HighVolume Stock Strategy Ranks Top 500 Delivers 16671% 3Year Return Outpacing Benchmark by 13753%

On July 30, 2025, Texas Instruments (TXN) closed with a 0.97% decline, trading at a daily volume of $1.32 billion, ranking 70th in market activity. The stock's performance coincided with broader market volatility amid mixed signals on sector-specific demand drivers.

Strategic analysis of high-volume trading patterns reveals consistent outperformance in volume-weighted short-term positioning. A strategy focusing on the top 500 stocks by daily trading volume and holding positions for one day generated a 166.71% return between 2022 and July 30, 2025. This significantly exceeded the benchmark's 29.18% return, delivering an excess return of 137.53% over the same period.

The approach demonstrated robust risk-adjusted performance, achieving a compound annual growth rate (CAGR) of 31.89%. This highlights the effectiveness of leveraging liquidity concentration in capturing market sentiment shifts. Notably, the strategy's success spanned multiple sectors, including industrials, technology, and consumer staples, underscoring the universal applicability of volume-driven positioning.

Backtesting data confirms the strategy's consistency across high-volume equities, with no reliance on sector-specific fundamentals. The 166.71% cumulative return from 2022 to July 30, 2025, outperformed the benchmark by 137.53 percentage points, maintaining a CAGR of 31.89% throughout the period. This validates the strategy's ability to capitalize on short-term liquidity dynamics without requiring directional market forecasts.