It is personal preference.
A sight that is closer will be more forgiving to pin movement on the target but won't be as precise.
A pin further out will be touchy but more precise.
You can move the pins in or out to match the size of your peep for better alignment with the housing.
Increase the distance from the peep,the pin gap gets wider.Closer naturally the pins get closer together.
Too far out and weight could become an issue so as you can see,it is a very personal choice.