If you check out a copy of Chapman's "Piloting, Seamanship and Small Boat Handling" aka "Chapman's" that's been a bible of nautical information for decades. There should still be a section on flag etiquette in it.
Often tradition is compromised for reality, i.e. where you have or can
rig the holders and how much effort you are willing to put into that.
Put "nautical flag etiquette" into your favorite search engine, and you'll get more immediate gratification.
But if you've never read Chapman's, ask you library to bring it in for you.