As long as there is fuel in the line it could go over the empire state building because the fuel on the down side will balance the fuel on the up side. Get a filter made for two stroke fuel. Walbro makes a nice one. Try to mount it vertical so it doesn’t trap a big bubble. Gif
At my track I have always seen and myself included the filter horizontal about 6 inches out of the carb. Are you saying it might be better vertical, say alone side the fuel tank where the fuel line is routed?