You want your penis to sit as low in the hanger...as close to the hing as possible without actually touching the hing or bottom "teeth" of the hanger. Start by backing out the wing nuts all the way. Now, you can back out the bottom inner adjustment nuts. I'd suggest trying the adjustment nuts both evenly at first, out about 1/4". Snug the wing nuts down to tighten the bottom of the hanger, then place your wrapped penis inside and close the hanger. Squeeze all blood from the glans, then begin to tighten the top wingnut. The top teeth should be pretty close to meshed together...very little of the top bolt will be showing. You will know you have it (the hanger) tight enough when you can tighten the hanger down enough using only the top wingnut so that when you pull forward on the hanger via the S hook, the hanger seats itself on the shoulders of the penis behind the glans, and does not move forward any farther. That is the anchor point that you want the hanger to seat on.
Move the adjustment nuts in, or out accordingly in small increments until you get it dialed in.
Also, how much wrap are you using? I only use enough to go around my penis about 3 times. The main purpose of the wrap being to gather up the skin and prevent pinching, also to provide a semi firm surface for the hanger to grab onto. You dont need to pile on the wrap, but at the same time, you need at least a couple layers.