Draw back in this sentence is used literally, not figuratively, and it means 'pull back'. I'm still not sure what the discussion point is, though.
I think you're looking into this far too much 源尘小道人. There's nothing about the quote that mentions limiting how far you draw the arrow back, which would necessary for it to make the metaphor you described.
The sentence is probably literal, as Su Ki mentioned, in which case it's just describing basic physics. If it's a metaphor we'd need to see the context to figure out what it's implying.
I heard some proverbs like the statement you said. That might indicate if you want to jump higher, you must squat down lower to brew more energy for the jump (figuratively)