This is an amazing setup i use it for cats, perch in the surf, and even bass sometimes. This will get finicky trout too. great setup. Great for finicky fish of any kind. Prob my #1 bait rig. I use a splitshot instead of a swivel tho.

This is a good setup and you can do it either way. Normally, you take up the slack and lock your spool. That way when they hit, you will see the rod tip bounce and you can set the hook. This is the way I normally fish this rig and I use circle hooks so that when the fish hits, I just start to reel and don't set the hook. I get more good hook ups this way. If you are in still water and using large bait, you can leave your spool open or freespooled and let the fish take line for a while to make sure they take the entire bait into their mouth. I really never do this.

The slip weight will let the fish take the bait into it's mouth and start swimming away without feeling the weight. Most fish will spit out a bait at the feel of a weight. I leave just a bit of slack 2-3 feet giving the fish time to gulp and turn. Too much slack and you'll end u tangled or in the brush Like dakota says use circle hooks and you'll get better hook ups and the fish get gut hooked.

reel in the slack. when the fish hits you can watch the rod tip dip.

the sinker allows the line to slide throgh so the fish does not feel the weight as quickly. you still have to be paying attention to the rod.