diff --git a/docs/strategy-advanced.md b/docs/strategy-advanced.md
index 731930020..dc1e2831a 100644
--- a/docs/strategy-advanced.md
+++ b/docs/strategy-advanced.md
@@ -619,7 +619,7 @@ It is possible to manage your risk by reducing or increasing stake amount when p
 class AwesomeStrategy(IStrategy):
     def custom_stake_amount(self, pair: str, current_time: datetime, current_rate: float,
                             proposed_stake: float, min_stake: float, max_stake: float,
-                            **kwargs) -> float:
+                            side: str, **kwargs) -> float:
 
         dataframe, _ = self.dp.get_analyzed_dataframe(pair=pair, timeframe=self.timeframe)
         current_candle = dataframe.iloc[-1].squeeze()
diff --git a/freqtrade/freqtradebot.py b/freqtrade/freqtradebot.py
index 51c8b3ad9..5e0508287 100644
--- a/freqtrade/freqtradebot.py
+++ b/freqtrade/freqtradebot.py
@@ -502,7 +502,9 @@ class FreqtradeBot(LoggingMixin):
                                                  default_retval=stake_amount)(
                 pair=pair, current_time=datetime.now(timezone.utc),
                 current_rate=enter_limit_requested, proposed_stake=stake_amount,
-                min_stake=min_stake_amount, max_stake=max_stake_amount)
+                min_stake=min_stake_amount, max_stake=max_stake_amount, side='long')
+        # TODO-lev: Add non-hardcoded "side" parameter
+
         stake_amount = self.wallets._validate_stake_amount(pair, stake_amount, min_stake_amount)
 
         if not stake_amount:
diff --git a/freqtrade/optimize/backtesting.py b/freqtrade/optimize/backtesting.py
index 09248ae09..4890c20aa 100644
--- a/freqtrade/optimize/backtesting.py
+++ b/freqtrade/optimize/backtesting.py
@@ -429,7 +429,8 @@ class Backtesting:
         stake_amount = strategy_safe_wrapper(self.strategy.custom_stake_amount,
                                              default_retval=stake_amount)(
             pair=pair, current_time=row[DATE_IDX].to_pydatetime(), current_rate=row[OPEN_IDX],
-            proposed_stake=stake_amount, min_stake=min_stake_amount, max_stake=max_stake_amount)
+            proposed_stake=stake_amount, min_stake=min_stake_amount, max_stake=max_stake_amount,
+            side=direction)
         stake_amount = self.wallets._validate_stake_amount(pair, stake_amount, min_stake_amount)
 
         if not stake_amount:
diff --git a/freqtrade/strategy/interface.py b/freqtrade/strategy/interface.py
index 2dfd62185..a22a0b6b8 100644
--- a/freqtrade/strategy/interface.py
+++ b/freqtrade/strategy/interface.py
@@ -366,10 +366,9 @@ class IStrategy(ABC, HyperStrategyMixin):
         """
         return None
 
-    # TODO-lev: add side
     def custom_stake_amount(self, pair: str, current_time: datetime, current_rate: float,
                             proposed_stake: float, min_stake: float, max_stake: float,
-                            **kwargs) -> float:
+                            side: str, **kwargs) -> float:
         """
         Customize stake size for each new trade.
 
@@ -379,6 +378,7 @@ class IStrategy(ABC, HyperStrategyMixin):
         :param proposed_stake: A stake amount proposed by the bot.
         :param min_stake: Minimal stake size allowed by exchange.
         :param max_stake: Balance available for trading.
+        :param side: 'long' or 'short' - indicating the direction of the proposed trade
         :return: A stake size, which is between min_stake and max_stake.
         """
         return proposed_stake
diff --git a/freqtrade/templates/subtemplates/strategy_methods_advanced.j2 b/freqtrade/templates/subtemplates/strategy_methods_advanced.j2
index 1edf77f10..1f064f88e 100644
--- a/freqtrade/templates/subtemplates/strategy_methods_advanced.j2
+++ b/freqtrade/templates/subtemplates/strategy_methods_advanced.j2
@@ -12,12 +12,11 @@ def bot_loop_start(self, **kwargs) -> None:
     """
     pass
 
-def custom_stake_amount(self, pair: str, current_time: 'datetime', current_rate: float,
+def custom_stake_amount(self, pair: str, current_time: datetime, current_rate: float,
                         proposed_stake: float, min_stake: float, max_stake: float,
-                        **kwargs) -> float:
+                        side: str, **kwargs) -> float:
     """
-    Customize stake size for each new trade. This method is not called when edge module is
-    enabled.
+    Customize stake size for each new trade.
 
     :param pair: Pair that's currently analyzed
     :param current_time: datetime object, containing the current datetime
@@ -25,6 +24,7 @@ def custom_stake_amount(self, pair: str, current_time: 'datetime', current_rate:
     :param proposed_stake: A stake amount proposed by the bot.
     :param min_stake: Minimal stake size allowed by exchange.
     :param max_stake: Balance available for trading.
+    :param side: 'long' or 'short' - indicating the direction of the proposed trade
     :return: A stake size, which is between min_stake and max_stake.
     """
     return proposed_stake