HighLiquidity Strategy Yields 166.71% Return as General Slides to 455th in Trading Volume Rankings

On August 1, 2025, General (GD) saw a trading volume of $0.28 billion, marking a 46.22% decline from the previous day’s activity. The stock ranked 455th in trading volume among listed equities, reflecting subdued liquidity conditions. Despite this, the broader market environment remains influenced by liquidity concentration, as evidenced by a high-performing trading strategy that selected top 500 stocks by daily volume. This approach generated a 166.71% return between 2022 and the present, far exceeding the benchmark’s 29.18% performance with a 137.53% excess return.

The strategy’s success underscores the importance of short-term liquidity dynamics in driving stock prices. Companies experiencing surging volumes, such as those highlighted in the backtest, demonstrate how market participants prioritize momentum in high-liquidity environments. While General’s volume retreated sharply, the broader trend suggests that stocks maintaining strong trading activity could benefit from sustained investor focus on liquidity-driven opportunities.

Historical data confirms the strategy’s resilience, with consistent outperformance attributed to its alignment with market liquidity patterns. The 137.53% excess return highlights the effectiveness of capitalizing on short-term volume surges, particularly in sectors where earnings announcements or corporate actions reinforce positive price momentum. This aligns with General’s current positioning, as liquidity shifts continue to shape equity market behavior in the near term.