Liquidity-Driven Momentum Strategy on Top 500 High-Volume Stocks Surpasses Benchmark by 137.53%

On August 11, 2025, Oneok (OKE) closed with a 1.09% decline, trading on a volume of $270 million, ranking 376th in market liquidity. The stock's movement reflects broader market dynamics where short-term liquidity concentration often drives price action in volatile environments.

A backtested trading strategy focused on the top 500 high-volume stocks held for one day demonstrated a 166.71% cumulative return from 2022 to present, significantly outperforming the benchmark's 29.18% gain. This 137.53% excess return underscores the strategic advantage of capitalizing on liquidity-driven momentum, particularly in turbulent markets where short-term price movements are more responsive to trading activity than fundamental shifts.

The strategy's success is attributed to the compounding effect of daily liquidity concentration. High-volume stocks, including those like Newmont and McKesson referenced in the analysis, exhibit amplified price swings during periods of market stress. For instance, Newmont's 0.79% gain on August 1, 2025, with $700 million in turnover, and McKesson's 0.76% rise on the same day with $670 million in volume, exemplify how liquidity density creates actionable opportunities for traders.

From 2022 to present, consistent performance across varying market conditions validates the strategy's resilience. Despite macroeconomic uncertainties, the approach maintained its edge by leveraging short-term liquidity patterns, reinforcing its viability as a tool for volatility-driven traders seeking to exploit transient price dislocations in high-volume equities.