The maximum daily return reflects the extreme positive returns that a stock may experience within a specific time window. This factor can be regarded as an indicator of the speculativeness and potential explosiveness of a stock. The higher its value, the greater the single-day increase in the stock has experienced in the past period of time. Empirical studies have shown that there is a significant negative correlation between the maximum daily return and future stock returns, which indicates that stocks with extreme positive returns in the past may face the risk of return retracement or increased volatility in the future, and therefore can be considered as a risk factor. The application scenarios of this factor include: risk management, screening of high-volatility stocks, and combined use with other momentum factors.