Setting the max heap size is always a trade off.
The larger it is, the less often you will fullGC, but the greater the pause wil lbe when it does.
Also you NEVER want tos et max heap so big you start swapping to disk at run-time.
As much as possible, if you can get away with it (you cant always) it good to let the system work these thinsg out.
I think however you may be putting the cart before the horse. You have not yet determiend why yo uare seeing full GCs during game-play. Most games dont because they only do two kidsn of allocations:
(a) Short lived objects that live in the eden space and never promote.
(b) Objects that exist for the entire level and only get freed up and GCd at level chnage.
Step one of performance tunign is always, always, always to profile your code. It might be that it is an object leak that is causing your entire problem.