I think this is quite a well established way of lunging - Laura Bechtolsheimer starts her youngsters in it.
OP, actually the looser they are, the more likely the horse is to stretch down. If they are too tight, it makes them curl up too much.
im not sure what your point is? and actually find you quite rude. i have no idea who you are, and you dont know who i am, so i am not sure you can make the assumption i don't know what im talking about? or any other poster? but you may know something i dont about the others. i would rather teach my horse to stretch into a elastic contact than use a gadget that could cause problems if something happened.
And yet again HHO excels itself in answering questions that weren't asked
OP - this is a well established and very useful way of lungeing that is used by many people who actually know what they're talking about
The draw reins don't need to be tight and, like you, I usually attach them to the noseband rather than the bit.
I find it takes some horses a few sessions to really 'get it' and start to work in the ideal way.
Keep at it - and best of luck
You are, of course, entitled to your opinion however the OP asked if the draw reins were fitted correctly or if they needed to be tighter. She did not ask if everyone liked the use of them, or thought it was cruel or dangerous.