You can go ahead and put that INITIAL BLADE POSITION>OUTSIDE, or it will leave a little J. in your design. But you should be looking for Blade offset. Blade offset is ZERO on Graphtecs. Which Cutting software are you using? Are you running the cutting on Windows or a Mac? If Windows, that cutter has a Graphtec cutting controller that you can make changes right from your computer. Before wasting vinyl and cutting text, use the TEST feature right from the vinyl cutter, and your triangle and square should be perfect.
https://www.graphtecamerica.com/cp-downloads-fc8600 Under drivers is Win Controller V.OPS67.. Cutter must be ready to cut when using this operation. User manual is also on this page. This is the correct way to set the blade depth on any vinyl cutter.
To start with, you should set your blade depth correctly, by taking the blade holder out of the machine, and firmly cut across a piece of scrap vinyl, you will be cutting. You should only be cutting the vinyl and barely a mark on wax paper backing, Adjust blade to get there, Then put the blade holder back in machine, and use the force of the machine to get there, same results, only cutting the vinyl and barely a mark in wax paper backing. You should barely see and feel the blade tip out of the blade holder. Regular sign vinyl is only 2-3 mil thick. You only cut with the very tip of the blade. When you think the blade is so far in the blade holder, that you think it would not even cut, that is probably correct.