diff --git a/freqtrade/optimize/backtesting.py b/freqtrade/optimize/backtesting.py
index 31e133515..a701b04e4 100644
--- a/freqtrade/optimize/backtesting.py
+++ b/freqtrade/optimize/backtesting.py
@@ -203,6 +203,8 @@ class Backtesting:
         # since a "perfect" stoploss-exit is assumed anyway
         # And the regular "stoploss" function would not apply to that case
         self.strategy.order_types['stoploss_on_exchange'] = False
+        # Update can_short flag
+        self._can_short = self.trading_mode != TradingMode.SPOT and strategy.can_short
 
         self.strategy.ft_bot_start()