When I am setting up in the shack I drill a second hole tight to the hole I am fishing out of and place the bottom of the transducer even with the bottom of the ice.
If I am hole hoping a lot of the times my transducer will be any from the middle of the hole to a few inches above the bottom of the ice, I try to get away with using the least amount of cable but still being able to see my jig while bouncing around.
This is right out of the MarCum manual
Using the Ice Transducer – The weighted dual-beam transducer suspends in the ice hole from the ice arm. The self-aligning transducer hangs like a plumb bob and always transmits and receives a direct signal. The transducer should be positioned just below the water line, except when the ice begins to get thick (more than 24 inches). Once the ice gets thicker than 24 inches, ringing off the side of the ice hole can occur. This is usually displayed as a solid band of light between 2 and 3 feet on the display dial. If this occurs, lower the transducer to the bottom of the ice hole. This should eliminate most display clutter.