How to set up an instrument on a separate MIDI channel?

This is not possible. You can only play one sample/instrument at a time on the Tracker via MIDI. Now if your instrument is a beat slice, this could still work though.

This is called MIDI Synthesizer Mode by the way.
You can read more about it in the Manual - Section 11.9 MIDI Synthesizer.

There is a wish regarding allowing changing instruments via MIDI for this mode:

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