One thing the no-peep has taught me is to listen to my body and set the no-peep to what it wants. Once I'm at full draw with my eyes closed, I let the bow settle into the spot that is tension free and totally comfortable. This is what I set my no-peep to.

I want to release every arrow from this position. If the target doesn't happen to line up to it, my choices are:

1- Raise or lower my bow arm to adjust the sight pin. This sounds like what you may be doing in your description above. Problem is, it takes you out of the position your body wants to be and knows it should be in. So, you consciously try to aim and hold the pin on target by keeping your bow arm elevated/lowered, while you're subconscious trys to put you back into the position it wants to be in. Havoc and inconsistency ensue.

2- Bend up or down from the waist. This keeps your upper body shooting platform where it wants to be, and allows you to lock in your most consistent form. Just like you need to bend from the waist when shooting from a treestand to ensure accurate sighting, you must do so from level ground as well to targets that vary up or down from our natural full draw position.