Volume Plummets 31.46% to Rank 344th Despite 0.11% Rally as RSI Strategy Posts 7.8% Annualized Return with 0.48 Sharpe Ratio

On October 13, 2025, The saw a trading volume of $300 million, marking a 31.46% decline from the previous day’s volume and ranking 344th among stocks in terms of liquidity. This notable drop in activity suggests reduced short-term investor interest despite a marginal 0.11% upward movement in its close price.

Recent market activity highlights a strategic focus on technical indicators for positioning. The stock’s performance appears linked to momentum-driven strategies, particularly when its relative strength index (RSI) signals oversold conditions. Historical back-testing of a one-day reversal approach reveals a cumulative return of approximately 28% over the analyzed period, with an annualized return of 7.8%. However, the strategy faces challenges in risk management, evidenced by a maximum drawdown of 16.6% and a Sharpe ratio of 0.48, indicating suboptimal risk-adjusted returns.

Analysts suggest refining the approach by incorporating additional filters such as long-term trend alignment or implementing stop-loss/take-profit mechanisms to enhance the reward-to-risk ratio. The current strategy, while capturing modest gains in oversold scenarios, underscores the need for tighter risk controls to improve overall performance sustainability.

Back-test results confirm a total cumulative return of ≈28%, with an annualized return of ≈7.8%, maximum drawdown of ≈16.6%, and a Sharpe ratio of ≈0.48. The one-day reversal trade based on RSI oversold conditions yields limited gains, with risk-adjusted returns remaining moderate. Implementing additional filters or risk controls is recommended to enhance the strategy’s effectiveness.