SoundHound Shares Drop 6.57% on $1.01 Billion Volume as Liquidity-Driven Strategy Back-Test Ranks 128th in U.S. Market

SoundHound Inc. (SOUN) fell 6.57% on October 10, 2025, with a trading volume of $1.01 billion, ranking 128th among U.S.-listed equities. The decline followed a strategic back-test framework proposal aimed at evaluating liquidity-driven trading strategies across a defined universe of U.S. stocks.

The proposed methodology outlines a 500-stock universe from NYSE and NASDAQ, excluding ADRs and ETFs. It specifies execution rules based on daily closing volumes, with trades executed at the next day’s open and closed at the close. Equal-weight allocation is applied to the top 500 volume-ranked names, using a 2022-01-03 to 2025-10-10 timeframe. Parameters include potential filters for minimum price thresholds and daily notional trading volume to exclude illiquid securities.

Implementation requires confirmation of assumptions such as price and market-cap filters. Once validated, the process will generate daily trade signals for the “Top-500-by-volume” list, calculate cumulative returns, annualized performance, volatility metrics, Sharpe ratios, and maximum drawdowns, alongside equity curve visualizations. The framework assumes no transaction costs or slippage, aligning with common conventions for short-horizon liquidity strategies.

To run this back-test accurately, the following details must be finalized: universe composition, execution conventions, date ranges, and additional constraints. Upon confirmation, the system will pull historical volume and price data, generate trade signals, and execute the back-test to produce performance metrics.