Good to see this being stated (and correctly so) without you guys being shot down - like what was happening a few yrs ago on this topic, re what happens with the bow/boat trim due to a high or low motor.
What about if you drop the jockey wheel/hitch all the way down?
It's always a good idea, IMHO, to get 'a guide' of the start point when the A/V plate is parallel to the hull. Measure up/down and advise.
Yours is obviously a tin boat, with full transom (no pod). What sort of external keel does it have? I-beam, angle section (at 45/45), or half-pipe?
A single donk tin boat with keel will never be able to run as high a donk as a glass boat.
As a start guide:
Tin boat - A/V plate half way up the keel extrusion and go up from there, one hole at a time. My last tin boat (6m pressed 5mm bottom with external keel), I was able to go up to 25-30mm above the hull (can't remember exactly) but used a Permatrim (to counteract ventilation from keel), keel-cut, and a good SS prop.
Then it's down to water tests and visual inspection of where it runs in the water, as suggested by those above.
Even with a good alloy prop, you will not be able to run as high a donk as with a good SS prop. As Moonlighter has suggested, extra cupping can help - but prop needs to be a tad small in pitch to start with.
If your prop is bent/damaged/dinged etc, you will also suffer more ventilation (and even cavitation) than without prop damage, and a damaged prop will give problems with a higher donk where as with a low/buried donk it may not show up.
Mostly always better, except where bad design/build/damage/fit-out to hull causes a boat to tend to plough/bury the nose when running down hill. Then it is better to have the donk lower than where it should be - or better still, sell the boat
.
Cheers
Brendon