I bought a Torpedo Studio last week and spent a tremendous amount of time trying to figure out a similar setup. As far as I can tell, this will work with the Torpedo Live, also. Here's what I did:
1) Axe FX 3: In the Global Settings menu, disable AMP modeling. Enable CAB modeling.
2) Torpedo Remote: Turn Miking OFF
Here's my signal flow. I write Torpedo Studio, but this *SHOULD* work with the Torpedo Live just the same.
* I use AXE FX Ouput1 -> ears because I monitor with my headphones even though I DI via USB
* I Use ... -> Torpedo -> AFX3 INPUT2... because of a technical reason that doesn't apply to the Live. You can use any of INPUT 2/3/4 with your setup and any OUTPUT of 2/3/4 to the Torpedo
You're using an external effects pedal, also. It would be similar... you would make one of the following changes from what you see in the signal flow I show above:
Guitar -> Pedal -> Axe FX 3 [input1] -> Etc.
Guitar -> AF3 [Input1]--[etc]--[Output3]--> Pedal -> AF3 [Input3]--[etc]--[Output2]--> Amp --> Live --> AF3 [Input2]--[etc]--[cab]--[etc]--[Output1]