Free will should be up at all times since psycho isn't exactly the tank class for sonny 2. It's probably the best defense/healing skill in the game anyways. Free will will cancel out some effects of tick tock.
Anyways, it's actually "electric storm" that he is doing, he shoots a yellow bolt at one of you and heals 20 health per turn afterwards for two turns.
Your losing hits every turn because of ticktock. >.>
If you use the skill build that Plokkey said, you should be able to beat him.
Load in destruction, salvation, wraith form, and dark echo, and electrical storm if you think you need it.
Put Varadux on defensive mode and attack. Use Slavation on Varadux and destruction on Roald about 5 turns in. Morph to wraith, use Dark Echo, then corruption. Wraith form gives you 50 focus. Corruption heals you for 15% of your max HP. Use Dark Infusion only when dark echo is loading. Always use Dark Echo before corruption (they take more damage and weaker to shadow attacks.)
At about 20k hits, the Barun gets Holy Scars allow you to deal a lot more damage (2-3X as much I think).
Just ignore the fact that you have Ticktock. Varadux will do his best to heal everyone.
You can't ignore tick tock at all though. If i were you (as in if I were psychological), I'd use free will on whoever has tick tock. Look, the key to the baron is not doing lots of damage. THe key is surviving the long battle and getting his focus down. Just equip traumatize twice and haunt once. THen equip 3 free wills (for yourself and your teammates when they get tick tock). The rest is up to you, but I'd personally take dark infusion, it prevents you from running out of focus (just hit yourself with dark infusion to regain focus). THe only time you should attack the enemy for anything other than traumatize or haunt is when he has holy scars, which is at about 40% health.