Indiscriminate exploration of the combination space quickly introduces statistical distortions such as data snooping, multiple testing bias and overfitting, increasing the likelihood of adapting to noise rather than to a real underlying structure. Once introduced, such distortions become particularly complex to detect and correct retrospectively.
To mitigate these risks, the creation of a trading system should not be viewed as a simple optimisation of parameters. Instead, it is a structured process that links observation, interpretation, formalisation and validation. This framework provides a stable structure that guides development from initial observation to implementable strategies. While it does not promise predictions or eliminate uncertainty, it does ensure a reliable, replicable and verifiable method.
