My only success so far has been when the pellet is on the eyelet of the hook.
To update my progress again, The best success so far has been with 2# flouro line with a shorter #10 hook with pellet as described above, no bobber. This is for RBT.
The trout will only take it when there is a small amount of feed thrown out with it. I see the line pulled by them, and I keep feeding the line out for a period of 1 to 5 minutes. They will then start to take off with it, and about 50% of the time they are hooked. The other times it is just spit out. Very sensitive.... the last one caught was spilling eggs.