Hi
If you want to be absolutely sure, you need to remove the shock. Then move the swingarm up and down until you find the tightest spot and go from there.
I don't have any experience with the bike you have, but my KTM EXC needs the chain very loose. It is almost silly too look at, but that is just how it is.
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Yamaha XT600E '01, Honda XR400 '03, Yamaha XT550 '83
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