I'm relatively new to system trading and I'm struggling along to learn AmiBroker. I've read a smattering of books on system development and remain somewhat uncertain as to the best way to approach this task.
In _Trading Systems_ by Tomasini and Jaekle (2009), discussion is given to varying parameter values while leaving others constant and looking for plateaus rather than spikes on hypothetical equity curves. In case anyone has the book, Figure 2.2 looks very simple but I wonder if [this one graph is] deceptively so.
Suppose you have a MA crossover system with a slow length and a fast length. Suppose further that you wish to test slow lengths between 5-14 and fast lengths between 50-100 (increments of five). Like Figure 2.2, you could keep the slow length (e.g. at 5) while plotting net profits vs. the fast length. Should you repeat that plot for each of the 10 possible slow lengths, though? Now you're looking at 10 graphs for each possible fast length--that's 500 total graphs!
Add a third parameter to the system and you can see how the complexity multiplies.
What if some slow lengths produce plateau regions as the fast lengths are varied while other slow lengths produce spiky plots as the fast lengths are varied? Ultimately it will be a subjective decision as to whether the trader feels confident enough based on the % of plots that look favorable (i.e. plateau vs. spike) but--am I even on the right track in beginning to understand this?