diff --git a/apps/backtester/run.py b/apps/backtester/run.py
index 9b0aac7..a139e13 100644
--- a/apps/backtester/run.py
+++ b/apps/backtester/run.py
@@ -269,15 +269,17 @@ class BacktestRunner:
             if self.config.risk.backtest_mode == "research":
                 self._kill_switch_cooldown_remaining = self.config.risk.kill_switch_cooldown_days
 
-        # Research mode: reset kill switch after cooldown + recovery
+        # Research mode: reset kill switch after cooldown expires
+        # Reset peak_equity to current equity so drawdown restarts from 0
         if (
             self._kill_switch_triggered
             and self.config.risk.backtest_mode == "research"
             and self._kill_switch_cooldown_remaining <= 0
-            and drawdown_pct < _KILL_SWITCH_DRAWDOWN_PCT
         ):
             self._kill_switch_triggered = False
-            logger.info("kill_switch_reset", date=str(date), drawdown_pct=drawdown_pct)
+            self._peak_equity = self._equity
+            drawdown_pct = 0.0
+            logger.info("kill_switch_reset", date=str(date))
 
         # --- ENTRIES (only if kill switch not triggered) ---
         if not self._kill_switch_triggered:
diff --git a/configs/backtest/defaults.json b/configs/backtest/defaults.json
index 373e8da..b2531a3 100644
--- a/configs/backtest/defaults.json
+++ b/configs/backtest/defaults.json
@@ -27,7 +27,7 @@
     "stop_atr_multiplier": 3.0,
     "backtest_mode": "research",
     "kill_switch_cooldown_days": 20,
-    "veto_oneoff_penalty": 0.5,
+    "veto_oneoff_penalty": 0.7,
     "veto_parse_confidence_min": 0.4,
     "veto_unknown_direction": true,
     "veto_bearish_direction": true