It depends...
It depends on the item. Some are best washed handle up, some best washed handle down. But I don't stop there.
Because of the varied configurations of modern silverware, flatware, and cutlery, I carefully measured and photographed each item and entered the dimensions and linked photo into a spreadsheet.
Then I diagrammed the silverware holder on each of my dishwashers, and using a simple algorithm calculated the best fit for any combination of silverware and dishwasher.
Prior to each loading, I put the silverware in a "staging area", that is, a special room of my home devoted to such matters. This has a computer terminal where I can simply check off each piece as it is passed to the transport tray. After printing out the proper basket arrangement, I simply match up each piece with its preferred location and orientation. Then I carefully place the loaded silverware basket in the dishwasher and after a similar spreadsheet linked arrangement of dishes, bowls, drinking glasses, wine glasses, cups, and mugs, it's ready to go.
At the end of each cycle I carefully inspect, photograph, and rate each item as to the efficacy of the washing process on a dual scale of A-Z,1-10. Letters for appearance, and numbers for bacteria count. Using this information I created another spreadsheet algorithm which in turn fine-tunes the arrangement of the items in the basket and dishwasher.
This all may sound complicated but it does help to while away the otherwise idle hours each evening. I did have to quit my job and disconnect my telephone line in order to devote the time needed to perform these simple tasks, but it's a small price to pay for cleanliness.