Sorry, I wasn't clear enough in my initial post.
Yes, I cut the traces at the red lines.
Let's just say the white and red light are indicating if the loco is going forward or backwards. Both lights are on the left side of the pc board.
I should add a photo of the underside as well. Will do so later.
Right now it works like this:
If I power up the blue and white lines on the left side, the white LED is on.
If I switch the power, the red LED is on.