We present a novel system for parameter design and optimization of modulated lidar. The system is realized by combining software simulation with hardware circuit. This method is more reliable and flexible for lidar parameter optimization compared with theoretical computation or fiber-simulated system. Experiments confirm that the system is capable of optimizing parameters for modulated lidar. Key parameters are analyzed as well. The optimal filter bandwidth is 200 MHz and the optimal modulation depth is 0.5 under typical application environment.