No harm here with an external filter.
I have been using one going on 5 years.
Installed it when I put a DTT transmission in.
Still using the same Amsoil fluid also.
The thing to remember is it's a filter, and needs to be changed.
Once a year, $11 to change it out.
I cut the filter open to see how well it works.
Traps a lot of small particles that the filter in the pan misses.
And if the pan filter is clean, there is better flow through the transmission.
The Magnafine I use in my power steering return line.
Once again, change it yearly.
It unscrews to open it up an see what has been caught by the filter and the magnet.
You would be surprised whats in there.
I would never use one for a transmission as the amount of fluid to be filtered would be to much for a filter that small.
My truck is not babied in any way.
I tow and drag race with it.
4WD launches with 38. 5" tires.
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Brad