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Its really tormenting

Good day Every Body,

I have a heart aching issue, my site (nightwatchng.com) amassed a number carnivorous backlinks, I have lost rankings, i studied my search traffic and discovered that I have been hit by Google Penguin Algorithm Penalty, I was forced to believe that those backlinks were built to my site on purpose just so my rankings will drop, I know the importance of link building and thats why i follow the white hat technique.

Now the big question is, IF I DISAVOW THESE TERRIBLE LINKS FROM GOOGLE SEARCH, WILL MY MOZ DOMAIN AUTHORITY DROP FROM WHAT IT CURRENTLY HAS??

I also want to know if the Algorithm Penalty will affect the subdomain (news nightwatchng.com) of my site?