Top 500 by Daily Trading Volume Strategy Surges with 166.71% Return Outperforming Benchmark by 137.53%

Baidu (BIDU) rose 1.11% on Tuesday, with a trading volume of $250 million, ranking 465th among stocks by liquidity. The move followed broader market dynamics highlighting the role of high-volume equities in short-term performance.

The strategy of targeting top 500 stocks by daily trading volume has shown strong historical returns. From 2022 to the present, this approach generated a 166.71% total return, significantly outperforming the benchmark index’s 29.18% gain. The outperformance underscores how liquidity concentration in frequently traded assets can drive price momentum, particularly in volatile environments.

High-volume stocks often reflect heightened investor activity and market sentiment. Short-term traders leveraging these positions benefit from tighter bid-ask spreads and greater price discovery efficiency. However, the strategy’s success hinges on rapid execution and risk management, as sudden shifts in market conditions can amplify losses.

The 166.71% return since 2022 demonstrates the potential of liquidity-focused strategies to capitalize on transient opportunities. This aligns with Baidu’s recent performance, suggesting that increased trading interest in high-liquidity names may temporarily boost share prices. Investors should remain cautious, however, as the approach carries elevated risks due to its reliance on short-term market fluctuations.