I've found that the mag exploder isn't reliable no matter where the torpedo goes. I usually set it, but go for the impact explosion. Most everything sinks with two hits, 1/4 of the way forward of the stern and 1/4 of the way back from the bow, anyway.
Also the visual damage model is not related to the actual damage the target sustains. I've sunk lots of targets showing no visual damage at all! I've had some with a couple of huge holes just hang out forever and need another torpedo to sink them. Eye candy lies a lot!
In the real world, both the US and Germany concluded that their magnetic exploders were garbage and switched to an impact only strategy. Both ended up with under performing torpedoes with an explosive charge gauged to sink targets when exploded under the keel to break the back of the target. Both compensated by just shooting more torpedoes.
The US tried to compensate by introducing the Mark 16 torpedo with a larger explosive charge, but the Japanese ran out of fight before they could reach the field in quantity.
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