We want to control the display temperature, so having it in a flowing area near where it enters the sump is a good spot.
Make sure it is submerged, the heater is in the same area but not too close, as well as away from any other heat or cooling sources and out of direct light.
(I had mine in a seperate area and a fan over the probe area. I shut off the return pump for a while and the heater thought the water was cooler than it was)
Redundant systems with multiple probes is highly recomended.