You pulse it. it works as advertised. It takes some getting used to finding the float on a FEL and likewise, it takes some practice to pulse the 3 pt lever and pick up the implement. Theoretically, that is what is represented by the interior, shorter slot. Look at the lever again. You'll see that yes, the lever can go all the way up and all the way down. That's for full up or full down. But notice the slot also has a shorter slot. That represents the bump or pulse travel. I do it without much thought, just a fast, flicking action.
Mine has always worked dead on from day one. Others have reported that their unit needed a wee bit of adjusting on the stops in the smaller, 1/4" slot. Once you practice a bit, you notice your rear implement pulse upward or downward, just a bit, with each pulse. Practice on the driveway with a heavier, larger implement.
Again, one you master it and it is dialed in right, it works perfectly.