there should be no slack in the chain at all.
the tensioner is mainly actuated by oil pressure and there's a ratchet stepped stopper inside which keeps the tensioner snug against the chain within 1mm whenever the engines off. the ratchet tensioner is very similar to the rear drum brakes self adjusting ratchet.
afew possibilities why the chains loose:
blocked oil feed - old sludge from poor service blocking the tiny oil port is the most common cause why the tensioner doesn't work leading to constant noise. the ratchet stopper inside relies on the oil pushing the tensioner against the chain far as possible so that the ratchet can click to the nearest step and keep the tensioner snug.
to test if the oil was blocked and the ratchet still had some travel available:
1- first push the tensioner shoe in against the ratchet to keep it in place with one hand,
2- with a spanner on the inlet cam, apply some counter-clockwise pressure just enough to keep the chain at the top & RH taught and the chain on the tensioner side loose,
3- now release the tensioner and it should normally spring back out against the chain and then the ratchet should stop it being pushed in any further than before. this means the oil wasn't tensioning it.
if otherwise it doesn't spring out any further, the ratchet inside could either be abit seized (rare) or actually at the end of travel which means the path of the chain around all the sprockets are too long to tension (stretched chain or excess machining).
when you remove the upper tensioner to disassemble/inspect, poke the tiny oil feed holes with equal size wire/drill bit to clear any sludge.
before fitting tensioner shoe, rewind the ratchet thing inside clockwise all the way in till it locks in place.
gently slide the tensioner shoe in the hole fully and without releasing the ratchet.
bolt tensioner in the head then give the shoe a nudge inward to release the ratchet and it should spring up against the chain.
worn tensioner shoe - inspect the tensioner shoe and if the worn groove is deep or down to metal, replace it
stretched chain - not often the chain could be stretched if it's very high mileage.
deck or head skimmed too much - if the head or deck has been machined too far, the chains path around the cams/idler sprocket will be shorter than the chain and the tensioner wouldn't have enough travel to keep it tight.