There can be no translation of positional movement. Only Standing Room Setup works. A lot of Games still allow movement without physically moving though. (TrackPad, etc).
What you have described sounds opposite of the experience you should have.
3x Camera (Triangle Setup) for an decent result is also good advice to adhere to.
When setting up the tracking colors, choose a color that is not included with your surroundings. For instance, yellow was bad in my configs, too many lights.
Also, when setting up the Tracker Poses on (Calibration Mat) I find it best to run though the trackers by starting with the controller laying down.
An description would be:
On Calibration Mat, lay the controller down just above the 1 position with the buttons facing up. (Square/Triangle/X/Circle, etc).
Start Tracker Pose
Select Looks Good (If the cameras sees the controller light).
Next, simply tilt the controller upright onto the 1 position of the Calibration Mat.
When it completes, quickly grab the controller and keep it tilted until you have reached position 2 on the Calibration Mat.
Repeat this until position 5.
Now pick up the controller, it should have proper orientation without much "jitter".