3 Ways to Automate Trading for Thinkorswim in 2023

Introduction

Automated trading has become a cornerstone of modern financial markets, offering traders the ability to execute strategies without the need for constant monitoring. Thinkorswim, a trading platform by TD Ameritrade, provides a range of options for those interested in automating their trading activities. In this blog post, we’ll explore three methods to automate trading in Thinkorswim, starting with the highly customizable Nightshark, followed by Thinkorswim’s built-in OCO (One Cancels Other) brackets, and finally, the TD Ameritrade Broker API for those who are comfortable with coding.

1. Nightshark: The Ultimate Customizable Tool

(1) Automating Your Trading Ideas with Nightshark | Full tutorial — YouTube

Website: Nightshark website

Features

Nightshark is a Windows-based trade automation tool designed to work seamlessly with Thinkorswim. It offers a high level of customization, allowing traders to automate complex strategies involving options, trailing stops, and even candlestick pattern detection.

Advantages

• Highly Customizable: Nightshark can be tailored to execute almost any trading strategy you can think of.
• User-Friendly: The tool is relatively easy to set up, especially if you are familiar with Thinkorswim.
• Real-Time Monitoring: Unlike other methods, Nightshark allows you to see everything that’s happening within the Thinkorswim UI itself.

Security and Support

Nightshark ensures that all your activities stay within your local machine, providing an added layer of security. Additionally, it offers live chat support on its website, which is highly responsive during business hours.

2. Thinkorswim OCO Brackets: The Built-In Option

(1) Creating 1st Triggers OCO Orders on thinkorswim® — YouTube

Features

Thinkorswim offers built-in OCO brackets that allow traders to place conditional orders. These brackets can be useful for setting profit targets and stop losses.

Limitations

• Lack of Customization: The built-in OCO brackets are not as customizable as Nightshark. They lack the ability to wait for the right setup before placing an order.
• Limited Strategy Execution: The OCO brackets are best suited for simple strategies and may not be ideal for more complex trading setups.

3. TD Ameritrade Broker API: For the Coding Experts

(1) TD Ameritrade Full API Tutorial (Authentication and Real-time Data) — YouTube

Features

The TD Ameritrade Broker API provides a way for traders to automate their strategies by writing custom code. This method offers the highest level of customization but requires extensive coding experience.

Challenges

• Steep Learning Curve: You’ll need a strong understanding of programming to use the API effectively.
• Debugging Difficulties: Unlike Nightshark, where you can see what’s happening in real-time, debugging with the API requires going through logs, making it harder to identify issues.

Conclusion

Automating your trading activities on Thinkorswim can be achieved in various ways, each with its own set of advantages and limitations. Nightshark stands out for its high level of customization and user-friendly interface, making it the top choice for many traders. Thinkorswim’s built-in OCO brackets offer a simpler but less customizable alternative. Finally, for those who are comfortable with coding, the TD Ameritrade Broker API provides the most flexible but also the most challenging option.

As always, the effectiveness of these automation methods will depend on your trading strategy and how well you’ve configured the tools to execute it.