For the Protective Stop, the Bandwidth technique ideally uses a  SOC (Stop On Close) order type because we would like to close the position only if it closes below the lower band. The Stop On Close order type is an order that will only be executed at the end of the trading day (ex: 5 minutes before the end of the day).


When using a normal stop, if the price "dip" at the below the lower band during the day then we would stop out when if the stock move back up at the end of the day.


You can learn more about Order Type on Investopedia by clicking here.


What I can you do?

If your broker does not support Stop on Close order type you can: 

  • Make an order that will only be activated 5 minutes before the end of the market. Some broker platform, like Interactive Broker, will let you define at what time the order should be activated.
  • Make a normal STOP order.