Mit,
I'm no expert here, so take all of this with a grain of salt ...
In viewing the wiring diagram, it looks to me like your loco has a pretty simple setup. As you know, HO runs on DC, with one rail acting like a Positive terminal of a battery, and the other rail acting like the Negative terminal of a battery.
Some diesel locos have their Positive pickups on one truck (say the front), and their Negative pickups on the other truck (the rear, in this example). It looks like your loco has BOTH positive and negative pickups on EACH of the trucks. I'm not really sure why that's needed, other than to help the loco navigate through local small dead spots in way of switches / turnout. Regardless, if this is the case, then the front truck needs to be wired in parallel with the rear truck ... i.e., positive to positive, negative to negative, or ... right rail to right rail, left rail to left rail.
In addition, your rear truck has a separate pair of wires (also in parallel) that go forward to your light.
I hope this is consistent with what you're seeing by looking at the actual loco. My comments are based upon the wiring diagram, only ... your pic of the loco is really too small to see any details.
Hope this helps,
TJ