Well the main purpose of the bypass valve is if the filter is submerged, you wont have to worry about water sucking into your motor, otherwise known as "hydro-locking" it, so you want to avoid putting it near the filter. Put the bypass valve midway on the cold air intake (cut it in half dead center before your MAF sensor (if any).
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Apexi SAFC-2 • MSD Digital Ignition 2 • Garret T-3 Super 60 Turbo • Custom Catback (2.5) • Magnecor Kv85 8.5mm Competition Ignition Wires • Modified Accelerator Cable • Custom Ground System • REAL ECU • 440cc Injectors • Turbo XS Manual Boost Controller • ROSS Forged Pistons (8.5:1 Compression)