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As Reza's reference notes, best practice might be based on "normal" volume with some overage allowance.
Reza's reference also describes on-going monitoring. Which is one of the issues with this "best practice" approach, insuring it's accurately set as your network traffic evolves or changes.
The other issue with this feature, even when "correctly" set, and even when there's "bad" traffic that you want to suppress, this feature suppresses the "good" traffic along with the "bad" traffic.
So, because of the last issue, another approach is to set the threshold such that if there is a storm, devices can successfully deal with the storm load, or they might still be managed and the storm mitigated manually. For this approach, threshold might be set much, much higher than "normal". Some equipment might not even be degraded by storm traffic and wouldn't require a threshold to be set at all.
BTW, another approach you might want to look at is Control Plane Policing.
