Is it me or my timing retarded ???

[brickit]

The thmbnail is from a 2.5 TDI (AKE), the engine hot when test done. How do i advance the timing? should i aim for the blue line for optimum performance ??
I might be the reason for low rev performance...

[a8 tech]

Dynamically checking and adjusting commencement of injection
AKE ENGINE CODE

NoteThe commencement of injection must always be checked after renewing the toothed belt or loosening the injection pump bolts or toothed belt sprockets, and adjusted if necessary.
Read measured value block “function 08”, Display group 07, engine running at idling speed. Check readout in display zone 4 (coolant temperature). Specification: at least 85 °C
Do not continue the test until the coolant has reached the specified temperature.
Start basic setting “function 04”, Display group 04, engine running at idling speed.
Check display in display zone 4.
Specification: 100%
Observe display in display zone 2.
Specification: “retarded”
Check display in display zone 3.
Specification: 2° ATDC ± 2°
If specification is not obtained: Switch off ignition.
Remove toothed belt covers (front left and right).

Check toothed belt tension.

Tension toothed belt.
Slacken nut on belt tensioner

Turn Allen key anti-clockwise until markings are in line, then tighten nut.
Tightening torque: 36 Nm
If the toothed belt tension is OK (markings are in line):

Slacken camshaft sprocket securing bolts -(3 of them).
Apply ring spanner (22 mm) to pump shaft and turn slightly:
In direction A ⇒ to retard commencement of injection (anticlock wise)
In direction B ⇒ to advance commencement of injection (clockwise)
NoteDo NOT loosen nut in the middle of the injection pump sprocket. Otherwise this would alter the basic setting of the injection pump. The setting cannot be re-adjusted with workshop equipment.

Re-tighten camshaft sprocket securing bolts (3 of them)
Tightening torque: 20 Nm
Check commencement of injection again and compare with the specification
If commencement of injection is outside specified range:
Correct setting at injection pump sprocket (re-position toothed belt).
Install toothed belt cover. That may help but your graph indicates you are not at the correct temp when the reading was taken,i sugest you use the measured value blocks on your vag com and post the readings,also i would recommend that if adjustment is required to have it done by a professional and i would also replace the belt and tensioner.I would look at the colour of the exhaust smoke also as this will indicate a problem ie black smoke to much fuel insuffient air or white smoke retarded timing also there would be a delay when starting from cold.I suspect air mass issue or sticking turbo,disconnect the airmass so the fuelingair defaults and road test as this will indicate a performance issue as it should pull strong with the air mass disconnected.