Technical Protocol: Resetting Position History in Thinkorswim Paper Money
1. Resetting the Entire Account Balance
In the Thinkorswim (TOS) desktop environment, resetting position history and account balances is not handled through a simple "Delete" key. Because TOS simulates institutional accounting, the software maintains a ledger of every transaction. To effectively "reset" and return to a clean starting state—typically 100,000 or 200,000 USD—you must trigger a global account reset. This action flattens all current positions and restores the original buying power, essentially archiving the previous performance data to provide a fresh statistical baseline.
- Navigate to the Monitor tab in the upper-left corner.
- Select the Activity and Positions sub-tab.
- Locate the Account selector at the very top (e.g., "Margin" or "IRA").
- Right-click directly on the account name or the account number.
- From the context menu, select Reset paper money account.
- A confirmation dialog will appear. Select Yes to confirm the wipe.
2. The "Adjust Cash" Precision Method
Sometimes a strategist does not wish to wipe their history but rather wants to adjust the available capital to reflect a real-world scenario (e.g., a 5,000 USD starter account). The "Reset" button defaults to high six-figure sums which can distort risk management training. To customize your capital without deleting your trade history, use the Adjust Cash function.
- Go to Monitor > Activity and Positions.
- In the Position Statement section, look for the button labeled Adjust Cash (usually located near the top right of the position list).
- Enter a positive value to add capital, or a negative value (e.g., -95,000) to reduce the balance.
- The Net Liq (Net Liquidating Value) will update instantly while preserving your previous trade logs in the "Account Statement" tab.
3. Clearing Activity and Orders
A common frustration for paper traders is the "Activity" log showing hundreds of canceled or expired orders from previous weeks. While the Reset function clears current positions, the "Activity" log is often filtered by date. To "hide" this history, you must adjust the filter settings in the Monitor tab. Note that in a simulated environment, certain "Working" orders might persist even after a reset if they were GTC (Good 'Til Canceled).
In the Monitor > Account Statement tab, look for the "Day" filter. Setting this to "1 Day" will hide all trades from previous sessions. This does not delete them from the database but provides the visual "Clean Slate" necessary for focus.
4. Resetting P&L Year-to-Date (YTD)
Thinkorswim tracks P&L YTD as a running total. A global reset usually zeroes out the current session's P&L, but the YTD figure may occasionally persist depending on the version of the software and whether you are using the Web, Mobile, or Desktop application. If the P&L YTD remains after a right-click reset, it indicates that the "Open Profit" has been closed, but the "Realized Profit" ledger remains. In this scenario, the only way to achieve a true 0.00 YTD is to contact support or use a secondary "linked" paper account if available.
5. Handling Trapped Positions
In low-liquidity environments (common in OTC or penny stock paper trading), you may find "Trapped" positions that the Reset function fails to close properly due to wide spreads. If a position persists after a reset, you must manually "Flatten" it. Use the Flatten button in the Active Trader ladder or right-click the position and select Create Closing Order. Ensure you use a Market Order to guarantee execution in the simulation, as limit orders may never fill if the "Paper" liquidity provider is lagging.
6. Resetting via the Web Portal
For those using the Thinkorswim Web interface (trade.thinkorswim.com), the reset procedure is located under the account settings icon. Tapping the "Paper Money" toggle often provides a "Reset Account" link directly next to the balance display. This is generally the fastest way to reset if the desktop application is currently undergoing a data sync or heavy processing.
7. Economics of the Paper Reset
To treat paper trading as a professional enterprise, you must recognize the Cost of Infinite Capital. The primary psychological trap of paper trading is the "Reset." If a trader knows they can simply click a button and get another 100,000 USD, they will take risks they would never take with real money. This creates "Bad Alpha"—profit generated through reckless size that cannot be replicated.
Professional strategists enforce a "Reset Penalty." If they blow their paper account, they force themselves to stay out of the market for three days. This simulates the real-world pain of capital impairment. By introducing a "Time Cost" to the reset, you align your paper trading behavior with the disciplined risk management required for live market survival.
8. Psychology of the "Clean Slate"
The final hurdle is Outcome Independence. A reset should not be used to "hide" from failures, but to reset the emotional baseline. If you are on a losing streak, your decision-making becomes clouded by the desire to "get back to even." This is a biological artifact of loss aversion. By resetting the account to a clean dollar amount, you remove the "anchor" of the previous loss, allowing your prefrontal cortex to return to objective execution.
In conclusion, resetting Thinkorswim position history is a mechanical task that provides a vital psychological reset. Whether you utilize the Global Reset context menu or the Adjust Cash precision tool, the objective remains the same: to ensure that your current trading activity is based on your system's edge rather than your emotional reaction to previous performance. Master the platform mechanics so you can focus entirely on the market mechanics. The clean slate is your most powerful tool for disciplined iterative growth.