Diamondback’s Volume Falls to 406th as High-Volume Strategy Posts 166.71% Return

Diamondback Energy (FANG) closed July 30, 2025, with a 0.98% decline, as its trading volume fell 22.38% to $0.30 billion, ranking 406th among listed stocks. The drop in liquidity reflects reduced short-term investor activity, though the stock remains a key player in the energy sector.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day demonstrated exceptional performance from 2022 to the present. This approach generated a 166.71% total return, significantly surpassing the benchmark’s 29.18% gain. The excess return of 137.53% highlights its ability to capture market momentum effectively.

Risk-adjusted metrics further underscore the strategy’s strength. With a maximum drawdown of 0.00% and a Sharpe ratio of 1.14, the approach balanced high returns with minimal downside risk. These results validate its viability as a short-term trading model, particularly for capitalizing on high-volume stocks like Diamondback during volatile market conditions.