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If you want maximum Sigils, though, should do it every 5 levels. You get to keep those, even after Transcendence (only other thing that lets you keep is current soul count).
And your character loses 20% of his level, not "5 levels". If you ascend at lvl 37, you'll be lvl 30.
To answer the question : ASAP. Your champion whatever you'll do is pretty much a easy destroyable thing. Gather the best stuff you can, but don't wait one more level, ascend when you can. So lvl 5, 10, 15, etc.
Best result for your NPC champion probably at level 9 with everything maxed. (Debatable if this gives it advantage over a level 5 all down to spawn system.)
Waiting to 10 puts you at very minor disadvantage. (loose out on a champ, emblem, quickest way to transend is get cap to 60 in shortest time i.e. do early ascensions.)
Another way to play is dont ascend until you have hit level cap, farm dungeons and souls to get or buy the best equipment and runes possible, upgrade all spells and then ascend. This will give you a much stronger champion and increase its stats considerably. (this is also why some people have been complaining about losing to OP champions) However any half decent player will already have figured out the system where you can kill any champion without being hit once.
My gamestyle is going to be a combination of the 2, rush through the game and ascend as soon as possible, and once I have collected all the emblems for all 3 gods then pick a god I will support, (going for void since they are the underdogs by far) and create those uber "OP" champions from then on.