Where is the signal chain described in VE Pro when using it as a plugin in a sequencer. Does it matter if I insert an effect in VE or in the sequencer track? I am assuming everything runs on the host machine (no networked machines involved).
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Where to put the effects when using VE Pro in a sequencer
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It almost doesn't matter. Effects can be used on either the VE mixer or the DAW mixer.
However, on one machine, since VE is more or less a submixer, you might find more flexibility with being able to process VE's channel strips independently without having to set up a lot of complex bussing.
There is a danger of "redundancy" when using two mixers this way. One thing I need to watch while refining my workflow is to take care not to have too many critical mix elements spread over too many places at once. I suspect that in some cases it might be easier for me to just set the instruments and power panning in VE and then to use my DAW mixer templates which already contain my most often used effects in a more familiar workflow. I can see how VE can "take over" because it is capable of doing so many things very well.
But so much of it hinges on how one prefers to work.