lets be honest, no one uses a dial indicator to verify end play.
The idea of "rule of thumb" on how far to back it off can't apply because thread pitch differences in cars and trucks.A Chevette uses a fine thread while ford trucks may not. So a 1/4 turn is not the same now is it.
All that being said you should follow Wayne's advice. I think that if you error on the side of loose you are better off. His way is definitely not too tight. Too tight will overheat the bearing, seize the axle or in some cases destroy the spindle and allow the wheel to come off.
If you do it Wayne's way the very worst that could happen is a little premature tire wear.
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