PipsCrusher
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Prop Firm Trading3 min read

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:

●Your lot size is automatically halved for all new trades
●This reduced sizing stays in effect for the rest of the trading day
●It resets to normal the next trading day (midnight UTC)

Example:

●Your firm's daily loss limit: 5%
●Safety buffer applies: 4.5% effective limit
●70% threshold: When you've lost 3.15% of your account today
●At that point, all new trades use half your normal lot size

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).