That's exactly what I was going to say. Most people go for pellets that are too big. If the fish can't swallow the pellet whole, there will always be waste when they try to chew it down.
Go for something like 1mm until fish hits 6", 2mm until they hit about 10-12", then you can switch to 3mm if you like.
Also, I find thera stinks more than other formulas. If you're smelling something like rotten fish, my guess would be that's exactly what you're smelling--uneaten bits of pellet that has FISH in it (actually it has a lot of krill and herring, in that order, and then depending on the formula can have other species of fish, squid, mussels, etc).
Holy Cow!
Ive been using the NLS 7mm floating formula for my pellet eaters over 2"! I do get massive amounts of "powdery" residue from gill/ mouth, but my bottom crew always cleans it up. My Oscars get visibly pissed off when I use my "smaller" 1mm or 3mm NLS sinking pellets.
I seriously doubt the "too big" pellet theory. ANY cichlid with a somewhat hardy appetite will definitely hit the larger sized pellet (brand and style being equal) before turning their attention to the smaller pellets!