I start all mine (50 this year) in Kraty containers with half-strength nutes. I use Maxigro for the first couple months (then Masterblend, Cal Nitrate, and Epsom salts) which works great. It comes dry with scoop, and you use a teaspoon per gallon for the first month or so (I actually start a quarter strength till they have a few sets of true leaves).
Overfeeding can cause "nute burn" (do an image search), and I've found that using a little less nutes doesn't seem to bother peppers.
You method is similar to Dutch buckets. Perlite holds more moisture than Hydroton, so yes, I think increasing the watering would be a good idea. But I'd also take it easy on the nutes at the same time. The leaves are more likely to droop if under watered, and yours don't look so bad in that regard, so consider that this could be nutrient burn.