High-Volume Strategy Surpasses Benchmark with 166.71% Returns as CrowdStrike Plunges Despite 31st-Ranked Liquidity

CrowdStrike Holdings (CRWD) closed August 7, 2025, with a 5.91% decline, despite a 169.33% surge in daily trading volume to $2.46 billion, ranking 31st in market liquidity. The stock's performance diverged from broader liquidity-driven strategies that have shown consistent short-term outperformance in volatile markets.

Backtesting of a high-volume trading strategy revealed significant returns when purchasing the top 500 stocks by daily liquidity and holding for one day. From 2022 to present, this approach generated 166.71% total returns, surpassing the benchmark index's 29.18% gain by 137.53 percentage points. The results highlight liquidity concentration as a key driver of short-term performance, particularly in environments marked by shifting investor sentiment and macroeconomic uncertainty.

The strategy maintained stable performance across varying market conditions, demonstrating the reliability of liquidity-focused approaches in capturing short-term momentum. This aligns with observed trends where stocks with elevated trading volumes tend to outperform in turbulent markets, as liquidity provides clearer price discovery signals amid fluctuating demand.

The 166.71% return from the high-volume strategy (2022-present) significantly exceeded the benchmark's 29.18% gain, with a 137.53 percentage point outperformance. This underscores the strategic advantage of liquidity concentration in short-term equity trading, particularly during periods of heightened market volatility when trading activity becomes a critical performance determinant.