The Probability Analysis interface enables you to assess a trade’s potential for movement and manage the potential risk involved. Watch the tutorial below to learn more about probability curves and price slices, what their values mean, and how to set up their parameters.
The interfaces of the Analyze tab provide you with analysis techniques of many kinds, including simulation of "what-if scenarios" on both real and hypothetical trades, volatility and probability analyses, the Economic Data indicator database, and option back-testing. These interfaces are: Add Simulated Trades, Risk Profile, Probability Analysis, Economic Data, thinkBack, Fundamentals, and Earnings.
The video below is a brief overview of the Analyze tab.
The thinkBack tool is a thinkorswim feature designed for option back-testing. It stores nearly a decade of historical option trade data and allows you to back test strategies by entering hypothetical trades in this virtual trading environment.
Backtesting is the evaluation of a particular trading strategy using historical data. Results presented are hypothetical, they did not actually occur and there is no guarantee that the same strategy implemented today would produce similar results.