a few schools of thought on the issue of claying.
1. For the most dramatic hamon effect, the lines need to be VERY clearly defined and the clay needs to be of a thick consistency and the same thickness and consistency everywhere that it touches steel. Sharp vertical clean edges and clay about 1/8" thick and very "sticky" to the touch. Dry it for several days or even weeks to make sure that the material used is completely cured and dry. So that it will give the most resistance to heat in the heat treating process. This creates very dark, deep and clean Hamon lines.
2. Thin consistency of material, started heavier at the spine and drawn down to thinner as you get closer to the blade. Clay or substrate is almost watery and can be applied with a brush. This replicates the Japanese style. Where hamons are multilayer and not so clearly defined. The cloud styles of Hamon come to mind.
3. I call this "let 'er rip, tater chip": For me personally I don't use clay in these prescribed methods to create a hamon. I do it to create the effects of a soft spine and hard blade( differential heat treatment). Smeared chimney cement does this job very well. I put it on wet, let it sit in front of the forge to cure a little before going straight in the forge. Let 'er rip.
on a side note, W-2 is said to make a nice clean Hamon. I have not found that to be consistent.