Setting the hook can be a trial and error process.Nine times out of ten I'm setting it as soon as I feel a bite,ofcourse there usually is a moment of hesitation to get my slack out.Sometimes I may find that I need to set the hook really quick and I may not alow much slack to get in my line other times,when the fish are really biting and holding on I may have enough time to get the slack out.On the other hand I may need to let them take it good.Usually a big fish is going to suck up anything you are presenting and not play around with it.The smaller ones are the ones tapping and running fast with it.Another thing you mentioned about the hook you are using,this is only my opinion,I like a 3/0 worm hook with an off-set shank on a worm.Not a wide gap.Good Luck!