Not having any experience with this setup as mine is a thermonitor stuck through the top of my tun.
But my .02 cents worth would be.
Figure out what my smallest grain I would mash in the Tun would be.
Then calculate max capacity for your tun, and based upon the research I have done about 2# of grain per Gallon, so your setup should hold 20#.
Measure the inside of the mash tun.
Then calculate what the 1/2 way point of my smallest batch will be.
SB = Smallest Batch in # (Lets say 8lb Grain Bill)
MT = Mash Tun capicaity (10Gallon at 2# per Gallon is 20# Capacity)
MM= Mash tun measurement (18" from bottom to top)
Top = Estimated top of SB in Tun
8/20 x 18" = 7.2" (Then I would take half or 3.6" from the bottom)
I do not believe it is important where as long as it is not right on the bottom or right on the top.