Drawdown Recovery Mode Explained
Learn how PipsCrusher automatically reduces your position size when approaching daily loss limits during a prop firm challenge.
When you're close to hitting your daily loss limit during a prop firm challenge, the last thing you want is a full-sized trade pushing you into a breach. Drawdown Recovery Mode automatically reduces your lot size to protect your challenge account.
How It Works
Drawdown Recovery Mode activates when your daily P&L loss reaches 70% of the safety-buffered daily loss limit. When triggered:
Example:
Why 70%?
The 70% threshold gives you enough room to keep trading while significantly reducing the risk of a breach. At half lot size, even two more losing trades are unlikely to push you past the safety-buffered limit.
Does It Affect Open Trades?
No. Drawdown Recovery Mode only affects new trade intents. Any trades already open continue with their original lot size and stop-loss levels.
Is It Configurable?
The 70% activation threshold is set at the platform level and applies uniformly to all challenges. The lot size reduction is always 50% (halved).
Notifications
When Drawdown Recovery Mode activates, you receive a Telegram notification (if connected) warning you that lot sizes have been reduced. You also receive notifications if trading is blocked entirely (at 95%+ of the daily limit).