Unlock the full potential of a powerful trading platform with advanced features for customization, analysis, and risk management.

Thinkorswim is a powerful trading platform by Charles Schwab, designed for serious traders. It offers advanced tools like over 400 technical indicators, customizable charts, and the ThinkScript programming language for creating custom strategies. Key features include:

• Free Level II Quotes: Access real-time market data.
• All-in-One Trading: Trade stocks, options, futures, and forex.
• Customization: Personalize charts, layouts, and indicators.
• Risk Management Tools: Position size calculators and portfolio analytics.
• Strategy Testing: Use OnDemand to simulate trades with historical data.

If you're looking for a platform with advanced charting, scripting capabilities, and robust risk management, Thinkorswim is an excellent choice for professional trading. Let’s explore how to maximize its features step by step.

Advanced Features and Customization - ThinkorSwim Tutorial

Advanced Charts and Technical Analysis

Thinkorswim offers advanced charting tools, allowing traders to create setups tailored to their strategies. With a wide range of technical indicators and customization options, you can design analysis setups that align with your trading approach.

Setting Up Custom Charts

Through the Chart Settings menu (accessible via the gear icon), you can customize various chart components to suit your needs:

Component	Customization Options
Visual Elements	Colors, grid lines, chart types (bars, candles, lines)
Time Settings	Custom intraday and daily timeframes
Layout	Multiple chart windows and flexible grid arrangements
Studies	Indicator combinations and parameter adjustments

ThinkOrSwim Rangers Europe highlighted the platform's grid layout flexibility:

"Traders could add up to 6 separate windows, each displaying different charts or tools like Level 2 data and Time and Sales information. For example, a trader could set the first window to a 5-minute chart for intraday trading with pre-saved intraday parameters, the second window to Level 2 data for the same stock, and a third window to news related to that stock."

Once you've customized your charts, you can further refine them by selecting and applying the right indicators for your strategy.

Technical Indicators and Drawing Tools

A 2019 study revealed that 97% of long-active traders experienced losses . To improve your trading strategy, consider combining complementary indicators:

• Trend Indicators: Help you determine the market's direction.
• Momentum Indicators: Provide confirmation signals for your trades.
• Volume Indicators: Confirm price movements by analyzing trade volume.

Match your indicators to market conditions and the trading timeframe you’re working with. Save your frequently used indicator combinations as study sets for quicker access during trading hours. Pair these tools with real-time data analysis for sharper market insights.

Live Market Data Analysis

Thinkorswim's real-time data tools enhance your market analysis with features like:

• Excel Integration: Use RTD commands such as =tosAskPrice('Symbol'), =tosBidPrice('Symbol'), and =tosLastPrice('Symbol') to pull live data into Excel spreadsheets .
• Economic Data Interface: Access a detailed economic data feed for a broader market perspective. You can integrate these indicators into your watchlists, though only the Last and Description columns will display values .

These features allow you to stay informed and make data-driven decisions in real-time.

ThinkScript Programming Guide

Once you've mastered chart settings, it's time to dive into ThinkScript. This programming language, exclusive to Thinkorswim, lets traders design custom indicators and automate their trading strategies.

ThinkScript Basics

ThinkScript simplifies market analysis and trading automation. Its built-in thinkScript Editor flags coding errors in red, making debugging more straightforward .

Here are the key components of ThinkScript:

Component	Purpose	Usage
Variables	Store and manipulate data	Use def for calculations
Plots	Display visual output	Create custom indicators
Studies	Technical analysis tools	Build personalized analysis
Alerts	Automated notifications	Monitor specific conditions

Once you understand these basics, you can start creating custom indicators to suit your trading style.

Creating Custom Indicators

To create effective custom indicators, focus on clarity and efficiency in your code. Here are some tips:

• Variable Management
  Use concise and efficient variables to lower processing demands. For example:

  def c = close;  
  def h = high;  
  def l = low;
  

• Code Organization
  Maintain a clean code structure and use version control to track changes. The thinkorswim Learning Center suggests commenting out old code instead of deleting it outright. This approach makes it easy to revisit earlier versions if needed .
• Testing Process
  Before using custom indicators with real funds, test them in a risk-free environment like Schwab's paperMoney platform .

Advanced Trading Scripts

Once you're comfortable creating indicators, you can move on to building complete trading strategies. ThinkScript offers tools to take your trading to the next level:

• Access market and financial data to design conditional orders and screen stocks effectively .
• Develop strategies through the Charts tab: go to Studies > Edit Studies > Strategies > Create.
• Boost performance by using local variables and limiting external data calls .
• Define precise execution conditions with the AddOrder function .

Risk Management and Portfolio Tools

Managing risk effectively is key to long-term success on Thinkorswim. The platform provides several tools to help traders make smarter decisions about position sizing and portfolio management.

Position Size Calculator

Thinkorswim's Position Size Calculator helps traders figure out the right trade size based on their personal risk tolerance. It automatically pulls your account's net liquid value and lets you set risk limits as either a percentage or a fixed dollar amount .

Here’s a breakdown of what the calculator offers:

Feature	Benefit	How It Helps
Risk Percentage Setting	Calculates position size based on account value	Ensures consistent risk levels across trades
Stop Loss Options	Includes ATR, Kase, $ Offset, % Offset, and Fixed Price	Adjusts to different market conditions
Automated Calculations	Determines share size, limit offset, and stop offset	Minimizes manual errors

This tool is particularly helpful during volatile market conditions, reducing mistakes and missed opportunities . Once trade sizes are set, you can dive deeper into portfolio analysis using the Analyze tab.

Portfolio Analytics

After determining your trade sizes, the Analyze tab offers tools to evaluate and monitor your portfolio. These features provide insights to make better trading decisions:

• Risk Profile: Simulates trades and calculates the theoretical probability of profit.
• Probability Analysis: Projects price ranges based on statistical probabilities.
• thinkBack: Lets you back-test options strategies using historical data.

To unlock the full potential of these tools, enable Advanced Features in your account settings. You can analyze data across various timeframes, from 1-minute intervals to daily charts, giving you flexibility for different trading strategies.

Portfolio Correlation Tools

Understanding how assets interact is crucial for building a diversified portfolio. Thinkorswim’s correlation analysis tools measure the relationships between securities on a scale from -1 to +1 .

"When correlations turn positive, investors question the benefits of diversification... That may not be a problem when both asset classes are going up, but it's extremely painful when both are going down." - Liz Ann Sonders, Schwab's chief investment strategist

The Correlation Clusters tool groups assets with similar behaviors, helping traders manage exposure to correlated securities . This is especially useful for:

• Building balanced portfolios
• Managing exposure to specific sectors
• Spotting hedge opportunities
• Reducing overall portfolio risk

These tools give traders an edge in creating and maintaining a well-diversified portfolio.

Strategy Testing and Improvement

Thinkorswim offers a robust suite of tools to help traders test and refine their strategies. With the ability to simulate trades and analyze performance under various market conditions, it’s designed to give traders a clearer edge.

Market Replay with OnDemand

OnDemand is Thinkorswim's historical market simulator, allowing traders to replay past market conditions with precision and control .

Here’s what makes OnDemand stand out:

Feature	What It Does	How It Helps Traders
Time Control	Access any market date/time from the past 10 years	Test strategies during different market cycles
Data Granularity	View data at tick, minute, daily, weekly, or monthly intervals	Assess performance across varied timeframes
Virtual Account	Begin with $100,000 in simulated funds	Practice without risking real money
Trade Execution	Executes trades instantly at the median price	Focus on strategy without worrying about slippage

This tool lets you test your strategies in a controlled environment before deploying them in live markets.

Strategy Testing Methods

Thinkorswim provides a structured approach to test and evaluate performance under different scenarios. Here’s how to get started:

• Set Up Test Parameters: Choose specific market conditions and timeframes to create a controlled testing environment.
• Run Test Trades: Simulate trades using historical data, with the platform tracking entry and exit points automatically.
• Analyze Results: Use the "Show Report" feature to review key performance metrics and pinpoint areas for improvement.

Adjusting Strategy Settings

Once you’ve reviewed your test results, it’s time to tweak your strategy. Thinkorswim offers tools to adjust elements like entry/exit rules, position sizing, and risk management settings. These adjustments can help you fine-tune your approach for better outcomes.

To ensure consistency, save your optimized settings as chart defaults. This way, your strategy will remain aligned across different trading sessions and conditions.

One thing to note: OnDemand executes trades at the median price, which doesn’t account for real-world slippage. Keep this in mind when interpreting results and making adjustments.

Next Steps with Thinkorswim

Start integrating Thinkorswim's powerful tools into your daily trading routine to improve how you approach the market.

Here’s a quick breakdown of how to incorporate its advanced features effectively:

Phase	Key Actions	What You’ll Gain
Initial Setup	Customize your workspace, link charts, and create watchlists	A more organized and efficient trading environment
Practice Mode	Use PaperMoney to test strategies without risk	A safe way to refine your trading ideas
Strategy Development	Build custom indicators using ThinkScript	Tailored signals that fit your trading style
Automation	Set up alerts and trading rules	Reliable and consistent execution

By combining advanced charting and scripting techniques, these steps help streamline your trading process.

One helpful tip: Use Thinkorswim's color-linking feature to connect tools and ensure smooth data flow. This makes it easier to analyze multiple assets without losing sight of your strategy’s big picture .

To keep everything running smoothly, set up a regular review process:

• Track Performance: Use Portfolio Analytics weekly to evaluate how your strategies are performing.
• Refine Your Approach: Update scripts and automation rules as you backtest and adapt to changing market conditions.

Thinkorswim’s learning center is packed with resources to help you stay updated on new features and techniques . Plus, tools like PaperMoney let you experiment with strategies risk-free , while OnDemand allows you to test ideas against historical market data .