My loadout is:
For Type II, steam torps only.
For Type VII and IX, electric torps loaded in the stern tube(s) for use against warships. More electric torp(s) in the internal reload box for the stern tubes. Steam torps only in the forward tubes and in the external (deck) reload boxes, for use against merchants.
Historically the electric torps required constant maintenance by the crew, while the steam torps did not. Thus electric torps could not be used in the external deck compartments, because the crew couldn't work on them in there.
The faster speed of the steam torps does compensate for the bubble trail, most often merchants aren't quick enough to get out of the way before being hit. I always use the steam torps at medium speed (40 kts) - the most common setting used historically, makes calculations easier, and gives the torpedo extra range so I don't need to get so close to the convoy.
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