On that learning curve myself. Guitar, Bass musician for years. Octatrack X 1.5 years. Don’t think I’ve noticed as much talk about this in this forum.
I ve had to approach it like regular recording- which I’ve had to slowly teach myself.
Never been satisfied w direct input either guitar or bass. Not warm.
Transients and highs peak/ clip the signal, so I turn the input gain down .
Best to get good sound before input. Try slight comp and/or EQ from small affordable unit ( e.g., FMR Audio , Summit) . Trial and error.
I Currently record * Acoustic Upright bass mic’d >preamp > Saffire I/O > Ableton
*Electric bass > real amp+ cab > mic > Preamp > I/O > Ableton
BUT , good results with Guitar or Bass guitar direct > Preamp ( e.g. Summit Audio) > I/O > Ableton .
A simple guitar DI box or SansAmp might help instead of preamp.
Then I can more effectively edit the chords, arp’s, or bass loop and levels ( inside Ableton) into an WAV.
Reason for above technique - Awkward to record lengthy phrases or perc loops beyond 16sec OT limit, ESP without MIDI footswitches. Careful of the live recording “rabbit hole” - mic’s, compressors, EQ’s .bla, bla, bla…
ALSO for live percussion , found sounds,… a ZOOM stereo recorder, load into Ableton , edit , load all of the above into Octatrack. Very useful.
I’ve had bass + guitar amps for years.
LED’s are only input monitoring I’m aware of.
Direct to OT is tricky. Recently realized adding para-EQ then Compression FX on the track can “nice up” a flat audio track. For you, maybe guitar> SansAmp > OT, low to med input gain on OT , then a little per-track EQ then Comp inside OT