The setup that works for me is #10 Berkley Transition or Florocarbon fishing line and very small hooks. I usually use treble hooks that are #16 to #20.
I like the small hooks that don't kill the minnow, and I usually use them as a quick strike rig. (two treble hooks tied in tandem)
I hook one treble hook in the cheek of the minnow, and the other just through the skin on the back. One good jerk should pull the hooks free. As for minnows, I like Rosie Reds, and Milwaukee Shiners, but Fatheads have worked also. You could also try spawn, mealworms, waxies until you find out what the trout on your particular lake like to eat.
As for depth, you'll need to experiment. Set one tipup a couple of feet off bottom and another a couple of feet down from the bottom of the ice. I then jig in the other holes that I have drilled. Swedish Pimples, jigging raps, etc.
Keep the hooks, small. IF you are going for very large trout, like on the great lakes - you could move up to a #10 or #12. Take your time, once the hooks are set you can get the fish in on very light line.
Here's a pic of a 29 1/2" Splake that I caught on a small lake. I caught it on #8 lb florocarbon and #20 treble hook.