Ok, this time I have an arrow in it, but outside!

Sorry about the sun in the background, didn't realize that until I got inside to look at the pic, but you can see the anchor point. Here I've attached the release directly to the string under the string loop.

My peep would have to be moved down a good two inches with the loop out, but as you can see, the anchor point isn't as far back.

I'm a bit confused about how you say to hold the bow. I know I shouldn't grip it hard while shooting, so I try to have my hand relaxed as I shoot, but after that, I don't know what I should do.