Sitecore's default setting for Media.Resizing.Quality
is 95, i.e. 95% quality for JPEG compression. This is the most important setting —I would leave the other ones to their default value. In most cases this will actually increase file size, so I recommend lowering that to a more reasonable value in the 70-85 range (80 being the one I generally go with):
<?xml version="1.0" encoding="UTF-8"?>
<configuration xmlns:set="http://www.sitecore.net/xmlconfig/set/">
<sitecore>
<settings>
<setting name="Media.Resizing.Quality" set:value="80" />
</settings>
</sitecore>
</configuration>
Note that this only affects images resized with query parameters, such as those generated by the Sitecore MVC helper:
@Html.Sitecore().Field("MyImage", item)