Reply to Xone 32 level issues

So to get the VU meters on my new xone 32 to work I have to have the sound so loud that there is no way I can play with any of my family home. When I play at a reasonable sound level the channel meters and master VU meter either only light up the first bar, or dont light up at all.

Does the mixer not picking up sound on the VU meters mean the sound is too low and am losing something with respect to quality?

I have tried playing with the master in traktor, the master output on the mixer, and the gains on the back of the mixer, but I cannot seem to find the sweet spot if you will.

If someone can help me mess with some settings to get this thing set right it would be much appreciated.