PDD’s Volume Plummets to 252nd as High-Volume Strategy Yields 166.71% Gains

On August 4, 2025, PDD (Pinduoduo) closed with a 1.80% gain, while its trading volume dropped sharply to $0.43 billion, marking a 48.97% decline from the previous day’s activity. This placed the stock at rank 252 in terms of trading volume among listed equities. The move followed a strategy-driven liquidity dynamic observed in high-volume markets.

Recent market analysis highlights the impact of liquidity concentration on short-term performance. A strategy focused on purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% cumulative return from 2022 through the present. This significantly outperformed the benchmark index, which returned 29.18% over the same period, by a margin of 137.53%. The results emphasize how liquidity clustering can amplify price swings, particularly in volatile conditions where institutional and algorithmic trading activity often drives rapid directional shifts.

The effectiveness of this approach in volatile environments underscores the importance of monitoring high-liquidity stocks. While PDD’s recent volume contraction suggests reduced immediate market participation, historical patterns indicate that concentrated liquidity can create opportunities for rapid gains or losses. The strategy’s success also reflects the influence of algorithmic and institutional players, which tend to capitalize on short-term imbalances in trading flow.

The backtest results confirm that the strategy of targeting top-volume stocks for one-day holds delivered a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This outcome aligns with the observed role of liquidity concentration in driving short-term performance, particularly in markets characterized by pronounced volatility.