The historically accurate figure would be 450 yards, but whether this is implemented in SH4 I don't know (I guess it probably is, but then again, some stuff in SH4 is poorly researched - i.e. the USAAF Lancaster).
On real torpedoes: At 450 yards the detonator safety mechanisms released and the weapon would be live, also at this distance travelled, more advanced torpedoes such as the 14 and 18 would also enable some counter-mining devices to prevent sympathetic detonation from other torpedoes fired in a spread. It was this, along with the poorly-designed contact head of the detonator and the faulty depth control on early torpedoes that led to many duds and misses.
In theory a glancing angle should offer more chance of a detonation on an early US torpedo than a square-on hit, owing to the poor design of the Mark 3 detonating trigger. (I've found that on many occasions the opposite is true in SH4 however).
One other issue with torpedoes in SH4 is that an under the keel detonation if it happens in the right place, is almost always a great hit. A US study from 1943 determined that this was not actually the case in reality, when it was found that a loss of stability was invariably the cause for most sinkings, rather than flooding. This is not implemented in SH4, as you will often see ships that would be massively unstable, owing to hits, still merrily making their way along.
So, go for 450 yards minimum.
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