Which factor is NOT one of the three factors for a better performing trending strategy?

The correct response identifies shorter calculation periods as not being one of the three factors for a better performing trending strategy. In trend-following strategies, longer calculation periods tend to smooth out the noise in price data, providing a clearer picture of the trend. This allows traders to capture larger market movements by reducing the potential for whipsaws, which can occur in shorter time frames where price can be more volatile and influenced by random fluctuations.

Additionally, lower frequency data, which is often used in the context of longer time frames, provides a better signal for trend identification. Markets that are closely linked to their underlying fundamentals also support the development of effective trending strategies, as they tend to reflect true value over time, rather than being impacted by transient market sentiment.

Thus, the focus on longer calculation periods and fundamental linkages enhances the robustness of trend-following strategies, while shorter calculation periods are generally less effective in capturing stable trends.