The CC DIRECT CONNECT setting should not matter for this application.

Everything else seems to be set appropriately, so it’s time to debug your set-up:

  • check any routing and cabling between the Nanokontrol and the OT;

  • use a MIDI monitor program on your computer (Windows/OS X?) to see what messages are arriving from the Nanokontrol when you move the faders;

  • if you have another controller or can set up Ableton Live appropriately, use it to try sending the appropriate messages to the OT