Flag Etiquette Question

[Dockhead]

My boat was built with a short flagstaff incapable of carrying an ensign appropriate to the size of the boat. I got tired of the stupid little ensign and bought a bigger one. Since it wouldn't fit the flagstaff, I tied it to the backstay. And that looked stupid in its own way, drooping on the deck when there's no wind.

But then I saw a Finnish boat with the ensign hauled half way up the backstay -- and I thought it looked terrific! So I hauled my ensign up on a halyard, with a downhaul.

Is this permitted? I remember reading somewhere the permitted positions of the ensign on a single-masted yacht, but can't remember them, or where to find it.