Yes... you need the hitch centered on the bale chamber with the pin 5-7" behind the end of the chamber.
As for tension... you run a bit less. It helps to have someone climb up into the basket and check the weight on them as you go. I usually start with normal tension then back it down as bales advance up the chute. The weight of each extra bale in the chute compensates for the tension you remove from the chamber... Simply adjust the tension to achieve the desired bale weight. I run an accumulator but that aspect of it works the same as a basket..