One of the most delicate phases in the process of developing a trading system is "optimization".
This phase consists of adding or varying some inputs and observing what differences are produced by these changes in the results of the system.
The main mistake that many traders make, however, is attempting to infinitely "perfect" a strategy by continuously adding parameters or manipulating them in order to get the results that show the highest profits.
This mistake is called over-optimization, or overfitting, and it is one of the biggest problems for a systematic trader.
Modifying the parameters of a trading system expecting to obtain the highest Net Profit is entirely wrong because, in doing so, you risk compromising the future reliability of the system itself.
This is why you must avoid making the mistake of overfitting.
In this in-depth video I will explain: