The photo below is the external overflow box I built. The second siphon goes from the 20 gal to it, which has a pretty standard overflow which prohibits the water in the 20 gal from draining below the height of the overflow. Since the only thing connecting the 120 and the 20 is a siphon (no pump) once the overflow stops flowing, the 120 and the 20 level off. The water level in the 120 and the 20 will remain pretty much the same all the time, depending on the size of the siphon tube. Bigger is better at maintaining the level.
I have one problem that im still working on a solution for. Since the water in my tank is so oxygenated, tiny air bubbles in the water get trapped in the top of the main siphon, slowly filling it with air. I have a valve in the top of the siphon, and I suck the air out every couple of days for now. Im not sure how im going to solve this problem, but I will think of something. That is the reason most overflows are internal, to take water from the surface so that no air bubbles get trapped in the siphon. The downside being that most of the crap in the water is at the bottom of the tank.
Most of the tiny bubbles are coming from the fact that my return pipe from the filter isnt completely submerged yet. I will eventually be adding a spray bar I mad which will be underwater and should limit some of the tiny bubbles, but highly oxygenated water is nice in case you lose power for a while.
I determined the height of the overflow based on how many gallons my sump would hold, relative to the mass of water in both the 120 and the 20. If for any reason the pump should stop, the water level in the sump will not be enough to overflow.
Im working a lot of hours this week, and dont know when Ill be able to provide a detailed explanation of the whole thing, but it will be soon.

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