Ditto on cut side up in order to save seeds. You get some fall-though of seeds between the racks anyway, but this minimizes it, so less chance of mix-ups if you're dehydrating more than one type of chile at the same time. Again, low and slow so the seeds remain viable. The relative humidity in your area will make a huge difference - sometimes they dry fairly quickly, other times it seems like they take a whole week. Just gotta go with it. Get more racks if you find yourself with more pods than fit your current setup.
And another thought….. I know you may have only snapped a pic of that one tray to show us what you were doing, but since another member bought a similar dehydrator that didn't come with an instruction manual i wanted to point this one thing out. You should never run that dehydrator with less than 4 trays, for safety reasons as well as for good air circulation. It says this in the instruction booklet, but you might not know it if you didn't receive the booklet.Â