The rest should be as far forward as you can get it, and the contact point on the side plate should be directly above the deep point of the grip. That's where you find the best stability, according to Dan Quillian. He set his personal bows up that way, and I do too!
Here's a picture of a crude but effective alteration that I did on one of Dan's later bows, using his methods.
You can see from the wear on the side plate that the contact point is above the deep point of the grip, and there's a little leather square glued to the most forward point on the shelf.
While Dan could still shoot, he was working on a design that actually put the rest out in front of the back of the bow, by building it out with putty. It looked weird, and he knew it wasn't marketable, but he claimed that it shot better that way. He loved to tinker, and would take a bow to the belt sander in a heartbeat.