Short answer: I use 25% for compression.
Long answer:
I use the compression of the actual shock instead. For me, it's easier. Most instructions I've seen for this method recommend 30% compression but I cheat slightly to 25% because of the short travel. Frankly, the difference between 25% and 30% is not really much on such a short travel, but that's my sweet spot.
However you do it, any adjustable aftermarket shock is a massive upgrade over stock but there's no perfect setting with the Bobber. The travel is very limited and even the best aftermarket units cannot change that. I wouldn't get overly bogged down by any one specific recommendation or number. It's more a question of what bothers you the least, the type of roads you ride on, and your riding style.
Too much preload gives the unit more travel to absorb bumps, which allows you to use a softer dampening, but it also has less travel to drop for a divot and will be rougher in that direction. Too little preload and the opposite is true. Same for the dampening. Your choice in the end comes down to stiffer/never bottoms out, soft/bottoms out often, or somewhere balanced in between that can handle most but occasionally bottoms out on larger bumps.
I would recommend you set the preload somewhere in that 25-30% range (18-21mm using your method, an insignificant difference), then test ride and adjust the dampening to your taste. That's where you'll find the bigger variability and customization.