The drop is measured from an anchor, and the anchor is the real setting
The bot holds a reference price and buys when price falls the configured percentage below it. That much is obvious. What decides whether the bot fires once a week or fifteen times a day is when that anchor resets.
A 5% drop from last week's high is a market event. A 5% drop from a reference set four minutes ago is noise. The re-anchor timeout is the control that separates the two, and it is the setting worth spending backtests on.