Beam-based alignment and feedback systems are essential for the operation of the Free Electron Lasers (FELs) and Linear colliders. They require a certain number of beam position monitors (BPMs) at selected locations and that their resolution can reach hundreds of nanometers or even the order of nanometers. Cavity BPMs adopting a resonant cavity structure having the advantage of high position resolution are widely used in the field of accelerators. A typical system includes a cavity BPM pickup, a radio frequency signal conditioning front-end and a digital signal processing electronic. How to systematically analyze the impact of the key parameters of each subsystem on the performance of the whole system, and combine the requirements of the system, operation mode of the facilities, the current level of equipment processing and the development of the electronics, so as to achieve the optimal and balanced allocation of the key technical indicators of each subsystem, is the primary issue to be considered when designing a CBPM system. In this paper, based on theoretical analysis, the relationship between the relative amplitude extraction uncertainty of the CBPM system and the key parameters of each subsystem is proposed, which could provide clear guidance for the design and optimization of a CBPM system. In addition, considering the engineering requirements of the Shanghai High repetition rate X-ray Free Electron Laser and Extreme Light facility (SHINE) for beam position monitor, the allocation of the key technical indicators of the CBPM system using the optimized design method is also introduced. Accordingly, the development of each subsystem was completed, and the beam test bench was also built at the Shanghai Soft X-ray FEL facility (SXFEL), based on the evaluation method of divided power, the beam experiment results show that the position measurement uncertainty of the CBPM system can reach 40 nm at the bunch charge of 100 pC, which is consistent with the theoretical analysis results and better than the requirements of the SHINE.
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