Not sure about that selector valve but if it was a genuine fergie one you could feed your spools from one if the no1 ports. That way your arms would be locked in the raised position and they would be topped up everytime you dead ended a spool valve. This feature was designed to keep a ballast weight raised when using a 40 loader with each ram piped into a no1 port.
that would be the fully raised position ?
thats the 3 way valve it came with when new, dont think it does as you describe from what I recall from when we had a front loader fitted.
am I correct when I say when the 3 way valve is in external 2 position, stack pipe and control valve are taken out of the equation.