Ranking 217th in Daily Trading Volume High Liquidity Strategy Generates 166.71% Return Surpassing Benchmark by 137.53

On August 8, 2025, The recorded a trading volume of $0.44 billion, ranking 217th in market activity for the day. This liquidity level reflects moderate investor engagement, positioning it within the mid-tier of actively traded equities.

A strategy centered on purchasing the top 500 stocks by daily trading volume and holding them for one day has demonstrated exceptional returns since 2022. This approach generated a cumulative 166.71% return, significantly outperforming the benchmark index's 29.18% gain. The excess return of 137.53% highlights the efficacy of liquidity-focused trading in capturing short-term momentum, particularly in markets marked by pronounced volatility.

The strategy’s success is attributed to the concentration of liquidity among high-volume equities. By targeting assets with substantial trading interest, investors can capitalize on price movements driven by macroeconomic shifts and investor sentiment. However, the approach carries inherent risks. High-volume environments often correlate with elevated volatility, which may amplify both gains and losses. Sustained performance depends on stable market conditions and the persistence of liquidity in targeted securities.

The backtest results from 2022 to the present confirm the strategy’s viability. The 166.71% return underscores the potential of liquidity-driven trading but also emphasizes the need for rigorous risk management. Investors adopting this approach must account for its sensitivity to market dynamics and ensure alignment with their risk profiles.