I also have a 2017 LG OLED and madVR's tone mapping can improve HDR but it is impossible to turn off LG's tone mapping, if they end up interacting it can cause issues (clipping is the most obvious).
I use ~600 nits (this is close to but not quite a max brightness), and you do need to tick "output video in HDR" if you want the TV to go into HDR mode. If you do see clipping you can turn down madVR's target nits.
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