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For this step, it really important to not run the chain through the rear derailleur. Next, position the chain on the chainring’s teeth at the tightest spot you could connect the chain. Now add one whole inner and outer link, so that you have approximately one extra inch of slack in the chain. That will be the optimal length for most systems.
Measure a structural chain (for chandeliers or other decorative items) by taking a tape measure from one end of the chain to the other. If the chain is longer than your tape measure, you can find the length with individual link measures.
Measure from one end of an individual link to the other end of that same link. Now count the links in the chain, and multiply that half of the chain length; this is because the links overlap, so this shortens the overall possible length. Also measure the width of the link's individual side to find its diameter.
This can be used to determine the tensile strength of the chain if you know the material it is made of.