Airdrie, you followed directions installing so I'm sure it's working fine. Here's a quote out of a 2009 FLHTCUSE4 SERVICE SUPPLEMENT for the stock HD oil cooler that comes on the CVO touring model (should work the same for softail model add on's I would think) on oil flow & thermostat operation.
The flow of oil to the cooler is controlled by a thermostat in an
adapter located between the oil filter and the filter mount.
Under pressure from the crankcase, engine oil flows from the
crankcase oil filter mount into a passage in the oil cooler
adapter.The thermostat is located across the supply and return
ports of the adapter and consists of a temperature sensitive
element compressed between a spring and a threaded plug.
When the engine oil temperature is below 200° F (93° C), an
open thermostat allows the largest percentage of engine oil in
the supply port to pass through to the return port and then to
the oil filter. A smaller percentage flows through the oil cooler.
When oil temperature exceeds 200° F (93° C), the thermostat
closes and all the oil flows through the supply hose to the oil
cooler. The oil circulates through the finned tubes of the cooler to dissipate
heat and returns to the oil cooler adapter through a
return hose. The oil is then filtered before returning to the crankcase.
NOTE:
Regardless of whether the thermostat is closed or open, oil is
always pressurized in the oil cooler adapter, the oil cooler
supply hose, the oil cooler and the oil return hose.
At every service interval, the oil cooler fins should be checked
for dirt and debris.