first off thats not a chili.....more likely a carnation coral of the genus dendronepthya......totally a filter feeder.
in the wild, these guys live in cave where no light gets to them at all...they seem to prefer darker locations in the tank, but most usually starve to death without heavy amounts of zooplankton in the water column....this is extremely hard to duplicate in a closed system because such a high influx of organic material would result in poor water quality and would also be extremely costly, and would likely cause nuisance algaes to flourish!
good luck, but i wouldnt expect it to bearound for long!
jon