtitles: to ... into active video area.

Go to Rendering -> general settings and check use Direct3D 11 for presentation.

Go to Rendering -> smooth motion. Tick enable smooth motion frame rate conversion.

Go to Rendering -> trade quality for performance and uncheck everything.