diff --git a/freqtrade/strategy/interface.py b/freqtrade/strategy/interface.py
index 7bd6a9ac5..27bc8280e 100644
--- a/freqtrade/strategy/interface.py
+++ b/freqtrade/strategy/interface.py
@@ -389,9 +389,11 @@ class IStrategy(ABC):
                 trade.adjust_stop_loss(high or current_rate, stop_loss_value)
 
         # evaluate if the stoploss was hit if stoploss is not on exchange
+        # in Dry-Run, this handles stoploss logic as well, as the logic will not be different to
+        # regular stoploss handling.
         if ((self.stoploss is not None) and
             (trade.stop_loss >= current_rate) and
-                (not self.order_types.get('stoploss_on_exchange'))):
+                (not self.order_types.get('stoploss_on_exchange') or self.config['dry_run'])):
 
             sell_type = SellType.STOP_LOSS
 
diff --git a/tests/test_freqtradebot.py b/tests/test_freqtradebot.py
index 5a4820f2f..6c6bd1753 100644
--- a/tests/test_freqtradebot.py
+++ b/tests/test_freqtradebot.py
@@ -1318,6 +1318,14 @@ def test_handle_stoploss_on_exchange_trailing(mocker, default_conf, fee, caplog,
                                                 rate=0.00002344 * 0.95 * 0.99,
                                                 stop_price=0.00002344 * 0.95)
 
+    # price fell below stoploss, so dry-run sells trade.
+    mocker.patch('freqtrade.exchange.Exchange.fetch_ticker', MagicMock(return_value={
+        'bid': 0.00002144,
+        'ask': 0.00002146,
+        'last': 0.00002144
+    }))
+    assert freqtrade.handle_trade(trade) is True
+
 
 def test_handle_stoploss_on_exchange_trailing_error(mocker, default_conf, fee, caplog,
                                                     limit_buy_order, limit_sell_order) -> None: