Must say to the second part of the question I like to collimate at night time, scope cooled and pointing near the zenith - but I greatly prefer the way out of focus method - create a doughnut on your monitor or eye piece and adjust your Bob's knobs or whatever until the ring in the doughnut is perfectly centred.
Each time I adjust collimation I tend to re centre the doughnut. Either method works - but I find the doughnut method (with a software tool if required) is a bit faster and a bit better for me.
Once the hole is centred and very circular I just then get the tightest focus I can and observe the star diffusion ring pattern. If you have a lot of upper air turbulence I find the doughnut method is far better to use!
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