HighLiquidity Trading Strategy Outperforms Benchmark by 137.53 Percent as Marathon Digital Ranks 477th in Daily Volume

Marathon Digital Holdings (MPC) fell 2.65% on July 30, 2025, with a trading volume of $260 million, ranking 477th among stocks by daily liquidity. The decline reflects mixed market sentiment amid broader sector volatility.

Performance metrics for a volume-driven trading strategy highlight its resilience. Over the past three years, purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% cumulative return, far exceeding the benchmark’s 29.18%. The strategy’s excess return of 137.53% underscores its ability to capitalize on high-liquidity opportunities while maintaining a 31.89% compound annual growth rate.

Key strengths include a Sharpe ratio of 1.14, indicating strong risk-adjusted returns, and consistent capital appreciation over the evaluation period. These results suggest the strategy effectively leverages market momentum without excessive exposure, offering a compelling framework for short-term traders prioritizing liquidity-driven opportunities.

The strategy’s historical performance from 2022 to the present yielded a 166.71% return, outperforming the benchmark by 137.53%. It achieved a 31.89% CAGR, demonstrating robust risk-adjusted returns over the period.