diff --git a/docs/bot-basics.md b/docs/bot-basics.md
index a44b611f3..30dc70d02 100644
--- a/docs/bot-basics.md
+++ b/docs/bot-basics.md
@@ -57,6 +57,8 @@ This loop will be repeated again and again until the bot is stopped.
 * Calculate indicators (calls `populate_indicators()` once per pair).
 * Calculate entry / exit signals (calls `populate_entry_trend()` and `populate_exit_trend()` once per pair).
 * Loops per candle simulating entry and exit points.
+  * Check for Order timeouts, either via the `unfilledtimeout` configuration, or via `check_entry_timeout()` / `check_exit_timeout()` strategy callbacks.
+  * Check for trade entry signals (`enter_long` / `enter_short` columns).
   * Confirm trade entry / exits (calls `confirm_trade_entry()` and `confirm_trade_exit()` if implemented in the strategy).
   * Call `custom_entry_price()` (if implemented in the strategy) to determine entry price (Prices are moved to be within the opening candle).
   * In Margin and Futures mode, `leverage()` strategy callback is called to determine the desired leverage.
@@ -64,7 +66,6 @@ This loop will be repeated again and again until the bot is stopped.
   * Check position adjustments for open trades if enabled and call `adjust_trade_position()` to determine if an additional order is requested.
   * Call `custom_stoploss()` and `custom_exit()` to find custom exit points.
   * For exits based on exit-signal and custom-exit: Call `custom_exit_price()` to determine exit price (Prices are moved to be within the closing candle).
-  * Check for Order timeouts, either via the `unfilledtimeout` configuration, or via `check_entry_timeout()` / `check_exit_timeout()` strategy callbacks.
 * Generate backtest report output
 
 !!! Note
diff --git a/freqtrade/optimize/backtesting.py b/freqtrade/optimize/backtesting.py
index 808e94bad..b63c404fc 100644
--- a/freqtrade/optimize/backtesting.py
+++ b/freqtrade/optimize/backtesting.py
@@ -938,7 +938,15 @@ class Backtesting:
                 indexes[pair] = row_index
                 self.dataprovider._set_dataframe_max_index(row_index)
 
-                # 1. Process buys.
+                for t in list(open_trades[pair]):
+                    # 1. Cancel expired buy/sell orders.
+                    if self.check_order_cancel(t, current_time):
+                        # Close trade due to buy timeout expiration.
+                        open_trade_count -= 1
+                        open_trades[pair].remove(t)
+                        self.wallets.update()
+
+                # 2. Process buys.
                 # without positionstacking, we can only have one open trade per pair.
                 # max_open_trades must be respected
                 # don't open on the last row
@@ -961,7 +969,7 @@ class Backtesting:
                         open_trades[pair].append(trade)
 
                 for trade in list(open_trades[pair]):
-                    # 2. Process entry orders.
+                    # 3. Process entry orders.
                     order = trade.select_order(trade.enter_side, is_open=True)
                     if order and self._get_order_filled(order.price, row):
                         order.close_bt_order(current_time)
@@ -969,11 +977,11 @@ class Backtesting:
                         LocalTrade.add_bt_trade(trade)
                         self.wallets.update()
 
-                    # 3. Create sell orders (if any)
+                    # 4. Create sell orders (if any)
                     if not trade.open_order_id:
                         self._get_sell_trade_entry(trade, row)  # Place sell order if necessary
 
-                    # 4. Process sell orders.
+                    # 5. Process sell orders.
                     order = trade.select_order(trade.exit_side, is_open=True)
                     if order and self._get_order_filled(order.price, row):
                         trade.open_order_id = None
@@ -988,13 +996,6 @@ class Backtesting:
                         self.wallets.update()
                         self.run_protections(enable_protections, pair, current_time)
 
-                    # 5. Cancel expired buy/sell orders.
-                    if self.check_order_cancel(trade, current_time):
-                        # Close trade due to buy timeout expiration.
-                        open_trade_count -= 1
-                        open_trades[pair].remove(trade)
-                        self.wallets.update()
-
             # Move time one configured time_interval ahead.
             self.progress.increment()
             current_time += timedelta(minutes=self.timeframe_min)